Pirojsha Godrej, MD and CEO, Godrej Properties, sees Rs 700 crore revenue potential from the second phase, with average realisations at Rs 20,000 per sq ft. Additionally, 93 percent of the first phase was sold out within a month of its launch
Godrej Properties has launched the second phase of its residential project 'The Trees' in Vikhroli. It consists of 256 apartments, with 32,000 square metre of saleable area.
Pirojsha Godrej, MD and CEO, Godrej Properties, sees Rs 700 crore revenue potential from the second phase, with average realisations at Rs 20,000 per sq ft. Additionally, 93 percent of the first phase was sold out within a month of its launch.
Below is the transcript of Pirojsha Godrej’s interview with Sonia Shenoy and Anuj Singhal on CNBC-TV18.
Sonia: You launched your second phase. Just us take us through the numbers. What is the expectation as far as the sales are concerned and also as far as revenue generation is concerned.
A: We are of course, just announcing the launch at the moment, so we will see the numbers as the launch actually unfolds over the next few weeks. But, we are feeling very good about it. As you rightly mentioned, the first phase of this same project did very well for us last quarter and we have now nearly sold out the inventory in that first phase. The total revenue potential from this second phase is about Rs 700 crore that is spread in about 250 apartments.
Anuj: So, what kind of realisations are you hoping from this phase and just to take forward Sonia’s point, how many more phases in the future and overall potential from this project?
A: The Trees is a mixed use development with three residential phases, of which we are launching the second phase right now. There is also two commercial buildings, one of which is already built and one will be built and then there is the hospitality and retail component which will be launched later. So, the total revenue potential of the whole project will be in the range of about Rs 6,000-7,000 crore at current prices. But the phase that we are launching at the moment, it has the revenue potential, as I mentioned, of about Rs 700 crore.
Sonia: And what are the realisations?
A: We are hoping to get, on a blended price on saleable area, about Rs 20,000 a sq ft which is how we get approximately Rs 700 crore from just that 3,50,000 sq ft of space.
Sonia: Just ball-park, when are you looking to launch phase-III?
A: That will be some time in the next financial year, but in terms of which specific quarter, it will really depend on both how this phase does and how the approvals for the next phase in terms of timing unfold.
Sonia: Just give us an update on how the Q4 pre-sales are panning out. What has the quarter been like and what could the ball-park pre-sales be?
A: Obviously, we are still very much in the midst of the quarters, so I do not want to give any guidance about that, but we are as a whole, very happy with how sales have gone. For the first three quarters, our sales were up about 100 percent over the previous year and it has been our best ever year for sales. And hopefully, with this launch coming in with the project we launched earlier in Bangalore, we could have another good quarter, but that remains to be seen.