Realty firm Godrej Properties is targeting to sell Rs 2,000 crore worth commercial assets over the next 2-3 years to reduce debt. The company also plans to launch 14 projects this fiscal and is exploring opportunities to add more projects for future development, Godrej Properties Managing Director and CEO Pirojsha Godrej said.
"Our debt has increased to reach about Rs 2,750 crore at the end of the March quarter," Godrej told PTI when asked about the company's debt position.
"We hope to sell Rs 2,000 crore worth commercial properties over the next 2-3 years. This will be utilised to reduce our debt," he added. Godrej Properties net debt increased to Rs 2,764 crore as on March 31, 2015 from Rs 2,605 crore at the end of December 2014.
About two-thirds of the debt is attributable to the commercial projects. Mumbai-based developer is constructing a large commercial project 'Godrej BKC' in Mumbai. It is also coming up with commercial projects at Chandigarh and Kolkata.
On proposed launches, Godrej said: "We will launch 14 projects this fiscal. About 7 will be greenfield projects and seven will be the new phases in the existing projects". He did not give any guidance for sales booking for the 2015-16 fiscal.
The company had achieved a sales booking volume of 3.9 million sq ft worth Rs 2,681 crore in last fiscal. It achieved highest ever annual residential sales of 3.6 million sq ft worth Rs 2,400 crore in 2014-15. Godrej said the company is looking to add new projects during this fiscal through joint venture with land-owners.
"We are exploring opportunities in the cities where we have presence. We are also looking at Delhi-NCR's micro-markets which include Noida," he added. During 2014-15 fiscal, the company added five new projects with about 8 million sq ft of saleable area.
Godrej properties posted 20 per cent rise in consolidated net profit to Rs 190.90 crore last fiscal as against Rs 159.43 crore in the previous financial year. Total income rose by 54 per cent to Rs 1,926.56 crore in 2014-15 fiscal from Rs 1,254.22 crore in the previous year. Godrej Properties, the realty firm of the Godrej Group, is currently developing residential, commercial and township projects spread across 108 million sq ft in 12 cities.
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