More such joint ventures and joint development projects expected to come up in the post RERA era
Godrej Properties Ltd. (GPL) has entered into a joint venture with Royale Builders and Developers to develop a 13 acre land parcel on Bellary Road (NH-7) in North Bengaluru on which it plans to develop a modern residential group housing project of approximately 1,25,000 square meters (1.34 million sq ft).
JLL India, real estate consultancy and professional services firm, structured this marquee transaction between Royale Builders & Developers, one of the largest land aggregators in Bangalore, and Godrej Properties Ltd.
The Bellary road micro-market has emerged as one of the fastest growing markets of Bengaluru with several infrastructure developments and real estate projects coming up in the area. The site is in close proximity to Bangalore International Airport, Aerospace SEZ and IT & Hardware Park, Devanahalli. It offers good connectivity to the key commercial and industrial catchment areas of Devanahalli, Hebbal and Yeshwantpur. This will be GPL’s fifteenth project in Bengaluru.
“We are happy to add this new project in a great location in Bangalore. Bangalore is a key market for us and this project addition fits well with our strategy of expanding our presence across the country's largest real estate markets,” said Pirojsha Godrej, Executive Chairman, Godrej Properties.
Godrej Properties has also entered into a Development Management Agreement (DMA) with Manyata Developers to develop a group housing project in East Bengaluru.
“As the industry gets consolidated in the post-demonetization and RERA era and recent ccompliance and fiscal prudence norms under RERA come into play, we are likely to see many joint venture/ joint development projects. This will create an opportunity for some to enter into newer markets while for others it will allow for easier monetization of their lands and further enhance marketability. For the customer, this means a lot more reliable options to choose from and better quality inventory since each developer will focus on their strengths and build inventory worth its value,” says Ramesh Nair - CEO & Country Head, JLL India.
“North Bangalore is one of the fastest-growing corridors in the city. Excellent connectivity to the airport and ready-to-move-in office spaces are the key drivers of demand in this market, which will see the development of about 10 -15 million sq ft of office space over the next 5-7 years. This will bring with it an escalating demand for homes in this market. A development of this scale, backed by the stakeholders’ strong reputation, will be a boon to buyers on the lookout for an elevate lifestyle with best-in-class social and physical infrastructure,” he says.M.M. Bhatia, chairman, Royale Builders & Developers said, “This collaboration is special to us considering the incredible Godrej brand, and comes close on the heels of our earlier partnership with Prestige Group. An expansive residential project of this nature will create tremendous value for end-users and investors, not least of all because the Bellary Road micro-market is one of the fastest-growing real estate precincts of Bangalore.”