Godrej Properties will develop a Rs 800-crore residential township on the outskirts of Mumbai.
The project, at Panvel, would spread across 110 acres with a saleable area of 35 lakh sq.ft. The launch is scheduled for 2013. The project is expected to be completed in six years.
Mr Pirojsha Godrej, Managing Director & Chief Executive Officer, Godrej Properties, told
Godrej Properties would get 35 per cent of the profits, derived after deducting construction and development cost from the sale proceeds. The current square foot rate at Panvel is between Rs 4500 and Rs 5000.
On the joint venture partners, he said they were a group of individuals who would be eligible for 65 per cent of the profits generated. There was no risk for Godrej as the company would be in charge of the development.
On funding, he said residential projects generally fund themselves and project finance was not difficult to get.
Asked whether Godrej was receiving offers from developers for joint ventures as the real estate market was sluggish, Mr Godrej said both developers and land owners were approaching the company to partner them. There were also many offers for outright sale.
Godrej is working on a redevelopment project in Mumbai in association with a developer.