Bigger realtors are partnering with smaller ones to cash in on the opportunities thrown up by Real Estate (Regulation and Development) Act, 2016 (Rera).
On Tuesday, Godrej Properties entered into partnership to develop a large residential project in Pune's Mamurdi area under the 'development management model'
Under the model, smaller realty players part with their rights to bigger players to act as 'development managers' in lieu of revenue and profit shares or a fee.
In the months to come, more such joint ventures or joint developments are likely to be witnessed in the real estate industry, experts said.
According to the Godrej Properties announcement, the Pune residential project will be developed on approximately 59 acre within Pimpri Chinchwad Municipal Corporation limits, near Mumbai-Pune Expressway.
"The project will offer approximately 418,000 square metre, or 4.5 million square feet, of saleable area," said the company statement.
This isn't the only deal with between Godrej Properties and Manyata Developers. Last month both the companies had announced a tie-up under the similar model for a group housing project in Bengaluru. This project will be spread over 53 acre, with 1.35 million sq ft of saleable area spread over 16 acres under the first phase.
In the last week of September, Godrej Properties added another residential project in Bengaluru to its portfolio through a joint venture with Bengaluru-based Royale Builders and Developers. As per the deal, 13 acre of land in Bengaluru will be developed for a group housing project of around 125,000 sq metre or 1.34 million square ft. The property is close to Bengaluru International Airport, IT & Hardware Park and Aerospace SEZ.
In mid-September, DNA Money had reported about Godrej Properties getting into a joint venture with debt-laden Nirmal Ventures, formerly Nirmal Lifestyle, for a residential project that has been stuck for years in Thane near Mumbai.
Starting 2013, Nirmal Ventures had started booking apartments but did not commence construction. Spread over 14 acre, the project will offer around 195,000 sq metre, or 21 lakh sq ft of residential saleable area.
Pirojsha Godrej executive chairman in an interview to DNA Money before Rera rollout had said that with the housing regulator stepping in, it will open up opportunities for Godrej Properties "to partner with such developers (who are wanting to exit the sector) or jointly develop some land parcels and it is something we are looking at".
On these four deals, Godrej said, “This fits with our strategy of deepening our presence across the country's leading real estate markets."
COLLABORATION ST
- Realtor tied up with Bengaluru-based Manyata Developers to develop a residential project in Pune's Mamurdi area
- The project will offer approximately 418,000 square metre, or 4.5 million square feet, of saleable area
- It has tied up with Royale Builders to develop 13 acre of land in Bengaluru for a group housing project of around 125,000 sq metre
