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Manju AB
Mumbai, July 13: An over-supply of commercial premises and sluggish demand is forcing real estate developers to explore markets outside Mumbai. Godrej Properties & Investments (GPIL), the flagship of Godrej Soaps, is setting up a Rs 15-crore commercial complex in the central business district of Pune-- christened Godrej Millennium--in technical collaboration with Sempcorp Construction (a joint venture between Singapore contructions and Great Eastern Shipping Company).
Godrej Millennium on Koregaon Road in Pune, likely to be complete by April 2000, will be the first Godrej project outside Mumbai. GPIL has identified Pune and Hyderabad for realty projects over the next two years in keeping with this trend.
The five-floor commercial project in Pune will be developed by Patki architects. Each floor-- divided into six units-- will have 19,000 square feet. The commercial premise will cost about Rs 4,000 per square foot.
``GPIL is hoping to earn Rs 75 crore through bookings for its new projects during thecurrent financial year and expects a gross profit of Rs 7 crore. In 1998-99, GPIL earned a profit of Rs 3 crore on bookings worth of Rs 13.7 crore,'' managing director Amit Choudhury said.
Along with Pune, GPIL has identified Hyderabad as a dynamic growth centre and plans to set up commercial complexes at prime locations for the corporate world.
Since its inception in 1990, GPIL has developed more than two million sqare feet of property in various parts of Mumbai city.
According to Choudhury, the major portion of the funding for the projects would be from internal accruals while part of it would be from borrowings. With an equity base of Rs 33 crore, GPIL will be able to manage the intial project expensesm, he pointed out.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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