July 3, 2024 |
Godrej Properties Acquires TDR Certificates for Gurugram Development
Godrej Properties has purchased Transfer of Development Rights (TDR) certificates worth Rs 500 million from an individual for its Sector 43 project in Gurgaon, a practice commonly seen in Mumbai but now emerging in the NCR region. This acquisition will enable the company to construct an additional 300,000 sq ft of area, with a total revenue potential of Rs 9 billion, according to sources.
In Haryana, landowners can receive TDR certificates from the government as compensation when their land is used for development projects. These certificates can then be sold to developers at market rates.
CBRE, the transaction advisor for this deal, did not respond to queries, and Godrej Properties declined to comment. Sources familiar with the deal indicated that nearly 1,000 TDR certificates were generated with a floor area ratio (FAR) of 2. Most certificates had a face value of 50 sq m each, while some were approximately 77 sq m, totalling around 1 million sq ft. Godrej Properties has acquired these certificates for their group housing project in Sector 43. This transaction is expected to encourage the purchase of TDRs by developers in Gurgaon, a trend previously more common in cities like Mumbai. Godrej Properties recorded a 473% increase in sales in Gurugram in FY24 compared to the previous year and has a robust launch pipeline for FY25, including new projects in Sectors 103, 43, and 54.
In July 2023, Godrej Properties emerged as the highest bidder for two luxury group housing plots in the Golf Course Road micro-market in Gurgaon, including one in Sector 43 for which the TDR certificates were purchased. The projects, spread over 2.76 acres and 5.15 acres, are expected to generate combined estimated revenue of about Rs 31 billion.
Source : Construction World
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