BENGALURU: Mumbai-based Macrotech Developers Ltd., which operates under the Lodha brand, is in the process of acquiring G Corp Developers Pvt Ltd’s stake in a cluster of residential projects in Bengaluru, entering the southern property market. Said people familiar with the development.
With G Corp exiting these projects in Bengaluru, Macrotech The existing Joint Development Agreements (JDAs) with the respective landowners will replace the former.
On Thursday, Macrotech, which manufactures and sells in its main markets Mumbai Metropolitan Region (MMR), and Pune, said it has forayed into the Bengaluru market and acquired 100% equity of G Corp Homes in a project. The first JDA is signed. Project in North Bangalore with Estimated Sale Booking Price 1,200 crores, has 1.3 million sq ft of salable area and will be launched in the coming year.
The developer has appointed Rajendra Joshi, former head of residential business at Bengaluru-based Brigade Enterprises Ltd., as CEO for Bengaluru market.
Anarock Property Consultants facilitated the transaction.
“The North Bengaluru project is the first of the few housing projects in which Macrotech will acquire G Corp’s share. There has been a transfer of stake for this project first, and others will follow in the coming days. Macrotech has big plans for Bengaluru and will gradually scale up its operations.”
“We are extremely pleased to announce that the company, after several quarters of detailed evaluation, has decided to foray into the residential market in Bengaluru. Abhishek Lodha, Managing Director and CEO, Lodha Group said, “Bengaluru housing market is characterized by stable end-user demand and has significant space for a new player of scale and quality as the top 5 players account for only 30% of the market share.
“…Our expansion strategy will be driven by sequential growth using the Capital Lite JDA model, which will help us achieve a presence across multiple locations in Bengaluru over the next few quarters. We have a strong pipeline of JDAs from several landlords which we are currently evaluating,” Lodha said.
Macrotech also said that its entry into Bengaluru has not changed its debt reduction guidelines for 2022-23.
The company significantly reduced its net debt 9,300 crore in 2021-22.
In a recent interview, Lodha told Mint that it has virtually zero net debt to its UK business and aims to reduce debt in India’s business. below 3,000 crore 6,000 crores.
Its pre-sales guidance for 2022-23 jumps 25% 11,500 crores.
With the residential sector on the recovery curve, property analysts have said that some real estate developers are again looking at establishing a multi-city presence outside their core markets.