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Godrej Properties buys TDR certificates worth Rs 500 million
Real Estate

Godrej Properties buys TDR certificates worth Rs 500 million

For Rs 500 million, Godrej Properties bought Transfer of Development Rights (TDR) certificates from a person for its Sector 43 project in Gurgaon. This is a practice that is relatively new in the NCR but is frequent in Mumbai. According to persons with knowledge of the situation, this will enable the corporation to build an extra 300,000 square feet, with a potential income potential of Rs 9 billion overall. In place of receiving cash compensation when their property is seized for development projects, landowners in Haryana can get TDR certificates from the government. Developers may then purchase these certificates from you at market prices. The deal's transaction adviser, CBRE, did not answer questions. Godrej Properties did not want to respond. People with knowledge of the transaction claim that about 1,000 TDR certificates with a floor area ratio (FAR) of two were produced. Most of these certificates had a face value of 50 square metres, but some were issued with a face value of about 77 square metres; thus, the total size was about one million square feet. Godrej Properties purchased the certifications for their group home project in Sector 43. "Godrej's adjusted area will be approximately 300,000 square feet, as the project is located on Golf Course Road and the TDR was generated from the Golf Course Road extension." The project is anticipated to be launched by the developer for Rs 30,000 square feet, and the total earnings from the extra area would be Rs 9 billion,? said one of the persons aware of the deal. The transaction will spur the purchase of TDRs across projects by developers in Gurgaon, which was earlier more prevalent in cities like Mumbai. The company's sales in Gurugram increased by 473% in FY24 compared to FY23, and it has a robust launch pipeline for FY25 that includes new projects in Sectors 103, 43, and 54. Godrej Properties won the highest price for two opulent group home plots in Gurgaon's Golf Course Road micromarket in July 2023. Godrej Properties has acquired TDR for one of them, which was located in Sector 43. The projects, which take up 2.76 and 5.15 acres, respectively, are expected to generate over Rs 31 billion in income overall.

For Rs 500 million, Godrej Properties bought Transfer of Development Rights (TDR) certificates from a person for its Sector 43 project in Gurgaon. This is a practice that is relatively new in the NCR but is frequent in Mumbai. According to persons with knowledge of the situation, this will enable the corporation to build an extra 300,000 square feet, with a potential income potential of Rs 9 billion overall. In place of receiving cash compensation when their property is seized for development projects, landowners in Haryana can get TDR certificates from the government. Developers may then purchase these certificates from you at market prices. The deal's transaction adviser, CBRE, did not answer questions. Godrej Properties did not want to respond. People with knowledge of the transaction claim that about 1,000 TDR certificates with a floor area ratio (FAR) of two were produced. Most of these certificates had a face value of 50 square metres, but some were issued with a face value of about 77 square metres; thus, the total size was about one million square feet. Godrej Properties purchased the certifications for their group home project in Sector 43. Godrej's adjusted area will be approximately 300,000 square feet, as the project is located on Golf Course Road and the TDR was generated from the Golf Course Road extension. The project is anticipated to be launched by the developer for Rs 30,000 square feet, and the total earnings from the extra area would be Rs 9 billion,? said one of the persons aware of the deal. The transaction will spur the purchase of TDRs across projects by developers in Gurgaon, which was earlier more prevalent in cities like Mumbai. The company's sales in Gurugram increased by 473% in FY24 compared to FY23, and it has a robust launch pipeline for FY25 that includes new projects in Sectors 103, 43, and 54. Godrej Properties won the highest price for two opulent group home plots in Gurgaon's Golf Course Road micromarket in July 2023. Godrej Properties has acquired TDR for one of them, which was located in Sector 43. The projects, which take up 2.76 and 5.15 acres, respectively, are expected to generate over Rs 31 billion in income overall.

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