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GODREJ PROPERTIES: Key takeaways
Brand as a differentiator. Godrej mentioned that their brand has helped them establish
a presence in 11 cities in India and specifically mentioned (1) the recently launched
Gurgaon project which as had encouraging sales despite it being a new geography for
them and (2) Ahmedabad township (total 40 mn sq. ft across phases) where it has sold
three phases and has attracted many first time NRI buyers who were looking to buy a
property near / in their home town but were hindered by the lack of a quality developer.
“Capital lite” model to continue. Godrej is looking to continue to sign JDAs as a
preference, divest equity stakes at the project level and also restrict capital blocked in
rental properties to free up capital for further expansion as it believes that that is the
most efficient use of their capital. Even here, the Godrej brand attracts JDA partners as
well as project-specific equity investors.
Execution in FY2011E has been impacted by delays in approvals. FY2012E should
witness good progress on execution as well as sales.
Prices. Godrej has seen price increase in all markets as it has had limited sales or launches
in the south-central Mumbai market where there are maximum concerns of pricing pressure.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
GODREJ PROPERTIES: Key takeaways
Brand as a differentiator. Godrej mentioned that their brand has helped them establish
a presence in 11 cities in India and specifically mentioned (1) the recently launched
Gurgaon project which as had encouraging sales despite it being a new geography for
them and (2) Ahmedabad township (total 40 mn sq. ft across phases) where it has sold
three phases and has attracted many first time NRI buyers who were looking to buy a
property near / in their home town but were hindered by the lack of a quality developer.
“Capital lite” model to continue. Godrej is looking to continue to sign JDAs as a
preference, divest equity stakes at the project level and also restrict capital blocked in
rental properties to free up capital for further expansion as it believes that that is the
most efficient use of their capital. Even here, the Godrej brand attracts JDA partners as
well as project-specific equity investors.
Execution in FY2011E has been impacted by delays in approvals. FY2012E should
witness good progress on execution as well as sales.
Prices. Godrej has seen price increase in all markets as it has had limited sales or launches
in the south-central Mumbai market where there are maximum concerns of pricing pressure.
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