Macrotech enters Bengaluru market, signs first project

Bengaluru: Mumbai-based Macrotech Developers Ltd, which operates under the Lodha brand, is in the process of acquiring the stake of G Corp Developers Pvt Ltd in a clutch of residential projects in Bengaluru, marking its entry into the southern property market, said two people familiar with the development.

With G Corp’s exit from these projects in Bengaluru, Macrotech will replace the former in the existing joint development agreements (JDA) with the respective landowners.

On Thursday, Macrotech, which builds and sells in its core market Mumbai Metropolitan Region (MMR), and Pune, said it has entered the Bengaluru market and signed its first JDA, by acquiring 100% equity of G Corp Homes in a project. The project in north Bengaluru, with an estimated sales bookings value of 1,200 crore, has 1.3 million sq ft of saleable 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 the Bengaluru market.

Anarock Property Consultants facilitated the transaction.

“The north Bengaluru project is the first of a few housing projects, in which Macrotech will acquire G Corp’s stakes. The transfer of the stake has happened for this project first, and the others will follow in the coming days. Macrotech has big plans for Bengaluru and will scale up its operations gradually,” said the first person mentioned above, who didn’t wish to be named.

“We are very pleased to announce that the company has decided to enter Bengaluru’s residential market, after conducting detailed evaluation for several quarters. Bengaluru housing market is characterized by steady end user demand and has significant room for a new player of scale and quality since the market share of the top 5 players is only around 30%,” said Abhishek Lodha, managing director and CEO, Lodha Group.

“…Our expansion strategy will be driven by gradual growth using the capital light JDA model, further enabling us to have presence in multiple locations in Bengaluru over the next few quarters. We have a robust pipeline of JDAs from multiple landowners that we are currently evaluating,” Lodha added.

Macrotech also said that its entry into Bengaluru does not change the debt reduction guidance for 2022-23.

The company significantly reduced its net debt to 9,300 crore in 2021-22.

In a recent interview, Lodha told Mint that it is almost net debt zero in its UK business and aims to bring down the debt in the India business by 3,000 crore to below 6,000 crore.

Its pre-sales guidance for 2022-23 is a 25% jump to 11,500 crore.

With the residential sector on a recovery curve, property analysts have said that some real estate developers are again looking at establishing a multi-city presence, outside their core markets.

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