Macrotech Developers Plans Rs. 3,500-4,000 Crore Investment in Land Acquisition

In a strategic move to capitalize on the burgeoning demand for residential properties, real estate giant Macrotech Developers Ltd, renowned for its Lodha brand, is gearing up to invest a substantial amount of Rs 3,500-4,000 crore in the current fiscal year. This investment will be directed towards acquiring new land parcels, both through outright purchases and joint development agreements (JDAs) with landowners, to fuel its expansion plans.

With a significant presence in the Mumbai Metropolitan Region (MMR) and Pune, Macrotech Developers has recently ventured into the Bengaluru market, signaling its intent to broaden its footprint across key urban centers. Managing Director and CEO Abhishek Lodha outlined the company's investment strategy, emphasizing a balanced approach between owned land acquisitions and JDAs.

Lodha revealed that the company aims for a 60:40 mix between owned land and JDAs, leveraging its substantial land bank while fostering collaborative partnerships for sustainable growth. The investment in land acquisition is expected to add considerable value to the company's Gross Development Value (GDV), with incremental GDV contributions anticipated from both owned land and JDAs.

During the previous fiscal year, Macrotech Developers achieved significant milestones by adding numerous land parcels for housing projects, collectively valued at over Rs 20,000 crore. This exceeded the company's initial guidance, reflecting a robust pipeline of new projects and a strong commitment to growth.

Despite an increasingly competitive market landscape, Macrotech Developers remains focused on achieving consistent and profitable growth, prioritizing quality over sheer volume in its sales bookings. The company aims to launch 17 housing projects this fiscal year, with a total saleable area of 10 million square feet, projecting a revenue potential of Rs 12,000 crore.

In line with its growth trajectory, Macrotech Developers plans to intensify its investment in project construction, allocating over Rs 5,000 crore for this purpose during the current fiscal year. The company is also committed to enhancing its delivery capabilities, targeting the completion and delivery of more than 10,000 apartments in 2024-25.

Despite a slight dip in consolidated net profit in the March quarter, Macrotech Developers remains optimistic about the overall demand scenario in the housing segment. The company's robust financial performance in the previous fiscal year underscores its resilience and ability to navigate challenges while maintaining steady growth.

With a track record of delivering over 100 million square feet of real estate and ambitious plans for ongoing and future projects, Macrotech Developers is poised to reinforce its position as a key player in India's real estate landscape.

BS