Macrotech Developers forms 2 JVs to build realty projects
NEW DELHI: Aiming to strengthen its presence in the Mumbai Metropolitan Region and Pune, realty firm Macrotech Developers has formed two joint ventures to build projects with sales value of ₹1,500 crore and is looking for more such partnerships to grow business.
Macrotech Developer, earlier known as Lodha Developers, got listed on the stock exchange last month after successful launch of its ₹2,500-crore initial public offering (IPO). In an interview, its managing director and chief executive officer Abhishek Lodha said the company has entered into two Joint Development Agreements (JDAs) in Mumbai Metropolitan Region (MMR) and Pune with two real estate companies. He said the company has huge land bank in MMR and Pune, but not in all micro-markets of these two cities.
“We want to focus on MMR and Pune for the next 2-3 years. We have land in certain parts of these two cities but not everywhere,” Lodha said, adding that the company would enter into more such JDAs to widen presence. He did not disclose the names of two real estate firms with whom it has partnered with. Lodha said the company would go for outright land purchases only if there are good opportunities. In an investor presentation, Macrotech Developers informed that it has entered into two JDAs, first at Western Suburbs (Malad) having an estimated gross development value (GDV) of around ₹600 crore and second at Pune (NIBM) with estimated GDV of around ₹900 crore. Lodha said the company would share revenue with landowner partners in these two projects.
“We see in both these project approximately 20% of the topline will be a margin for the company,” he said. Lodha expects to add several other such joint development projects over the next 12-24 months. Lodha expects that joint ventures will contribute in the range of ₹3,000 to ₹4,000 crore of annual sales in 2023-24. Macrotech Developers is targeting to bring down its net debt to zero over the next three years from the level of around ₹16,000 crore.