Big brands eyeing development management of realty projects
The slow- moving real estate market today offers opportunities to large developers to help builders stuck with inventory or unfinished projects.
To cite a few examples, Godrej is signing an agreement with Lotus Greens to build a housing project in Noida and Ramaprastha is signing several joint development agreements with a branded developer.
SARE Homes, an FDI developer promoted by Duet Group, has signed two development contracts with devel- opers and is in the process of financial closure of two commercial projects. It is also in the final stages of negotiating with three large residential projects.
“The company has signed ₹ 1,000 crore of sale value worth of inventory that will be sold out of these projects,” says Vineet Relia, managing director of SARE Homes.
“The development management model will evolve gradually because the branded developers coming in to take over delayed projects or take on new ones will assess each project, the risk to their reputation before choosing t o complete a particular project,” he says.
Another realty company, Ramaprastha has entered into three agreements for its projects spread across 40 acres with a leading developer, mostly for greenfield g roup housing projects and is in talks for a brownfield project in Gurgaon on licensed land.
“It is a win- win for both entities as Ramaprastha has land parcels that it had no plans to develop in the next four to five years. By entering into development agreements, we will be in a position to monetise our land parcels,” says Nikhil Jain, CEO, Ramprastha Group.