Godrej Properties has bought Transfer of Development Rights (TDR) certificates from a person for Rs 50 crore for its Sector 43 challenge in Gurgaon, a follow widespread in Mumbai however simply getting began within the NCR area. This may assist the corporate assemble a further 300,000 sq ft of space, with a complete income potential of Rs 900 crore, stated individuals with information of the matter.

Landowners can get TDR certificates from the Haryana authorities when their land is taken for improvement tasks in lieu of financial compensation. These certificates can later be offered to builders at market charges.

CBRE, transaction advisor for the deal, didn’t reply to queries. Godrej Properties declined to remark.

In keeping with individuals acquainted with the deal, practically 1,000 TDR certificates have been generated with a flooring space ratio (FAR) of two. Nearly all of these certificates carried a face worth of fifty sq m every, whereas some certificates have been issued with a face worth of roughly 77 sq. m., leading to a complete space of roughly 1 million sq ft.

The certificates have been purchased by Godrej Properties for his or her group housing challenge in Sector 43.

“Because the TDR generated was from the Golf Course Highway extension and the challenge is on the Golf Course Highway, the adjusted space for Godrej shall be round 300,000 sq ft. The developer is predicted to launch the challenge at Rs 30,000 sq ft, the overall income from the additional space could be Rs 900 crore,” stated one of many individuals conscious of the deal.

The transaction will spur the acquisition of TDRs throughout tasks by builders in Gurgaon, which was earlier extra prevalent in cities like Mumbai.

The corporate recorded a 473% improve in gross sales in Gurugram in FY24 from the yr earlier than and has a powerful launch pipeline for FY25, which incorporates new tasks in Sectors 103, 43 and 54.

In July 2023, Godrej Properties emerged as the best bidder for 2 luxurious group housing plots within the Golf Course Highway micro market in Gurgaon. One in all them was in Sector 43, for which Godrej Properties has bought TDR. The tasks, unfold over 2.76 acres and 5.15 acres, can have a mixed estimated income potential of about Rs 3,100 crore.