Bengaluru, February 1, 2018: JLL India the country’s largest real estate consultancy and professional services firm has structured a marquee transaction between leading real estate developers, Godrej Properties Ltd (GPL) and South India’s biggest music company, Lahari Music Group.
As part of the deal, the two companies have joined forces to develop a trophy land parcel in Electronic CityPhase – I, abutting the main Wipro Campus in South Bengaluru. Godrej Properties plans to develop a modern residential housing project of approximately 2.5 million sq. ft. having a project top line of Rs 1,700 crore. This will be GPL’s 16th project in Bengaluru.
This is the fourth successful JV transaction facilitated between Godrej Properties and local landowning institutions by JLL India since January 2017.
Ramesh Nair – CEO & Country Head, JLL India said, “Electronic City is one of the key IT hubs of Bengaluru which has spearheaded the development of the South Bengaluru particularly along the Hosur Road. With its well-developed social and physical infrastructure, improving levels of connectivity, proximity to ready-to-move-in offices and other key locations in the city, Electronic City offers good returns potential. The development of the region has led to the emergence of affordable residential projects and retail projects in this sub-market. Due to improved connectivity, the region has also witnessed the announcement of mid and upper mid-segment housing projects. This is a significant deal to have happened in the city of Bengaluru. Coming at the beginning of the year, we see this as a positive sign for the market and its growth potential.”
Electronic City has about 9 million sq ft of operational office space. In 2017 the office space leasing has improved significantly in this sub-market as manufacturing companies and biotech companies leased spaces. In terms of residential apartments, about 5400 units were launched in and around Electronic City in 2017.
About 6000 units were sold off during the same period. The upper middle class to affordable income group forms the majority of buyers in the Electronic City sub-market.
Manoharan Naidu, Managing Director, Lahari Music Group said, “With the JV we have entered into the development of real estate. The collaboration with Godrej Properties also means that the project will offer best-in-class properties that modern buyers of Bengaluru are looking for. We are confident that the project will redefine modern living in the city.”
Land sales in Bengaluru have been good in last two years. Infrastructure developments such as new metro routes, roads, and flyovers started operations or construction in last one year for further improved connectivity of many new locations making land deals more attractive.
This is improving land sales further in Bengaluru. Overall the city’s growth dynamics have been strong in as the city continued to hold the largest share of office space absorption in India at close to 8 million sf maintaining a significant volume.
The Residential sales sector also remained stable in 2017 with a launch of over 20,000 residential units in 2017. Sales of residential outstripped new launches, impacting the market positively. The estimated sales for residential units in Bengaluru was 25,118.
JLL is India’s premier and largest professional services firm specializing in real estate. With an extensive geographic footprint across 11 cities (Ahmedabad, Delhi, Mumbai, Bengaluru, Pune, Chennai, Hyderabad, Kolkata, Kochi, Chandigarh and Coimbatore) and a staff strength of 9,300 the firm provides investors, developers, local corporates and multinational companies with a comprehensive range of services including research, analytics, consultancy, transactions, project and development services, integrated facility management, property and asset management, sustainability, industrial, capital markets, residential, hotels, healthcare, senior living, education and retail advisory. The firm was awarded the Property Consultant of the Decade at the 10th CNBC-Awaaz Real Estate Awards 2015 and the Best Property Consultancy in India at the International Property Awards Asia Pacific 2016-17