Godrej Properties, the real estate development arm of Godrej Group, has set up a dedicated funds management business, Godrej Fund Management, in India and Singapore. The subsidiary has raised $275 million (Rs 1,900 crore) capital with Dutch pension fund asset manager APG Asset Management NV as the lead investor.
The Mumbai-based developer will hold a 20% stake in Godrej Residential Investment Program II. The unit, Godrej Fund Management (GFM), will advise investors in Godrej Residential Investment Program II (GRIP II) on investments into a residential development platform with Godrej Properties in India.
This is a follow-on to an existing $200 million residential development platform Godrej Properties had set up with an APG-led investor consortium in 2012, the developer said.
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“The new GRIP II platform in partnership with APG will help us attract high-quality, long-term equity investors to partner with us in our developments across India,” said Pirojsha Godrej, managing director & CEO, Godrej Properties. “This fits well with our strategy of deepening our presence across the country’s leading real estate markets while maintaining a capital light development strategy.”
Godrej Properties has appointed Karan Bolaria as head of Godrej Fund Management, who will be responsible for managing both series of the residential investment programmes, as well as any future strategies that GFM will undertake.
Sachin Doshi, MD and head of Private Real Estate Investments, Asia Pacific at APG, said: “We are pleased to expand our relationship with Godrej Properties. Our strategy of partnering with only the best local operators has allowed us to succeed in a complex market such as residential development in India. In spite of a general slowdown in the asset class in the country over the past three years, our partnership projects have sold well, which is a testament to our partner’s execution capability and brand strength. We look forward to deepening the collaboration between our groups and supporting Godrej Fund Management.”
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APG and Godrej Properties’ investment platform was one of the first JVs in the Indian private real estate market in 2012. On Monday, shares of Godrej Properties rose 2 per cent to close at Rs 287.65 on the Bombay Stock Exchange, while the benchmark Sensex closed up 1.33% at 25285.37.