Motilal Oswal PE picks up 49.9% in Godrej Buildwell for Rs 45 cr

MUMBAI: Motilal Oswal Private Equity Advisors has invested around Rs 45 crore in Godrej Buildwell, an SPV (special purpose vehicle) floated by Godrej Properties and plans to invest another Rs 5 crore soon, for a 49.9% equity stake in the firm. Godrej Buildwell will use the fund to develop a high-end residential project at Hebbal in Bangalore.

"This is our first project with Godrej Properties and we are looking at more such opportunities across the country. We also believe that the project will be one of its kind combining synergies of project development experience and market knowledge of both the firms," said Motilal Oswal PE's Director (Real Estate) Harvesp Mehta in a release on Wednesday.

The project is being developed along the 'golden corridor' of Hebbal and Devanahalli It has an easy access to the six-lane Golden Quadrilateral highway, which ensures excellent connectivity to the international airport and the city.

Motilal Oswal, that manages two funds - India Business Excellence Fund (IBEF) and India Realty Excellence Fund (IREF) - has so far invested in four projects, three in Mumbai and one in Bangalore, the release said, adding that the Bangalore residential property market is witnessing a revival in fortunes due to the economy's strong performance and changing dynamics of the IT industry. Property prices in Bangalore have seen a 15% rise since 2009 due to strong demand, primarily driven by the city's large IT workforce.

Developers expect prices to rise by a further 10% before March 2011 keeping in mind robust sales expected during the festival period, it added.