Godrej taps funds for realty projects
The Rs 6,000-crore Godrej Group is in negotiations with various investment bankers and real estate funds to develop over 1,000 acres of land owned by the group for commercial purposes.
By Rajesh Unnikrishan, TNN |
MUMBAI: The Rs 6,000-crore Godrej Group is in negotiations with various investment bankers and real estate funds to develop over 1,000 acres of land owned by the group for commercial purposes.
The group plans to develop around 1,000 acres of land held through various group companies like Godrej Industries, Godrej Consumer Products (GCPL) and Godrej & Boyce.
The group is also finalising plans to set up a real estate fund and make the group’s real estate arm Godrej Properties public through an IPO early next year. “We will dilute around 10% equity in Godrej Properties which has over the last 16 years emerged as a focused real estate development company.
“The Indian property development sector is already amongst the fastest growing in the world. The sector is likely to emerge as one of the largest in the world in the coming decades. We are in the process of working out various strategies to tap the huge potential of Indian real estate market,” Adi Godrej, chairman, Godrej Group, told ET. Sources said Godrej Properties was looking to mobilise over Rs 600 crore.
HDFC Real Estate Fund has already picked up 49% stake in Godrej Waterside, a special purpose vehicle (SPV) floated by GPL in Kolkota for a consideration of Rs 15 crore. Godrej Waterside develops commercial properties like IT parks in Kolkata.
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Pirojsha Godrej, son of Adi Godrej, who recently joined the Godrej Properties is being groomed to take over the reigns of Godrej Properties. Godrej Industries holds 83% stake in Godrej Properties, while the remaining 11% stake is with the Godrej family. Currently, the company is developing 20m sq ft of land across India. Besides, the company will be developing properties owned by various group companies across India.The group controls the land bank through various group companies and Godrej Properties will form joint ventures (JVs) with them to commercially develop these properties. Godrej Properties is also into JVs with landowners for property development.
“Currently, many corporate houses want to develop their excess land as commercial property. Many of them are either closing down manufacturing facilities at prime locations or shifting facilities to a new location. It provides another growth opportunity for Godrej Properties. We have already formed JVs with various industry houses like RPG Group. We are in talks with many others too,” Mr Godrej added.
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