Godrej Properties, APG led consortium ink Rs 770 crore equity commitment for housing projects

MUMBAI: Realty developer Godrej Properties and a consortium led by Dutch pension service provider APG have entered into a pact for Rs 770 crore investment commitment. These investors including global fund-of-funds Sparinvest Property Fund II will invest in Godrej Properties' residential projects, the realty company said in a notice to stock exchange.

The initial commitments in this Godrej properties' investment reserve will be in the ratio of 29:71 by the Mumbai-based realty developer Godrej Properties and investors, respectively.

Godrej Properties will be the exclusive development manager of the projects to be pursued through these equity commitments for which it will receive a development management fee.

The investment reserve will primarily focus on residential development of mid-income projects in Mumbai, National Capital Region and Bangalore. It may also consider investing opportunistically in Pune, Chennai, the notice said.

Godrej Properties is expecting the Rs 770-crore residential projects investment platform to generate substantial earnings for the company over the next 7 years.

At 10:45 AM, shares of Godrej Properties were trading at Rs 529.70 on the Bombay Stock Exchange, up 0.4 per cent from Friday's close.