Godrej Properties today said it has created an Rs 770-crore residential development platform with international investors, led by Dutch firm APG Sparinvest Property Investors, to develop mid-income residential projects in the big cities, according to BL report.
The fund will focus primarily on development of mid-income residential projects in Mumbai, Delhi NCR, and Bangalore. It may also consider opportunities in Pune and Chennai, the statement added.
The initial commitments will be in the ratio of 29:71 by Godrej Properties and the investor group respectively, Godrej Properties said in a statement here.
"The platform will enable Godrej Properties to capture outright land purchase transactions in the present dislocated market conditions without deviating from its asset light model and is expected to generate substantial earnings over the next seven years, which will contribute significantly to the company's growth," the company said.
Godrej Properties will be the exclusive development manager of the projects, for which it will receive a development management fee, it said.
"We are excited about this association with a global investor group led by APG, which will enable GPL to source deals with large capital requirements in our focus markets of Mumbai, Delhi NCR and Bangalore.
"This is an important growth opportunity for Godrej Properties which will allow us to extend the number of projects in our portfolio while maintaining our capital efficient land sourcing strategy," Godrej Properties Managing Director and Chief Executive Pirojsha Godrej said.