Godrej Properties raises $275 million under new fund management business

Godrej Properties, the real estate development arm of the Godrej Group, has set up a dedicated funds management business–Godrej Fund Management–in India and Singapore. The subsidiary has raised a $275 million or Rs 1,900 crore capital with Dutch pension fund asset manager APG Asset Management NV as the lead investor. This is a follow on to an existing $200 million residential development platform Godrej PropertiesBSE 1.70 % had set up with an APG led investor consortium in 2012, the developer said in a release to EconomicTimes
Godrej Properties 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.
“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. 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,” said Pirojsha Godrej, Managing Director & CEO, Godrej Properties. Godrej Properties has appointed Karan Bolaria as head of Godrej Fund Management and will be responsible for managing both series of the residential investment programs as well as any future strategies that GFM will undertake.
“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 like residential development in India. In spite of a general slowdown in the asset class in the country over the last 3 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,” said Sachin Doshi, Managing Director and Head of Private Real Estate Investments, Asia Pacific at APG.
APG and Godrej Properties’ investment platform was one of the first joint venture approach in the Indian private real estate market in 2012. The structure was later followed by other foreign institutional investors and Indian developers.