Godrej Fund Management buys plot of land in Bangalore from Puravankara for Rs 700 crore


Godrej Fund Management, the real estate-focused private equity arm of Godrej Group, has purchased a plot of land, with development potential of 1 million square feet, in urban Bengaluru from a property developer in the As part of a deal valued at around Rs 700 crore, people with first-hand knowledge of the development said. The deal includes an upfront payment of around Rs 525 crore while the remaining amount will be paid before the end of this year.

“The deal was signed this week despite the second wave and shows continued interest from institutional investors in office buildings in India,” said one of the above. Puravankara is also in talks with global funds to form two separate investment platforms with a combined body of Rs 3,000 crore by leveraging some of its assets to fund its future expansion plans.

Karan Bolaria, Managing Director of Godrej Fund Management, confirmed the deal without giving details on the size and financial terms of the transaction. Last year, Godrej Fund Management purchased a plot of land in northern Bengaluru from Century Group in a similar deal worth around Rs.700, marking its foray into the tech capital of the world. country information. ET’s separate email inquiries to Godrej Fund Management, Puravankara and transaction advisor CBRE South Asia went unanswered until time of publication. Godrej Fund Management has two funds, including a $ 450 million Godrej Build to Core and a $ 150 million Godrej Office Fund.

The Godrej group entity started investing in office projects about three years ago and counts Allianz Real Estate and Dutch pension fund manager APG Asset Management among its partners. APG has partnered with the Indian private equity player in four funds covering the residential and office segments. In January, the fund achieved the first close of its $ 500 million office development platform, GBTC II, in partnership with APG Asset Management NV, the platform’s key investor.

As part of this platform, Godrej Fund Management will have the capacity to develop Class A office assets which will be valued at over Rs 11,000 crore upon completion. The total value of office assets, including those of its previous funds, will bring the value of the portfolio on completion to over $ 3 billion, or Rs 22,000 crore. Godrej Fund Management and its subsidiary GodrejInvestment Advisors will together contribute a fifth of the capital of this new office development fund. GBTC is a club-style office investment strategy that invests in the development of world-class office buildings in prime locations in major office markets in India.

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