Godrej Fund Management (GFM), the real estate private equity arm of the Godrej Group, announced on Monday that it has raised $200 million from Dutch firm APG Asset Management for its $500 million office property fund. This is the fund’s first closing.
The Godrej Group has invested $50 million in the fund called Godrej Build to Core (GBTC) II. The fund manager expects to complete the second and final closing by the end of the year. When asked if GFM would raise funds from Allianz, its investor in the previous fund, Karan Bolaria, MD & CEO, GFM, said: “All options are open and we are in talks with several investors to the second and final fence.”
This is the second fundraising announcement by a real estate fund manager in recent weeks. Last week, Motilal Oswal said it was raising a property fund of Rs 800 crore for construction finance. GFM will have the capacity to develop Class A office assets which will be valued at over $1.5 billion (Rs 11,000 crore) upon completion. The total value of office assets, including those of previous funds, will bring the value of the portfolio to over $3 billion (Rs 22,000 crore), the fund manager said in a statement on Monday.
GFM has fully invested the previously raised capital under GBTC I and Godrej Office Fund I. The platform currently has a strong investment pipeline and aims to deploy the newly raised capital within 12 months, it said. -he declares. It is the third India-focused office venture, and fifth overall, sponsored by GFM.
Bolaria added: “Our group has a strong conviction in the premium office sector in India and we believe that the current market dislocation offers attractive capital deployment opportunities. The addition of this platform brings significant scale to our overall strategy and will open up strategic pathways for value maximization.
Graeme Torre, MD, APG Asset Management Asia, said: “The build-to-core strategy for the Indian office aligns very well with our broader investment aspirations for our pension fund clients and our desire to invest alongside partners who offer the best in their category. execution capabilities.