Godrej Fund Management (GFM), the real estate private equity arm of the Godrej Group, has raised $500 million through its GBTC II office development platform in partnership with Dutch-based APG Asset Management NV (APG), the investor main of the platform.
Under this scheme, GFM will develop Class A office assets which will be valued at over US$1.5 billion (approximately ₹11,000 crore) upon completion and the total value of the office assets including those of previous funds, will bring the value of the portfolio at completion to over $3 billion (approximately ₹22,000 crore). GFM has fully invested the capital previously raised under GBTC I and Godrej Office Fund I.
GBTC is a club-style office investment strategy that invests in the development of office properties in prime locations across major office markets in India. The platform currently has a strong investment pipeline and aims to deploy the newly raised capital within 12 months.
It is the third India-focused office venture, and fifth overall, sponsored by GFM.
“Our group has a strong belief 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 avenues for maximizing value going forward,” said Karan Bolaria, Managing Director and CEO of Godrej Fund Management.
“The ‘build-to-core’ strategy for the Indian offices aligns very well with our broader investment aspirations for our pension fund clients and our desire to invest alongside partners who offer the best execution in their class,” said Graeme Torre, Managing Director, APG. Asia Asset Management.