Godrej family office to buy group realty fund business

In another deal, Anuj Puri is in talks to take over JLL's Rs 500-crore asset management arm

The Godrej family office is taking over the fund management company set up last year by Godrej Properties.

A source in the know said the group, led by Adi Godrej, wanted it to operate as a full-fledged fund management business where it could invest in projects of other developers. “The group feels the fund management arm can stand on its own,” the source said.

The deal value could not be ascertained. Godrej Fund Management raised $275 million (Rs 1,900 crore) from international investors last year to invest in the property developments of Godrej Properties. Dutch pension fund asset manager APG Asset Management, came in as the lead investor for Godrej Residential Investment Program II (GRIP II) fund. Godrej Properties holds a 20 per cent stake in the platform. Karan Bolaria, a senior executive at Godrej Properties, was appointed head of the fund management arm. Sources said Bolaria would continue to head the arm after the family office took over.

A company spokesperson said the valuation of the asset management arm would be based on a third-party report. “This change will have no impact on the collaboration between Godrej Properties and Godrej Fund Management on development funds,” he said.

In another upcoming deal, Anuj Puri, former chairman of property consultant JLL India, is in talks with the US-based brokerage JLL to increase his stake in its fund management business, JLL Segregated Funds Group.

Puri holds 51 per cent in the company and the firm has assets of Rs 500 crore under management. When contacted, Puri said they were bringing in a new management team, including a chief executive and a chief investment officer. He said over a period of time, he would increase his stake in the company but JLL would remain invested in Segregated Funds Group. Puri added the firm had hired Sandip Kundu, managing director of the Indian arm of Wells Fargo, as its CEO. Puri recently took over the residential brokerage of JLL India with a team of over 400 brokers in eight cities.

In 2014, JLL Segregated Funds Group raised Rs 160 crore for its maiden real estate fund. Last year, JLL said it was raising Rs 300 crore for its second fund.