Godrej Properties decides not to go ahead with DB Realty investment

The real estate firm said the decision was taken after receiving shareholders' feedback. On Friday, the company's scrip fell nearly 10% on BSE

Real estate firm Godrej Properties on Friday said it has decided not to go ahead with DB Realty investment.

The company said the decision was taken after receiving shareholders' feedback. On Friday, the company's scrip fell nearly 10% on BSE.

"After prolonged discussions and taking into consideration the feedback from the stakeholders and minority investors, the Board has decided not to proceed with any further evaluation of potential investment in the equity capital of the DB Realty and the Platform.

"The Company may however continue to explore the possibility of evaluating projects with DB Realty

on a case to case basis," said Godrej Properties in a stock exchange filing.

On Thursday, Godrej Properties said it will invest Rs 400 crore to acquire around 10 per cent stake in DB Realty and another Rs 300 crore to set up a joint platform for undertaking slum redevelopment projects.

The total size of the joint platform of Godrej Properties and DB Realty would have been Rs 600 crore, with each party contributing Rs 300 crore.

Mumbai-based Godrej Properties Ltd, one of the leading developers in the country, had said it will invest a total of Rs 700 crore.

According to a regulatory filing, GPL's board on Thursday granted its approval to evaluate a potential investment in DB Realty Ltd in the form of warrants convertible into equity shares and the setting up of a special purpose vehicle as a joint venture to undertake slum rehabilitation and MHADA redevelopment projects.

In a statement, Godrej Properties said the equity platform will act as a strategic special purpose vehicle providing the company with right of first refusal for all slum rehabilitation and MHADA (Maharashtra Housing and Area Development Authority) redevelopment projects to be identified by DB Realty across Mumbai.

Godrej Properties on Thursday said its consolidated net profit in December quarter nearly tripled to Rs 38.95 crore.

Its net profit stood at Rs 14.35 crore in the same period of 2020-21. Total income increased to Rs 466.91 crore in the quarter from Rs 311.12 crore in the corresponding period of the previous year, according to a regulatory filing.

Net profit jumped multi-fold to Rs 91.68 crore during the first nine months of 2021-22 from Rs 2.19 crore in the year-ago period.

Total income rose to Rs 1,063.12 crore during April-December period of this fiscal year from Rs 757.01 crore a year ago.

Godrej Properties is one of the leading real estate developers in India. It has a major presence in Mumbai region, Pune, Delhi-NCR and Bengaluru.