GPL to redevelop project in central Mumbai

Realty firm Godrej Properties today said it has entered into a development management agreement with RR Builders to re-develop a MHADA property at Byculla in central Mumbai.

The company's wholly owned subsidiary Godrej Projects Development (GPDPL) will act as a development manager and will be responsible for conceptualisation, design, sales, and marketing of the project, GPL said in a statement issued here.

As per the agreement, GPDPL would be entitled to a development management fee of Rs 50 crore from RR Builders over the duration of the project and also receive part of the revenue as a promoter beyond certain defined selling prices, the release said.

"The development management model will allow Godrej Properties to benefit from this development with very limited risk. We will seek to ensure this becomes one of the city's best residential developments," GPL Managing Director and Chief Executive Officer Pirojsha Godrej said.

The cost of the project will be borne by RR Builders in its role as owner-developer, while the cost for sales and marketing will be borne by GPL, the release said.

The project, spread over around 2.5 acres, will offer nearly 3 lakh sq ft of free saleable residential area comprising 2, 3, and 4 BHK apartments, it added.