Godrej Properties partners with APG to set up $275-mn fund

Godrej Properties today announced setting up of a USD 275 million real estate fund, with Dutch pension fund APG as the lead investor, to acquire new housing projects for expansion of its business.
Mumbai-based Godrej Properties, the real estate arm of the diversified Godrej group, will put in USD 55 million in the new fund to have 20 per cent stake, its MD and CEO Pirojsha Godrej said.
The fund would be infused in new projects to be developed by Godrej Properties, he said, adding that the money would not be invested in projects of third parties.
This is the second such platform set up by Godrej Properties. In 2012, a USD 200 million residential development platform GPL was set up with an APG-led investor consortium.

"Godrej Properties Ltd has created a dedicated real estate funds management business in India and Singapore - Godrej Fund Management (GFM)," the firm said in a statement.
"GFM has raised a USD 275 million (Rs 19 billion) pool of capital, Godrej Residential Investment Program II (GRIP II), with Dutch pension fund asset manager APG Asset Management NV (APG) as the lead investor," it added.

GFM will advise GRIP II investors on investments into a residential development platform with Godrej Properties. Karan Bolaria has been appointed to head GFM.
When contacted, Godrej said: "We have closed a new fund with corpus of USD 275 million in partnership with APG. This will strengthen our ability to access capital for acquisition of new projects".

The funds will be utilised on new projects to be developed by Godrej Properties, he said, adding that the company was looking for new projects and the funds would be deployed over the next 2-3 years.
Through the first fund, investments were made into two housing projects in Bengaluru and Mumbai and another two in National Capital Region. Godrej Properties and APG had bought 18 acres of land from realty firm Puravankara Projects Ltd.
Godrej said the new platform would help us "attract high quality long-term equity investors to partner with us in our developments across India".
"This fits well with our strategy of deepening our presence across the country's leading real estate markets while maintaining a capital-light development strategy," he added.

"In spite of a general slowdown in the asset class in the country over the last 3 years, our partnership projects have sold well, which is a testament to our partner's execution capability and brand strength, said Sachin Doshi, MD and Head of Private Real Estate Investments, Asia Pacific, APG.
Godrej Properties is currently developing residential, commercial and township projects spread across 115 million sq ft in 12 cities.