Godrej Properties to raise Rs 1k cr from GIC-managed investment firm

Godrej Properties Ltd (GPL) will raise Rs 1,000 crore through preferential issue of shares to Singapore-based GIC-managed investment company, its executive chairman Pirojsha Godrej said.

The fund would be utilised for business development and acquisition of new projects.

"The board has approved preferential allotment of shares to an investment company managed by GIC to raise Rs 1,000 crore," Godrej told PTI.

The investment company will have a stake of 5 per cent in the company post allotment of shares, he added.

The company will issue about 1.27 crore shares at Rs 783.5 apiece to Gamnat Pte (GIC-managed firm) on preferential basis.

Godrej said the company acquired 12 new projects during 2017-18 with saleable area of 23.5 million sq ft. About 83 per cent of the area added in the year was in partnership with other developers.

"We will utilise Rs 1,000 crore for business development and add new projects in the geographies where the company is present," he said.

Godrej said the real estate market, particularly housing, is still slow, which presents a huge opportunity for organised players.

The company is developing residential, commercial and township projects spread across about 151 million square feet in 12 cities. GPL has major presence in Delhi-NCR, Mumbai, Bengaluru and Pune.

GIC, a Singapore-based sovereign wealth fund, has major investments in Indian real estate market. Recently, it picked up 33.34 per cent stake in DLF's rental arm for about Rs 9,000 crore.