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Godrej Properties gains on new project, buying shares of subsidiary

The company has been appointed development manager for a new project in Mumbai and has acquired shares of Godrej Premium

SI Reporter  |  Mumbai 

has gained around 6% to Rs 263.90 in on being appointed as development manager for a new project in Vikhroli, Mumbai and acquiring the shares of Builders.

has entered into an agreement with Godrej & Boyce (G&B) to develop a new mixed-use project on the property at Vikhroli, Mumbai. The potential saleable area in this project will be approximately 110,000 square meters.

will act as development manager and will work with G&B on the conceptualisation, design, sales, and marketing of the project. For its services, Godrej Properties will receive a fee equal to 10% of the revenue generated from the development. The costs for design and construction of the development will be borne by Godrej & Boyce in its role as owner-developer while the cost for sales and marketing will be borne by Godrej Properties in its role as development manager.

Further, Godrej Projects Development Private Limited (GPDPL), a wholly owned subsidiary of the Company has acquired 49% of the paid-up share capital and entire Debentures of Builders Private Limited (GPBPL), a subsidiary of the Company, from Madhavi SA Investments LLC and Madhavi Ventures Limited.

The stock opened at Rs 256.05 and has hit a high of Rs 268.90 and around 1.5 lac shares have changed hands on and combined, till 9:35 hrs.

First Published: Tue, December 30 2014. 09:38 IST