Godrej Fund Management enters the commercial real estate private equity space

Godrej Fund Management, the real estate private equity arm of the Godrej Group, has announced the first close of its US $450 million office development fund and a US $150 million office investment fund. Jointly the funds can invest/develop office assets worth over US $1 billion in value, a company statement said.

With this development, the assets under management for GFM, which is also managing two existing residential investment funds, has crossed the US $1 billion mark within one year of it being spun out as a separate business.

The two new funds that have been raised are: Godrej Build to Core – I (“GBTC-I”), a US $450 million ‘club style’ office investment platform that will invest in developing world-class, Grade-A office buildings in leading locations across the key office markets of India. APG Asset Management N.V, which has invested in previous funds managed by GFM, will be the cornerstone investor for GBTC-I. The other newly raised fund is Godrej Office Fund- I (GOF-I), a US $150 million discretionary blind pool fund that will invest in core and core-plus office and commercial properties across India.

“We are pleased to enter the commercial real estate private equity space.  We believe there is a lot of opportunity for our fund management company in both residential and commercial real estate in India and we are happy to see the business quickly reach the $1 billion AUM milestone.  We look forward to building a strong track record of excellence to ensure we remain a preferred partner to institutional capital looking to participate in the growth of the Indian real estate sector,” says Pirojsha Godrej, Chairman, Godrej Investment Advisers.

“We are very pleased with our diversification into the office asset space through successful first closes of both our office funds. We are also delighted to continue our relationship with APG who have been a strong supporter of our funds management business since inception. The blend of investment management capabilities and strategic access to best-in-class development capabilities provides GFM with a competitive advantage and positions it well to deliver the targeted risk adjusted returns,” says Karan Bolaria, Managing Director & CEO, Godrej Investment Advisers.