Godrej Fund Management announces first close of new Rs 3,700-crore office development platform
The platform will develop Class-A office assets across India
In one of the largest commercial office space deals in India during recent times, real estate major DLF’s rental arm pre-leased 7.7 lakh sq ft of office space to Standard Chartered GBS to set-up its largest office establishment at DLF Downtown located in Taramani, Chennai. The realtor is developing the Taramani project with a total investment of Rs 5,000 crore. (Image: Moneycontrol)
Godrej Fund Management, the real estate private equity arm of the Godrej Group, has announced the first close of its Rs 3,700-crore office development platform, GBTC II in partnership with Netherlands-based APG Asset Management N.V., the cornerstone investor in the platform.
Under this programme, GFM will have the ability to develop Class-A office assets that will be valued in excess of Rs 11,000 crore on completion and the total value of office assets including those from previous funds will take the portfolio value on completion to over Rs 22,000 crore. GFM has fully invested the previously raised capital under GBTC I and Godrej Office Fund I, the company said.
GBTC is a ‘club-style’ office investment strategy that invests in developing world-class office buildings in prime locations across the leading office markets in India. The platform currently has a strong investment pipeline and aims to deploy the newly-raised capital within 12 months.
This is the third India focused office venture and 5th overall, sponsored by GFM.
“We are pleased to partner with APG on our second build to core platform. Our Group has a strong conviction in India’s premium office sector and we believe the current dislocation in markets provides attractive capital deployment opportunities. The addition of this platform brings significant scale to our overall strategy and will open up strategic avenues for value maximization in the future,” Karan Bolaria, managing director and CEO, Godrej Fund Management.
Graeme Torre, Managing Director, APG Asset Management Asia, said, “We are looking forward to another successful partnership with Godrej. The build-to-core strategy for Indian offices aligns very well with our broader investment aspirations for our pension fund clients and our desire to invest alongside partners who offer best-in-class execution capabilities.”