Moneycontrol Bureau
Shares of Godrej Properties spiked 5.8 percent intraday on Tuesday after the company has entered into an agreement with Godrej and Boyce (G&B) to develop a new project on the latter’s property on the Eastern Express Highway, Vikhroli, Mumbai.
The Mumbai-based real estate developer said the potential saleable area in this project would be up to 8 lakh square feet and was likely to comprise of premium residences as well as a small component of convenience retail.
Godrej Properties will act as development manager and will work with G&B on the conceptualisation, design, sales, and marketing of the project. For its services, the company will receive a fee equal to 10 percent of the total 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," the developer said in its filing.
In addition to Godrej Platinum and this new project, Godrej Properties is also developing a 35 acre mixed-use development in Vikhroli called The Trees.
"We now have about 5 million square feet of saleable area in Vikhroli that is under various stages of execution or planning. This new development will add to the scale of our operations in Vikhroli and will help us build momentum in establishing Vikhroli as Mumbai's most exciting destination," Pirojsha Godrej, Managing Director & CEO said.
At 13:13 hours IST, the stock was up 5.4 percent to Rs 180.10 amid large volumes on the BSE.
Posted by Sunil Shankar Matkar
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