Godrej Properties creates new fund management arm, raises $275 m

Godrej Fund Management (GFM), the newly-created real estate fund management arm of Godrej Properties, raised $275 million (Rs 1,900 crore) from offshore investors for its new residential investment platform.

Dutch pension fund asset manager APG Asset Management, which had a JV with Godrej Properties for property investments, has come in as the lead investor for Godrej Residential Investment Program II (GRIP II), Godrej Properties said in a release today.

GFM will advise GRIP II investors on investments into a residential development platform with Godrej Properties in the country.

GRIP II is a follow on to the $200-million residential development platform Godrej Properties had set up with an APG led investor consortium in 2012.  

Godrej Properties will hold a 20% stake in GRIP II.  “Karan Bolaria has been appointed to head GFM and will be responsible for managing both series of the residential investment programs as well as any future strategies that GFM.

Pirojsha Godrej, Managing Director & CEO, Godrej Properties said, “The new GRIP II platform in partnership with APG will help us attract high quality long-term equity investors to partner with us in our developments across India. This fits well with our strategy of deepening our presence across the country's leading real estate markets while maintaining a capital light development strategy.”

 Despite dull realty markets, Indian fund managers have been successful in raising real estate funds in the recent months. Recently, Kotak Realty Fund raised Rs 1,600 crore ($250 million) for equity investments in realty projects in the country from institutional investors.

 Recently, ASK Group raised Rs 1400 crore for real estate investments in the country.

Sachin Doshi, managing director and head of private real estate investments, Asia Pacific at APG, said, “Inspite of a general slowdown in the asset class in the country over the last three years, our partnership projects have sold well, which is a testament to our partner’s execution capability and brand strength. We look forward to deepening the collaboration between our groups and supporting Godrej Fund Management.”

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