Godrej Properties joins hands with APG to set up $275-million fund
Realty firm Godrej Properties Ltd (GPL) has created a dedicated real estate funds management business in India and Singapore – Godrej Fund Management (GFM). GFM has raised a USD 275 million ( Rs 19 billion) pool of capital, Godrej Residential Investment Program II (GRIP II) with Dutch pension fund asset manager APG Asset Management N.V. (APG) as the lead investor.
GFM will advise GRIP II investors on investments into a residential development platform with GPL in India. GRIP II is a follow on to the USD 200 million residential development platform GPL had set up with an APG led investor consortium in 2012. GPL 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 will undertake.
APG and GPL pioneered the joint venture approach in the Indian private real estate market in 2012 with GRIP I, a structure that has been followed by other foreign institutional investors and Indian developers since.
Pirojsha Godrej, Managing Director & CEO, Godrej Properties said, “I am delighted to announce the establishment of Godrej Fund Management. 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.”
Sachin Doshi, Managing Director and Head of Private Real Estate Investments, Asia Pacific at APG, said “We are pleased to expand our relationship with Godrej Properties.
Our strategy of partnering with only the best local operators has allowed us to succeed in a complex market like residential development in India. In spite of a general slowdown in the asset class in the country over the last 3 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.