An office development platform set up by the Godrej Group in a partnership with Dutch pension fund APG Asset Management has struck a land deal just months after raising $250 million for a new investment vehicle.
Mumbai-based Godrej Properties Ltd and Godrej Fund Management (GFM), the real estate private equity arm of the Godrej Group, have acquired a unit of Puravankara Ltd that owns a land parcel in Bengaluru.
Godrej Properties, through wholly owned unit Godrej Projects Development Ltd, and the real estate fund have bought Vagishwari Land Developers Pvt. Ltd for Rs 150 crore, regulatory filings show.
Godrej Projects has taken a 20% stake in Vagishwari while the fund will hold the remaining.
As part of the deal, Vagishwari has bought a land parcel from Puravankara and repaid a loan of Rs 350 crore to the Bengaluru-based real estate developer. The value of the land parcel wasn’t disclosed. However, The Economic Times said the total deal was around Rs 700 crore ($96 million). This would peg the land deal alone at Rs 200 crore.
The development comes after Godrej Fund Management hit the first close of Build to Core-II, a fund that follows a build-to-core strategy for office properties, at $250 million (about Rs 1,830 crore) in January. Its final target is $500 million that it aims to achieve over the next year.
APG Asset Management NV committed $200 million in the fund as the cornerstone investor while Godrej Fund Management put $50 million as its sponsor.
Godrej Fund Management manages five funds—three office vehicles and two for residential investments. APG had anchored both residential funds—the Godrej Residential Programme I and II.
The two previous office funds are the Office Fund-I and Build to Core-I, which manage a total of $600 million. Allianz Real Estate, a unit of German insurer Allianz SE, had invested in the Build to Core-I fund.