Godrej Fund Management, the real estate private equity arm of Godrej Group, said on Monday it has hit the first close for two funds that will invest in office properties.
The firm didn’t disclose the levels at which it made the first close but said its total assets under management have now crossed $1 billion. The firm also manages two residential investment funds.
The development comes less than a year after Godrej Properties Ltd, the group’s real estate unit, spun off the fund management business into a separate entity.
The two commercial funds are Godrej Build to Core-I (GBTC-I) and Godrej Office Fund-I (GOF-I). The GBTC-I office development fund has a target corpus of $450 million while the GOF-I office investment fund aims to raise $150 million.
GBTC-I will invest in developing top-grade office buildings at leading locations across the key office markets of India. Dutch investment firm APG Asset Management NV, which had invested in previous funds managed by Godrej Fund Managment, will be the cornerstone investor for GBTC-I.
The GOF-I is a discretionary blind-pool fund that will invest in core and core-plus office and commercial properties across India.
“We believe there is a lot of opportunity for our fund management company in both residential and commercial real estate in India,” said Pirojsha Godrej, chairman, Godrej Investment Advisers.
Karan Bolaria, managing director and chief executive officer, Godrej Investment Advisers, said that the new funds will help the firm diversify into the office asset segment.