Listed realty major Godrej Properties Ltd (GPL) has added a new residential project in Bangalore under its investment and development platform with Dutch pension fund APG Asset Management NV, the company said in a stock market disclosure.
This is the fourth project of the developer under the APG anchored platform and second in Bangalore this year.
Spread across 18 acres, the project is located off Kanakapura Road and will be developed as a mid-income housing project under special purpose vehicle Godrej Home Constructions Pvt Ltd.
Godrej has bought the land parcel for the project from city based developer Purvankara Projects Ltd. In a separate market disclosure, Purvankara said it has entered into an agreement to sell 18 acre property located in Bangalore.
“This is a strategic transaction and coincides with our business and capital strategy of the group,” it said in the disclosure.
“We are happy to add this new project in Bangalore, one of the leading markets in the country and is an important growth region for Godrej Properties,” said Pirojsha Godrej, managing director and chief executive officer, Godrej Properties.
The developer had forged a partnership with the APG-led consortium three years ago for investment and development of residential real estate. For the platform, Godrej Properties secured commitments of Rs 770 crore ($138 million) from a group of foreign investors, led by Dutch pension fund manager APG and also including asset management firm Sparinvest Property Investors, for a residential property development platform. The investors acquired 71 per cent stake in the joint venture while Godrej Properties owns the rest.
Last year, APG formed a separate joint investment platform with emerging markets investment firm The Xander Group Inc with a corpus of $300 million for income generating commercial assets.
The portfolio of Godrej Properties is spread across 10.25 million square metres in 12 cities.
Shares of GPL were trading at Rs 253.50, up 1.20 per cent on BSE in a weak Mumbai market on Tuesday at 3.29 PM.