Mumbai-based realtor Godrej Properties Ltd has bought out Red Fort Capital's stake in one of its projects in Kolkata. The listed realtor said it is buying stake held by Red Fort India Real Estate Babur (Red Fort) in its Kolkata-based project called Godrej Genesis.
The developer has given exit to Red Fort by purchasing its 49 per cent stake in the equity share capital of its subsidiary Godrej Developers Pvt Ltd (GDPL); with this GDPL has become wholly owned subsidiary of the company.
Godrej Genesis is an Information Technology Park development in the central business district of Kolkata called Salt Lake with a developable area of close to 1 million sq ft. It has another IT park development in the same location called Godrej Waterside.
In July 2008, Red Fort Capital had acquired the stake and was expecting sales of over Rs 750 crore from the project once it is fully operational. The exit details have not been disclosed by both the fund and the realty firm. The realty developer has total exposure of 6.93 million sq ft in Kolkata.
In a recent conference call, Pirojsha Godrej, managing director, Godrej Properties, had said that the developer has finished constructing only 5 lakh sq ft and the rest is yet to be completed. It has finished construction on its Waterside project.
The realtor has been consolidating stakes in various projects this year. In July this year, it had given exit to HDFC PMS for its projects in Chandigarh and Chennai. HDFC PMS had invested a total of Rs 100 crore in the project. The developer had earlier bought out PE partners from its Waterside project and the Chandigarh development.
In September this year, Godrej Properties raised Rs 700 crore through a rights issue.
Godrej Properties is developing residential, commercial and township projects spread across 8 million square meters (87.6 million sq ft) in 12 cities.
In the call, Pirojsha Godrej had also said, “Our focus is entirely on markets where we already have a presence and within that, the biggest opportunity is in Mumbai, Bangalore, NCR, etc. We are also looking at new projects in places like Pune, Chennai, etc.”
(Edited by Joby Puthuparampil Johnson)