Godrej Properties Ltd, part of the $2.5-billion diversified group, is selling a 49.9% stake in its upcoming development in Bangalore to Motilal Oswal Private Equity for a consideration of Rs 50 crore. The real estate firm, which listed in December last year, will sell the stake in a newly formed subsidiary Godrej Buildwell Pvt Ltd in two tranches. The first tranche will be for an investment of Rs 45 crore with the remaining Rs 5 crore coming in later.
The subsidiary is developing a project in Hebbal suburb of Bangalore. Further details about the project could not be ascertained.
The investment is through Motilal Oswal PE's India Realty Excellence Fund and others acting through it, said Godrej Properties in a statement to the exchanges. India Realty Excellence Fund is a Rs 165-crore fund and looks at deal s of Rs 25 crore to Rs 75 crore range.
Godrej Properties has raised funding for several other of its upcoming projects in the last one year. Godrej raised Rs 110 crore from Milestone Capital for its residential project in Kolkata in Oct '09 and from HDFC Asset Management for projects in Tamil Nadu and Mumbai earlier this year.
In August, Godrej Properties said it is looking to raise another Rs 500-1,000 crore in the next two years at the entity level. The firm raised Rs 469 crore through its maiden offering in December last year to finance existing projects.