Godrej Properties to buy back stakes from Motilal Oswal Advisors
Mumbai based developer, Godrej Properties announced its decision to buy back its 49.90 % stake in the subsidiary Godrej Buildwell Private Ltd, a company that has Motilal Oswal Advisors –managed India Realty Excellence Fund as its Private Equity Investor. This announcement was made on Wednesday; the transaction value for the deal remained undisclosed.
In 2009, the India Realty Excellence Fund was launched with a corpus of Rs.200 crore which was used to make a total of 7 investments including the Bangalore Project of Godrej Properties known under the name of Godrej Platinum. The subsidiary which has a 49.9% stake with the Motilal Oswal Advisors has now been decided to be bought back at an undisclosed amount by Godrej Properties, as was announced.
Motilal Oswal Advisors are currently managing the 2 funds of India Business Excellence (IBEF) and India Realty Excellence (IREF).
The Private Equity Investor’s domestic Fund – India Realty Excellence followed the strategy of investing in mid-income or affordably priced residential and re-development projects that were backed by well-established and mid-sized developers in different parts of the Metro cities across India. The average investment ticket for each project was estimated to be worth Rs.20-30 crores.
However, the Godrej Platinum, one of the current projects of Godrej Properties in Bangalore, received received investments worth Rs.40-50 crores.
This project shall be a high-end residential project developed in the Hebbal area of Bangalore. The area alongside Hebbal and Devanahalli is considered as the ‘Golden Corridor’ and is expected to become the next IT hub. The easy access to the six-lane Golden Quadrilateral Highway is expected to provide excellent connectivity to the International Airport and the City.
In the second quartile of Fiscal year 2015 results, a net profit of Rs.46.6 crore was reported by Godrej Properties that has been estimated to be a 36 percent rise over a period of one year. The sales volumes were estimated to shoot up by almost 177 per cent. In the second quarter, seven projects were launched and similar number of launches is being planned for the third quarter as well. The third quarter investment is planned at an estimated value of Rs.5 crore.
Source: VC Circle
Godrej Garden City, Godrej Group, Godrej Properties, India Business Excellence, India Realty Excellence
