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Wednesday, July 24, 2024

Godrej Fund Plans to Offload Three Floors in BKC Project

Godrej Fund Management, the real estate private equity arm of the Godrej Group, is nearing the sale of office space spanning three floors within the Godrej BKC commercial project situated in Mumbai’s Bandra-Kurla Complex. The prospective buyer is Max Life Insurance, and the deal is estimated to be valued at approximately ₹900 crore, according to individuals familiar with the matter.

The transaction, covering nearly 200,000 square feet of office space, is anticipated to conclude shortly as both parties have executed the term sheet, and property due diligence is presently underway. These three floors are currently leased to various entities, including global financial giant Carlyle Group, oil refining firm Nayara Energy, and alternative investment firm Investcorp, all at an average lease rate exceeding ₹330 per square foot.

One of the individuals mentioned earlier remarked, “The fund had solicited bids for the asset earlier this year, and the deal is expected to be finalized in the next couple of months.”

Godrej BKC, encompassing a total of 1.3 million square feet, was developed by Godrej Properties in partnership with Jet Airways. The aviation company had acquired the 2.5-acre land parcel from the Mumbai Metropolitan Region Development Authority (MMRDA) through a public auction for nearly ₹400 crore back in 2006.

Subsequently, the developer sold a portion of the commercial tower to pharmaceutical major Abbott. Presently, the office building is under strata ownership, with Abbott, Brookfield Group, ICICI Pru Life, and DeDecor Group as key stakeholders.

Through its five investment platforms, the fund has made more than 15 investments across its four primary property markets in India and manages over 15 million square feet of space. Global institutional investors such as Allianz Real Estate and Dutch pension fund manager APG Asset Management are among the fund’s partners.

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