GODREJ PE UNIT ANNOUNCES FIRST CLOSE OF $500 MN OFFICE FUND

Private equity firm Godrej Fund Management (GFM) has raised $250 million in the first tranche for its new platform to develop prime office buildings across four major cities. Singapore-based GFM, a real estate private equity arm of the Godrej Group, on Monday announced the first closure of its $500 million office development platform ‘GBTC II’ in partnership with Netherlands-based APG Asset Management NV (APG).

“We have made first closure of $250 million. The fund will be deployed this calendar year,” GFM MD and CEO Karan Bolaria told PTI. In the first round, APG has invested 80% of the total amount. The first deal from this fund is expected to be finalised before March 31, he said, adding that GFM would mainly focus on four markets—Delhi-NCR, Mumbai, Bengaluru and Pune.

Bolaria said the second tranche of $250 million will be raised and deployed by middle of the next year, he added. Despite fall in leasing activities last year due to the Covid-19 pandemic, he said Indian office market will bounce back and demand will return to its full potential. Bolaria said there is dearth of Grade-A office buildings in India and this fund aims to fill this gap. Under this program, GFM will develop office assets that will be valued in excess of $1.5 billion on completion. The total value of office assets including those from previous funds will take the portfolio value on completion to over $3 billion (around ₹22,000 crore).

GFM has fully invested the previously raised capital under GBTC I ($450 million) and Godrej Office Fund I ($150 million).