Go­drej, Hero Cy­cles to in­vest Rs 1500 crore to build com­mer­cial space in Gu­ru­gram

HT Estates - - FRONT PAGE - Bidya Sa­pam [email protected]

MUM­BAI: The Go­drej group is step­ping into the com­mer­cial real es­tate space in the Na­tional Cap­i­tal Re­gion in a joint ven­ture with Hero Cy­cles Ltd, start­ing with aone-mil­lion sq.ft of­fice and re­tail project.

Lo­cated at Gu­ru­gram’s Golf Course Road, the project will come up at a four- acre plot owned by Pankaj Mun­jal-pro­moted Hero Cy­cles.

It is ex­pected to be com­pleted in the next three years.

Ac­cord­ing to two peo­ple aware of the mat­ter, who spoke un­der con­di­tion of anonymity, the de­vel­op­ment is likely to en­tail a to­tal in­vest­ment of around Rs 1,500 crore.

Spokesper­sons of both the com­pa­nies de­clined to com­ment on in­vest­ment.

AGo­drej­group­state­ment­said Go­drej Prop­er­ties Ltd (GPL) and Go­drej Fund Man­age­ment (GFM) have formed a joint ven­ture with Hero Cy­cles for the project.

While GPLde­vel­op­sprop­erty, GFM is the group’s real es­tate pri­vate eq­uity arm.

The deal marks the en­try of Mum­bai-based Go­drej Prop­er­ties in NCR’s com­mer­cial realty, while help­ing HeroCy­cles mon­e­tise some of its land.

“The com­bi­na­tion of Go­drej Fund Man­age­ment and Go­drej Prop­er­ties com­bines su­pe­rior in­vest­ment man­age­ment ca­pa­bil­i­ties with best-in-class de­vel­op­ment ca­pa­bil­i­ties. We will do our best to en­sure this de­vel­op­ment­be­come­sa­land­markde­vel­op­ment in NCR,” Piro­jsha Go­drej, ex­ec­u­tive chair­man, Go­drej Prop­er­ties and chair­man, Go­drej FundMan­age­ment­saidinthe state­ment.

This is the sec­ond deal GFM has in­vested through its of­fice de­vel­op­ment fund called Go­drej Build to Core (GBTC), Karan Bo­ralia, manag­ing di­rec­tor and chief ex­ec­u­tive of­fi­cer, said Go­drej Fund Man­age­ment.

The fund has a cor­pus of $450 mil­lion, of which 50% has al­ready been utilised so far. Its first in­vest­ment was a com­mer­cial project as a part of a mixed used de­vel­op­ment at Vikhroli in Mum­bai, Bo­ralia said.

“We re­main fo­cused on in­vest­ing in de­vel­op­ment of­fice deals to build long term-term real es­tate mar­kets that have strong fun­da­men­tals,” Bo­ralia said.

Mun­jal said over the phone that Hero will de­velop the land plot along with Go­drej Prop­er­ties into a Grade A of­fice and re­tail space as part of its plan to mon­e­tise land parcels. He de­clined to fur­ther pro­vide de­tails on the in­vest­ment.

De­spite the prop­erty slow­down in NCR, a few real es­tate com­pa­nies have been look­ing to en­ter the mar­ket, both in the res­i­den­tial and com­mer­cial space. Apart from Go­drej Prop­er­ties, builders like Shapoorji Pal­lonji and Kal­pataru Group have re­cently en­tered the re­gion.

THE DEAL MARKS THE EN­TRY OF MUM­BAI­BASED GO­DREJ PROP­ER­TIES IN NCR’S COM­MER­CIAL REALTY SPACE

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