Godrej Properties board approves plan to invest Rs 400 cr in DB Realty

Real estate firm Godrej Properties board on Thursday approved the company's plans to invest Rs 400 crore to acquire around 10 per cent stake in DB Realty in the form of warrants convertible into equity shares.

Mumbai-based Godrej Properties and DB realty will each contribute an additional 300 crore towards the equity platform focused on redevelopment opportunities in Mumbai, it said in a statement.

According to a regulatory filing, the board granted its approval to evaluate a potential investment in DB Realty Ltd in the form of warrants convertible into equity shares and the setting up of a special purpose vehicle as a joint venture with DB Realty to undertake slum rehabilitation and MHADA (Maharashtra Housing and Area Development Authority) redevelopment projects.

The equity platform will act as a strategic special purpose vehicle providing GPL with ROFR (Right of First Refusal) for all slum rehabilitation and MHADA redevelopment projects to be identified by DB across Mumbai under a 50:50 equity partnership with 10 per cent development management fees to GPL. 

Mohit Malhotra, MD & CEO, Godrej Properties said,“We are pleased to announce a strategic partnership with DB Realty, which will give GPL a strong platform for growth in Mumbai. We believe this strategic partnership will allow each company to utilize its complementary strengths to boost the amount of successful slum rehabilitation and MHADA redevelopment projects in the city thereby benefiting economically weaker sections of the population while contributing to the growth of Mumbai as the country’s financial capital.”

Godrej Properties has a major presence in Mumbai region, Pune, Bengaluru and Delhi-NCR.