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Mumbai-based developer Godrej Properties has bought back a 49 per cent stake from HDFC PMS in the real estate company’s two projects in Chennai and Chandigarh for an undisclosed amount.
The company exercised a buyout option under its agreement with HDFC Asset Management Company.
According to the developer’s filing with the BSE, it has given an exit to HDFC PMS by purchasing its 49 per cent stake in the equity share capital of its subsidiary, Godrej Estate Developers Pvt Ltd for the project Godrej Eternia in Chandigarh.
Similarly, for the project Godrej Palm Grove in Chennai, the company has given exit to HDFC PMS by purchasing its 49.9 per cent stake in the equity share capital of its subsidiary, Godrej Sea View Properties Pvt Ltd. While the Chennai project is residential, the Chandigarh project is commercial.
Wholly-owned units
Following this deal the Chandigarh and Chennai units have become wholly-owned subsidiaries of Godrej Properties with effect from June 28, 2013 and July 01, 2013, respectively.
According to Godrej Properties, HDFC PMS had initially invested about Rs 100 crore in both the projects in 2010.
A Godrej Properties spokesperson said: “Looking at low cash flow levels in our commercial project, we took the buyout call so as to curtail a possible loss of returns in the future.” The Godrej Properties stock closed at Rs 535.95 on Monday, up 0.88 per cent from its previous close on the BSE.
manisha.jha@thehindu.co.in
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