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Godrej realty PE arm hits final close of $450 million fund

Our Bureau Mumbai | Updated on August 13, 2019 Published on August 13, 2019

Godrej said the platform currently has a strong pipeline of assets with an aim to fully deploy the capital within the next 12-18 months

Godrej Fund Management, the real estate private equity arm of the Godrej Group, on Tuesday announced the second and final close of its $450 million office development platform.

Across Godrej Build to Core – I (GBTC-I) and the existing core fund, GFM can now invest in/develop office assets worth over $1 billion in value, Godrej said in a statement.

With this development, the assets under management for GFM have crossed the $1.6-billion mark across asset classes. GBTC-I is a ‘club style’ office investment platform that targets developing Grade-A office buildings in Tier 1 cities. It has already secured two developments, one each in Mumbai and Gurugram, totalling 2 million sq ft.

APG Asset Management was the cornerstone investor for GBTC-I since its inception in 2018, committing $150 million. The platform has now partnered with Allianz Real Estate, which has committed another $150 million to the platform. This is the second and final close for GBTC-I, taking it to the full potential of $450 million.

Godrej said the platform currently has a strong pipeline of assets with an aim to fully deploy the capital within the next 12-18 months.

Karan Bolaria, Managing Director & CEO, GFM, said, “GFM, with its strategic combination of investment management and development management capabilities, is ideally positioned to deliver on the opportunity that exists in Grade-A office in India.”

Graeme Torre, Managing Director, APG Asset Management Asia, said, “We are delighted to have Allianz Real Estate now join the partnership and look forward to seeing the portfolio further extended to provide exposure to India’s premium office sector.”

“Strong demographic trends and improving transparency are supporting real estate occupier as well as investor demand, in particular the office sector,” said Rushabh Desai, Asia-Pacific CEO of Allianz Real Estate.

Published on August 13, 2019
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