Rs 700 Crore worth of land bought by Godrej FM from Century Group

 BENGALURU: A deal worth Rs 700 Crore between Godrej and Century Group took place. The real estate focused private equity arm of Godrej Group i.e. Godrej Fund Management (GFM) bought a land parcel in north Bangalore. 

Godrej FM on this new land area would develop a new commercial property of 700,000 Sq.ft that will shake the Bangalore’s property market.

 

 “Century has sold a part of the 2.4 mn Sq. ft office land and is looking to divest some land parcels and raise equity to generate liquidity,” said people aware of the deal.

Under the Rs 3,200-crore Godrej Build to Core-I’ (GBTC-I) fund this investment has been undertaken.

GFM has two funds—$450 million Godrej Build to Core and a $150 million Godrej Office Fund. Jointly if both the funds are invested they can develop office assets valuing over $1 billion.

“Century is in talks with Godrej Fund to monetise 15 acre land in North Bangalore as part of the land monetisation drive. The firm had sold land worth Rs 500 crore last year,” said another person, who did not wish to be named.

More than 2,500 acres of land parcel across Bengaluru is owned by Century Real Estate Holdings. Century Real Estate has the largest land bank in Bengaluru is targeting commercial real estate. And will be developing a commercial portfolio of 7 million sq ft over the next five years.

Besides, it plans to look at affordable segment development (Rs 50-60 lakh bracket) and plotted development.