NEW DELHI: Godrej Fund Management (“GFM”), the real estate private equity arm of the Godrej Group, announces the final close of its USD 500 million office development fund, GBTC II.
GFM will develop grade-A office assets that will be valued in excess of USD 1.5 billion (~INR 11,000 crore) on completion and the total value of the assets including those from previous funds will take the portfolio value on completion to over USD 3 billion (~INR 22,000 crore). GFM has fully invested the previously raised capital under GBTC I and Godrej Office Fund I.
In a ‘club-style’ office investment strategy, GFM has again partnered with APG Asset Management N.V. (APG) and Allianz Real Estate (Allianz) to develop world class office buildings in prime locations across the leading office markets in India. GFM has already invested in one development asset in Bangalore with development potential of 1.1 million square feet under this fund.
With the final close, GFM has now successfully raised 3 office focused funds and 5 overall funds. GFM is committed to have a special focus on attaining the highest environmental efficiency standards in developing these assets.
Karan Bolaria, Managing Director & CEO, Godrej Fund Management, said, “GFM have deep conviction in investing in and developing premium office buildings in prime locations across our focus markets to responsibly achieve the best risk adjusted returns for our partners. The strong commitment to environmental stewardship upheld by the Godrej Group is furthered by GFM in our office development program through our commitment to develop projects in compliance with the Carbon Risk Real Estate Monitor decarbonization pathway (CRREM Pathway), which is a first in the Indian real estate industry.”
Rushabh Desai, Asia-Pacific CEO of Allianz Real Estate, said, “The India office sector has remained resilient throughout the COVID-19 pandemic and we continue to believe in the long-term fundamentals of the Indian economy supported by strong demographic trends and growing occupier demands. Our first venture with Godrej has performed well and we are excited about growing our partnership with them. We are confident that this new venture will continue to deliver premium office products in India.”
“The international Grade A office market in India remains a strategic focus for our portfolio in the region. We are delighted that Allianz will once again join APG and Godrej to create a truly unique collection of market-leading assets in prime locations.”, said, Graeme Torre, Managing Director of APG Asset Management Asia. “Sustainability is a key component of this strategy and we are committed to decarbonizing our portfolios and investing in energy efficient buildings on behalf of our pension clients.”