Godrej Properties approves potential investment in DB Realty

4 Feb 2022 , 09:50 AM

Godrej Properties Limited’s (GPL) board has approved a potential investment in DB Realty Limited (DBR) and the establishment of a Special Purpose Vehicle (SPV) in association with DBR to jointly undertake slum rehabilitation and MHADA redevelopment projects. GPL will make an investment worth Rs 400 crore in warrants convertible into equity shares aggregating to approximately 10% of the issued and paid-up capital of DBR Ltd. Both the companies also pledged to contribute up to Rs 300 crore each towards the equity platform focusing on redevelopment opportunities in Mumbai.

The stated equity platform will act as a strategic special purpose vehicle conferring GPL with Right of First Refusal (ROFR) for all slum rehabilitation and MHADA redevelopment projects which shall be identified by DB Realty all over Mumbai under a 50:50 equity partnership with 10% development management fees to GPL. This way, GPL will have access to a large number of MHADA redevelopment and slum rehabilitation projects in MMR.

Commenting on the partnership, Mohit Malhotra, MD & CEO, Godrej Properties said that the company is pleased to announce a strategic partnership with DB Realty entailing a strong growth platform for GPL in Mumbai. GPL believes that this partnership will allow both the companies to utilize their strengths to elevate the quantum of successful slum rehabilitation and MHADA redevelopment projects in the city, thereby helping economically weaker sections of the society while contributing to Mumbai’s growth as the financial capital of India.

Godrej Properties is currently trading at Rs1,568.70 down by Rs100.55 or 6.02% from its previous closing of Rs1,669.25 on the BSE. The scrip opened at Rs1,511 and has touched an intraday high and low of Rs1,574.90 and Rs1,502.35 respectively.