Godrej Fund announced its final close of its $450 million for office development platform.

By Abhay Shah, Realty Quarter

Godrej Properties

Godrej Fund Management (GFM), the Godrej Group’s private equity real estate arm, announced the second and final close of its $450 million office development platform on Tuesday. GFM and the current core Fund, Godrej Build to Core, can now invest over $1 billion in value in/develop office assets.

This development has led to a $1.6 billion mark being passed on to asset class management for GFM. GBTC-I is a ‘club-style’ office platform that invests in developing world-class, grade A office building in the major places throughout the country’s core office markets. Since its foundation in 2018, APG Asset Management has provided $150 million for GBTC-I as its key investor. This platform has now partnered with Allianz Real Estate, which has provided the platform with another $150 million.

Two developments in Mumbai and Gurgaon, accumulating two million square feet in total, have already been secured by the fund. The platform presently has a powerful asset pipeline with the goal of deploying the capital within a timeframe of 12-18 months, said GFM.

“We’re happy to partner with the Allianz Real Estate and APG Asset Management on our office development platform, GBTC-I. The GFM is optimally placed for the opportunity that exists within a Grade-A office in India with its strategic mix of management of investment and development capabilities,” said Karan Bolaria, managing director & CEO, Godrej Fund Management.

Graeme Torre, APG Asset Management Asia’s managing director, said, “The build-to-core strategy that we started with Godrej Fund Management last year had a very successful start with two first-class acquisitions and a strong pipeline of future opportunities. We are pleased to have Allianz Real Estate join the partnership now and look forward to seeing the portfolio expanded further to provide future opportunities to the premium office sector.”

“We continue to think in the Indian economy’s long-term development opportunities. Strong demographics trends and enhanced transparency support both real estate occupants and investor demand, especially the office industry, which is perfect for long-term institutional investors like Allianz,” said Rushabh Desai, Asia-Pacific CEO of Allianz Real Estate. “We’re enthusiastic about this fresh partnership. Godrej is one of India’s most trusted brands with a good track record in office. We’re convinced that the platform will offer a premium office product that multinational customers in India are increasingly looking for,” Desai said.

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