Godrej Properties’ Board approves potential investment in DB Realty
The Mumbai based developers will create a strategic platform to develop redevelopment projects in Mumbai
cityairnews
Feb 3, 2022 08:08
0
Mumbai, February 3, 2022: The Board of Godrej Properties Ltd. (GPL), today approved a potential investment in DB Realty Limited (DBR) and also the setting up of a special purpose vehicle along with DBR to jointly undertake slum rehabilitation and MHADA redevelopment projects. GPL will subscribe to warrants convertible into Equity Shares aggregating to approximately 10% of the issued and paid-up capital of DBR for an aggregate amount of approximately Rs 400 crore. GPL and DBR will each contribute an additional 300 crore towards the equity platform focused on redevelopment opportunities in Mumbai.
The equity platform will act as a strategic special purpose vehicle providing GPL with ROFR (Right of First Refusal) for all slum rehabilitation and MHADA redevelopment projects to be identified by DB across Mumbai under a 50:50 equity partnership with 10% development management fees to GPL. This will provide GPL access to a large number of slum rehabilitation and MHADA redevelopment projects in MMR.
Mr. Mohit Malhotra, MD & CEO, Godrej Properties said, “We are pleased to announce a strategic partnership with DB Realty, which will give GPL a strong platform for growth in Mumbai. We believe this strategic partnership will allow each company to utilize its complementary strengths to boost the amount of successful slum rehabilitation and MHADA redevelopment projects in the city thereby benefiting economically weaker sections of the population while contributing to the growth of Mumbai as the country’s financial capital.”
