Godrej Fund to sell three BKC floors for Rs 900 crore

Godrej Fund Management, the real estate private equity arm of the illustrious Godrej Group, stands on the cusp of finalizing a substantial transaction. They are poised to sell an impressive 200,000 square feet of office space spanning three floors within the esteemed Godrej BKC commercial project, nestled in the heart of Mumbai's prestigious Bandra-Kurla Complex. The discerning buyer in this high-stakes venture is none other than Max Life Insurance, willing to commit a princely sum of approximately Rs 900 crore for this prestigious acquisition. As the deal inches closer to its conclusion, both entities, Godrej Fund Management and Max Life Insurance, have inked the crucial term sheet that solidifies their commitment.
Simultaneously, an exhaustive due diligence process is underway, ensuring that all facets of the property are meticulously examined before the transaction's finalization. At present, these three meticulously appointed floors are under lease agreements with occupants such as the globally recognized Carlyle Group, the venerable oil refining company Nayara Energy, and the distinguished alternative investment firm Investcorp. These tenants have secured these prime office spaces at an enviable average rental rate of more than Rs 330 per square foot, reflecting the premium nature of this commercial space.
Godrej BKC, a monumental project that spans a substantial 1.3 million square feet, emerged from the collaborative efforts of Godrej Properties and Jet Airways. The aviation stalwart Jet Airways acquired a 2.5-acre land parcel from the Mumbai Metropolitan Region Development Authority (MMRDA) through a public auction, investing nearly Rs 400 crore back in 2006. Subsequently, the developer, Godrej Properties, strategically divested a portion of the commercial tower to the eminent pharmaceutical major, Abbott.
Remarkably, the property in question is presently under strata ownership, with stakes divided among several distinguished entities, including Abbott, the esteemed Brookfield Group, ICICI Pru Life, and the renowned DeDecor Group. This collective ownership adds an additional layer of complexity and prestige to the transaction, with multiple stakeholders involved in the negotiation and sale of this prime real estate asset. Despite the significance and intricacy of this deal, both Godrej Fund Management and Max Life Insurance have maintained a discreet silence in response to email queries from the Economic Times regarding the transaction.
Notably, Godrej Fund Management, through its various investment platforms, has strategically invested in over 15 ventures across its four primary property markets in India. These strategic investments collectively encompass an impressive portfolio of more than 15 million square feet under management. The calibre of these investments has attracted prestigious global institutional investors, with stalwarts like Allianz Real Estate and Dutch pension fund manager APG Asset Management participating as valued partners in the fund's endeavours.
This landmark transaction reflects Godrej Fund Management's unwavering commitment to excellence and its vision to expand its footprint strategically in locations intricately connected to the national capital. The acquisition of these prime office spaces in Mumbai's bustling Bandra-Kurla Complex perfectly aligns with their strategic objectives, and it is poised to make a lasting impact on the city's dynamic real estate landscape.

Next (Dalmia Nisus Finance achieves stellar exit with over 25% IRR from Puranik Builders projects)

Godrej Fund to sell three BKC floors for Rs 900 crore

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