Godrej Fund Management achieves final close of $500m office fund

Dec 16, 2021 | News

Godrej Fund Management (GFM), the real estate private equity arm of Godrej Group, on Wednesday said it has achieved the final close of its $500m office development fund GBTC II.

APG Asset Management N.V. and Allianz Real Estate, which have invested in GFM previously also, joined the fund-raising in what it called a ‘club-style’ office investment strategy. The fund will develop office buildings in prime locations across the top office markets in the country.

GFM said it will develop Grade-A office assets that will be valued at over $1.5 billion on completion. Total value of the assets including those from previous funds will take the portfolio value, on completion, to over $3 billion. “GFM has 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,” said Karan Bolaria, managing director and chief executive officer (CEO), GFM. GFM has fully invested the previously raised capital under GBTC I and Godrej Office Fund I.

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GFM has already invested in one development asset in Bengaluru with development potential of 1.1 million square feet under this fund.

With the final close, it has now raised three office-focused funds and five overall funds.

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.

Source: Mint

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