BENGALURU :
Godrej Properties Ltd (GPL) on Thursday said it is planning to invest ₹400 crore in Mumbai-based real estate firm DB Realty Ltd, to acquire around 10% stake through the issue of warrants.
According to a regulatory filing, the GPL board granted its approval to evaluate a potential investment in DB Realty in the form of warrants convertible into equity shares and the setting up of a special purpose vehicle as a joint venture with DB Realty to undertake slum rehabilitation and Maharashtra Housing and Area Development Authority redevelopment projects in Mumbai.
GPL and DB Realty will also set up a ₹600 crore equal partnership vehicle focused on redevelopment opportunities in the city.
GPL and DB Realty will invest ₹300 crore each in the joint platform, which will take the former’s total investment up to ₹700 crore.
From the ₹400 crore that GPL will invest in DB Realty, the latter will invest ₹300 back into the redevelopment platform.
The equity platform will act as a strategic special purpose vehicle providing GPL with Right of First Refusal or ROFR for all slum rehabilitation and MHADA redevelopment projects to be identified by DB Realty across Mumbai, under a 50:50 equity partnership with 10% development management fees to GPL.
“The partnership will allow us to explore big opportunities in the redevelopment space in Mumbai. While DB will be look at business development and preparing the projects sites for approvals,…
