Infrastructure

Godrej Fund Management achieves first close of $500 mn office development fund

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BENGALURU: Godrej Fund Management (GFM), the real estate private equity arm of Godrej Group, has raised $250 million, marking the first close of its new $500 million office development platform GBTC II.

GBTC II is in partnership with Netherlands-based APG Asset Management N.V. (“APG”), the cornerstone investor in the platform.

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GFM will develop Class-A office assets, valued in excess of $1.5 billion on completion and the total value of office assets including those from previous funds will take the portfolio value on conclusion to over $3 billion.

GFM has fully invested the previously raised capital under GBTC I and Godrej Office Fund I.

GBTC is a ‘club-style’ office investment strategy that invests in developing world class office buildings in prime locations across leading office markets in India. The platform has a strong investment pipeline and aims to deploy the newly raised capital within 12 months.

This is the third India-focused office venture and fifth overall, sponsored by GFM.

“We are pleased to partner with APG on our second build to core platform. Our Group has strong conviction in India’s premium office sector and we believe the current dislocation in markets provides attractive capital deployment opportunities,” Karan Bolaria, managing director and, Godrej Fund Management.

Mint had reported in September that GFM is looking to raise a $500 million fund by early 2021 to invest in office properties and is in talks with global investors.

Godrej’s move comes at a time when India’s commercial office market has suffered a blip because of the pandemic, but continues to attract long-term investor interest.

Graeme Torre, managing director, APG Asset Management Asia, said, “…The build-to-core strategy for Indian offices aligns very well with our broader investment aspirations for our pension fund clients and our desire to invest alongside partners who offer best-in-class execution capabilities.”

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