Godrej Fund Management buys stake in Bengaluru office project for $120m

Bengaluru, India. Photo by Dinker Gulati on Unsplash.

Godrej Fund Management has acquired stake in an upcoming commercial office project in Bengaluru, which is being developed by Century Real Estate Holdings Pvt Ltd, for around 850 crore, said two people familiar with the development.

The 2.5 million sq ft project in the Hebbal micro-market in the north part of the city is expected to be ready in another three years.

The investment has been made from Godrej Fund Management’s $450 million office investment and development platform. The fund, Godrej Build to Core-1, received commitments of around $150 million from Allianz Real Estate and another $150 million from Dutch investor APF Asset Management.

“Godrej Fund Management gets around 35% of built-up area in the project against its stake acquisition. The capital will be used for constructing the project,” said the first person, requesting not to be named.

Century, which owns a considerably large land bank in Bengaluru, has a residential development portfolio, and now plans to also build commercial office projects.

It has a project development pipeline of around 7 million sq ft over the next 4-5 years. Among the projects planned, is a prime office development on St Mark’s Road, in central Bengaluru, which Century is developing with real estate firm Vaswani Group.

The commercial office market has outperformed the residential sector in the country, and attracted high institutional investor interest. Rentals have risen, there is robust demand for good quality office space and India’s first real estate investment trust (REIT) was launched by Embassy Office Parks earlier this year.

This article was first published on livemint.com

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.