Godrej Properties sells 49% stake in its arm to PE fund

Realty firm Godrej Properties Ltd today said it has sold 49% stake in its subsidiary, Godrej Landmark Redevelopers, to private equity firm ASK Property Investment Advisors for a premium of Rs 20 crore.

Godrej Landmark Redevelopers is building a redevelopment project in Mumbai.

Godrej Properties, a part of Godrej Group, has "entered into an agreement with ASK Property Investment Advisors to sell a 49% stake in Godrej Landmark Redevelopers," the company said in a statement.

Godrej Landmark Redevelopers had recently entered into a tripartite agreement with Kamla Landmarc Property Leasing and Finance, and 18 societies to build a residential redevelopment project in Mumbai. The project is spread over about 14,600 sq mt and would offer about 6 lakh sq ft of saleable area.

ASK Group along with Godrej Landmark Redevelopers would invest in the redevelopment project. ASK would pay a Rs 20 crore premium to Godrej Project Development for its 49% stake in the project, the statement said.

The total size of the deal could not be ascertained.

Godrej Project Development is a subsidiary of Godrej Properties and has been formed to do redevelopment project. Godrej Landmark Redevelopers is subsidiary of Godrej Project Development.

"We are very happy to have reached this agreement with ASK Group. This fits in well with our strategy of efficient capital management and demonstrates our continued ability to attract equity capital in difficult market conditions," Godrej Properties Executive Director Pirojsha Godrej said.