Saturday, 3 October 2015

Godrej Properties sells office space for Rs.1,480 crore

In one of the largest office space transactions, Godrej Properties announced the sale of 4.35 lakh sq.ft in its commercial project at BKC, Mumbai, for about Rs. 1,480 crore.
Although the company did not disclose the name of the buyer, sources said the office space was purchased by pharma company Abbott India.
In a filing to the BSE, Godrej Properties informed that “the company has entered into a transaction for selling 4,35,000 sq ft of saleable area at its commercial project Godrej BKC, in Bandra Kulra Complex (BKC), Mumbai, to a single user for a total consideration of Rs.1,479 crore.
Godrej BKC is a large high-end commercial real estate project with approximately 1.3 million sq ft of saleable area.
Godrej Properties had partnered with Jet Airways to develop this project, which is expected to be completed and ready for occupancy by mid-2016.
“We are very happy to have successfully concluded this large and strategically important deal at our project Godrej BKC. This deal will be an important driver of our plans to unlock capital invested in our commercial portfolio and will hasten the pace of our growth going forward,” Godrej Properties MD & CEO, Pirojsha Godrej, said.

Godrej Properties is developing residential, commercial and township projects spread across 110.30 million square feet in 12 cities.
In May, Mr. Pirojsha Godrej had said that the company is targeting to sell Rs. 2,000 crore worth commercial assets over the next 2-3 years to reduce debt.
The company had a net debt of Rs. 2,764 crore as on March 31, 2015.
Although real estate market is facing a huge slowdown for the last 2-3 years, the office space segment is performing well with increased leasing activities.

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