Godrej Fund Management, the real estate private equity arm of the Godrej Group, has hit the first close of its $500 million (about Rs 3,660 crore) office development fund, the company said in a statement.

The fund — GBTC II — has raised $200 million (Rs 1,465 crore) from Netherlands-based APG Asset Management NV, which is a cornerstone investor for the vehicle.

“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 that offer best-in-class execution capabilities,” said Graeme Torre, managing director, APG Asset Management Asia.

Godrej Fund Management has put $50 million (Rs 366 crore) in the vehicle as sponsor.

The first close, recorded at $250 million (about Rs 1,830 crore), is a fundraising milestone after which a vehicle deploys money for investments.

The fund aims to hit the final close in the next 12-14 months.

This is the fifth fund in Godrej Fund Management’s kitty. The real estate private equity arm of the Godrej Group now manages three office and two residential funds.

Office Fund-I and Build to Core-I, the first two commercial funds of Godrej Fund Management, collectively manage $600 million.

Back in 2019, Godrej Fund Management had roped in Allianz Real Estate, the property investment arm of Germany’s biggest insurer Allianz SE, to close its Build to Core-I fund.

The two residential real estate funds – Godrej Residential Programme I (GRIP I) and GRIP II – were anchored by APG, a long-term partner of Godrej Properties.

APG, which has backed a bunch of funds in India, is a repeat partner for Godrej Fund Management.

Godrej Properties set up its maiden platform of $200 million back in 2012. In 2016, it set up its second platform of $275 million. Subsequently, Godrej Properties spun off the realty investment arm.

The development comes at a time when a bunch of fund managers are swinging into action after a lull of 8-9 months due to Covid-related disruption.

Recently, Motilal Oswal Real Estate, the real estate investment arm of Motilal Oswal Group, launched a fund with a target corpus of Rs 800 crore.


Source: VC Circle

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