Godrej Fund Management Achieves Final Close of $500 Million Desktop Fund

Godrej Fund Management, the real estate private equity arm of Godrej Group, has raised $500 million in the final close of its $500 million office development fund, GBTC II. The fund counts APG Asset Management and Allianz Real Estate as the platform’s main investors.

Godrej Fund Management will develop Class A office assets which will be valued at over $1.5 billion or almost Rs 11,000 crore when completed. The total value of assets, including those of previous funds, will bring the value of the portfolio when completed to over $3 billion, or nearly Rs 22,000 crore.

With the final closing, Godrej Fund Management has now raised 3 desktop-focused funds and 5 global funds. Currently, it manages over $1.6 billion of capital across these five funds. The private equity fund fully invested capital previously raised under GBTC I and Godrej Office Fund I.

“Godrej Fund Management has a deep belief in investing and developing high-end office properties in prime locations in our target markets to responsibly achieve the best risk-adjusted returns for our partners,” said Karan Bolaria, Managing Director and CEO of Godrej Fund Management.

In a club-style office investment strategy, Godrej Fund Management has again partnered with APG Asset Management NV and Allianz Real Estate to develop office properties in prime locations across India’s major office markets.

“The office sector in India has remained resilient throughout the Covid19 pandemic and we continue to believe in the long-term fundamentals of the Indian economy, supported by strong demographic trends and growing occupier demands. Our first venture with Godrej worked well and we are excited to expand our partnership with them. We are confident that this new venture will continue to deliver premium office products in India,” said Rushabh Desai, CEO Asia Pacific, Allianz Real Estate.

The private equity fund has already invested in a development asset in Bangalore with a development potential of 1.1 million square feet under this fund.

“The international market for Class A offices in India remains a strategic focus for our portfolio in the region. We are delighted that Allianz is once again joining APG and Godrej to create a truly unique collection of market-leading assets in prime locations,” said Graeme Torre, MD, APG Asset Management Asia. “Sustainability is a key part of this strategy and we are committed to decarbonizing our portfolios and investing in energy efficient buildings on behalf of our retired customers.”

Godrej Fund Management is committed to placing particular emphasis on achieving the highest standards of environmental efficiency when developing assets.

According to Bolaria, the strong commitment to environmental stewardship supported by the Godrej Group is reinforced by the fund in its office development program through its commitment to developing projects in line with the Carbon Risk Real Estate Monitor’s decarbonization pathway ( CRREM Pathway), which is a first in the Indian real estate industry.

Jose C. Birney