Century Group sells land parcel to Godrej Fund Management
Looking to divest some land parcels to generate liquidity
Godrej Fund Management (GFM), the real estate private equity arm of Godrej Group, has acquired a land parcel in North Bengaluru, Karnataka from Century Group for a consideration of around Rs 700 core.
GFM will develop a 7,00,000 sq-ft commercial project on the new property. This will mark the company's foray in the Bengaluru property market.
Century Group has sold a part of the 2.4 million sq-ft office land and is looking to divest some land parcels and raise equity to generate liquidity.
The investment has been taken up under the Rs 3,200-crore ‘Godrej Build to Core-I’ (GBTC-I) fund. GFM has two funds, $450 million Godrej Build to Core and $150 million Godrej Office Fund. Jointly both the funds can invest and develop office assets worth more than $1 billion in value.
Century Group is in talks with Godrej Fund to monetise 15 acre land parcel in North Bangalore as part of the land monetisation drive. The firm had sold land worth Rs 500 crore in 2019.
Century Real Estate Holdings owns over 2,500 acre of land parcel across Bengaluru. Century Real Estate, the firm with the largest land bank in Bengaluru, is foraying into commercial real estate and is targeting a commercial portfolio of seven million sq ft over the next five years.
Besides, it plans to look at affordable segment development of Rs 50 lakh to Rs 60 lakh bracket and plotted development.