Godrej Fund Management (GFM), the real estate private equity arm of the Godrej Group, on Monday announced the first close of its $500 million office development platform, GBTC II in partnership with Netherlands-based APG Asset Management, the cornerstone investor in the platform.
Under this program, GFM will have the ability to develop Class-A office assets that will be valued in excess of $1.5 billion on completion, and the total value of office assets including those from previous funds will take the portfolio value on completion to over $3 billion. GFM has fully invested the previously raised capital under GBTC I and Godrej Office Fund I.
GBTC is a ‘club-style’ office investment strategy that invests in developing world-class office buildings in prime locations across the leading office markets in India. The platform currently has a strong investment pipeline and aims to deploy the newly raised capital within 12 months.
This is the third India focused office venture and fifth overall, sponsored by GFM.
Karan Bolaria, managing director & CEO, Godrej Fund Management, said, “We are pleased to partner with APG on our second build to the core platform. Our group has a strong conviction in India’s premium office sector and we believe the current dislocation in markets provides attractive capital deployment opportunities. The addition of this platform brings significant scale to our overall strategy and will open up strategic avenues for value maximization in the future.”
Graeme Torre, Managing Director, APG Asset Management Asia, said, “We are looking forward to another successful partnership with Godrej. 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 who offer best-in-class execution capabilities.”