Godrej Properties cancels Rs 700 cr investment plan in DB Realty
Real Estate

Godrej Properties cancels Rs 700 cr investment plan in DB Realty

Godrej Properties Limited (GPL), one of India's leading real estate firms, has decided to cancel its investment plan of Rs 700 crore in DB Realty Limited to acquire a 10% stake in setting up a joint platform.

The company announced that it would invest Rs 400 crore for the acquisition of a 10% stake in DB Realty and Rs 300 crore to set up a joint platform for its slum redevelopment project.

According to the deal, the size of the joint platform between Godrej Properties and DB Realty was Rs 600 crore, Rs 300 crore each.

There was concern with respect to the structure of the plan, the rationale for the investment in DB Realty and the merits of investing through the joint platform.

The Board members have decided not to proceed with further evaluation of a potential investment in the equity capital of DB Realty and the joint platform.

The Board has authorised Godrej Properties to engage with DB Realty and to ensure appropriate and timely dissemination of the information by DG Realty to the stakeholders.

Executive Chairman of Godrej Properties, Pirojsha Godrej, said that the company will invest nearly Rs 400 crore in DB Realty for a 10% stake through the issue of warrants. With this deal, the company plans to enter into a slum redevelopment business.

The Board has approved the evaluation of a potential investment in DB Realty through warrants convertible into equity and setting up a Special Purpose Vehicle (SPV) as a joint venture (JV) with DB Realty to undertake slum rehabilitation and the Maharashtra Housing and Area Development Authority (MHADA) redevelopment projects.

Godrej has its presence across India, including Mumbai, Pune, Bengaluru and Delhi National Capital Region (NCR).

Image Source

Also read: Godrej Properties Q2 results: Net profit increases 403% at Rs 35.72 cr

Godrej Properties Limited (GPL), one of India's leading real estate firms, has decided to cancel its investment plan of Rs 700 crore in DB Realty Limited to acquire a 10% stake in setting up a joint platform. The company announced that it would invest Rs 400 crore for the acquisition of a 10% stake in DB Realty and Rs 300 crore to set up a joint platform for its slum redevelopment project. According to the deal, the size of the joint platform between Godrej Properties and DB Realty was Rs 600 crore, Rs 300 crore each. There was concern with respect to the structure of the plan, the rationale for the investment in DB Realty and the merits of investing through the joint platform. The Board members have decided not to proceed with further evaluation of a potential investment in the equity capital of DB Realty and the joint platform. The Board has authorised Godrej Properties to engage with DB Realty and to ensure appropriate and timely dissemination of the information by DG Realty to the stakeholders. Executive Chairman of Godrej Properties, Pirojsha Godrej, said that the company will invest nearly Rs 400 crore in DB Realty for a 10% stake through the issue of warrants. With this deal, the company plans to enter into a slum redevelopment business. The Board has approved the evaluation of a potential investment in DB Realty through warrants convertible into equity and setting up a Special Purpose Vehicle (SPV) as a joint venture (JV) with DB Realty to undertake slum rehabilitation and the Maharashtra Housing and Area Development Authority (MHADA) redevelopment projects. Godrej has its presence across India, including Mumbai, Pune, Bengaluru and Delhi National Capital Region (NCR). Image Source Also read: Godrej Properties Q2 results: Net profit increases 403% at Rs 35.72 cr

Next Story
Infrastructure Energy

REC Transfers HVDC Project to Power Grid

REC Limited has successfully handed over the Special Purpose Vehicle (SPV) for a High-Voltage Direct Current (HVDC) transmission project to Power Grid Corporation of India Limited (PGCIL). This strategic move aligns with the nation's objectives to strengthen its power transmission network. Key Highlights: Project Overview: The HVDC project, under the inter-state transmission system (ISTS) initiative, is a critical component of India's push toward robust and efficient electricity transmission. It aims to handle bulk power transfer across long distances while ensuring minimal losses. Role of RE..

Next Story
Infrastructure Transport

NF Railway Collaborates with IIT Guwahati

The Northeast Frontier (NF) Railway has signed strategic Memorandums of Understanding (MoUs) with IIT Guwahati to foster technological advancements and improve railway operations in the region. This partnership focuses on innovative solutions to enhance safety, efficiency, and sustainability in rail infrastructure. Key Highlights: Purpose of MoUs: The collaboration aims to leverage IIT Guwahati's expertise in technology and research for implementing cutting-edge solutions across railway operations. Key areas of focus include: Automation and digitization in maintenance. Sustainability initiati..

Next Story
Infrastructure Transport

Danapur Division Modernization Plans Revealed

The Railway Board has unveiled ambitious plans for the expansion and modernization of the Danapur Division, a critical hub under the East Central Railway. The initiative focuses on infrastructure development, enhanced passenger amenities, and operational efficiency. Key Highlights: Scope of Modernization: The Railway Board's blueprint emphasizes: Upgrading existing infrastructure to accommodate more passenger and freight traffic. Improving station facilities, such as platforms, waiting areas, and connectivity. Introducing advanced signal systems for safer and smoother operations. Freig..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000