APG Asset Management Invests USD 275 Million in Godrej Properties’ GFM

Godrej Properties gets 275 million investment from APG

Godrej Properties has established Godrej Fund Management subsidiary, which has attracted Netherlands based APG Asset Management company as lead investor with US$ 275 million as investments.

Godrej Fund Management will be a dedicated real estate fund management firm functioning in India and Singapore. It will invest in residential real estate projects in India, through Godrej’s GRIP II (Godrej Residential Investment Program II).

APG Asset Management N.V. represents over 30 percent of the collective pension schemes in the Netherlands, making it one of the largest fund management company managing more than 400 Euro billion assets.

It is interesting to see a huge investment from Dutch fund management company in Godrej, when there is a major slowdown in real estate industry of India.

Recently, Knight Frank came out with figures pointing out the piling up of inventories across major cities in India, with worse performing Delhi NCR region.

According to the Knight Frank report, Delhi-NCR accounts for 27% of all unsold inventories in top eight cities with 191,100 units. Overall, there is a 21 percent decline of new launches across all eight cities.

Last year, real estate industry in India witnessed US$ 2.2 billion from foreign private equity investors, who are attracted by 15 percent and 17 percent return for yields in India. More recently, Xander Investment Management has entered in India’s commercial real estate.

Real Estate experts are attributing to such inflows of investments to boost of confidence with introduction of Real Estate Regulatory act. Moreover, the real estate market is distressed, and huge demand for housing by middle class in India, are two important factors that again attracting investments.

Pirojsha Godrej, CEO of Godrej Properties pointed out “This fits well with our strategy of deepening our presence across the country’s leading real estate markets while maintaining a capital light development strategy”. This indicates that Godrej Properties to focus on residential real estate in India.

Meanwhile, Sachin Doshi, APG Asia Pacific Managing Director bullish on positive outlook of residential real estate in India said “In spite of a general slowdown in the asset class in the country over the last 3 years, our partnership projects have sold well, which is a testament to our partner’s execution capability and brand strength.”

Read full Godrej Properties Press Release Here

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