Godrej Fund set to sell 3 floors in BKC project for Rs 900 crore

Godrej Fund Management, the real estate private equity firm of Godrej Group, is close to selling office space spread across three floors in commercial project Godrej BKC in Mumbai's Bandra-Kurla Complex to Max Life Insurance for around '900 crore, said people with direct knowledge of the development.

The deal for nearly 200,000 sq ft office space is expected to be concluded soon as both the entities have inked the term sheet and the due diligence for the property is in process. These three floors are currently leased to entities including global financial major Carlyle Group, oil refining company Nayara Energy and alternative investment firm Investcorp at an average lease rental of over '330 per sq ft.

"The fund had invited bids for the asset earlier this year and the deal is likely to be concluded in the next couple of months," said one of the persons mentioned earlier.

Godrej BKC, spread over a total 1.3 million sq ft, was developed by Godrej Properties along with Jet Airways. The aviation company had acquired the 2.5-acre land parcel from Mumbai Metropolitan Region Development Authority (MMRDA) in a public auction for nearly '400 crore in 2006.

The developer later sold the part of the commercial tower to pharmaceutical major Abbott. The office building is currently strata-owned by Abbott, Brookfield Group, ICICI Pru Life and DeDecor Group.

ET's email query to Godrej Fund Management and Max Life Insurance remained unanswered until the time of going to press.

Through five investment platforms, the fund has made over 15 investments across its four key property markets of India and has over 15 million sq ft space under management.

The fund counts global institutional investors like Allianz Real Estate and Dutch pension fund manager APG Asset Managements among its partners.