Godrej Properties will promote realty projects produced by Godrej & Boyce for management fees

By Bricksnwall | 2024-05-04

Jamshyd Godrej and his sister own Godrej and Boyce, which will control the group's massive land bank, including 3,000 acres of prime Mumbai property.

Jamshyd Godrej and his sister, who own Godrej & Boyce, will handle the group's massive land bank, which includes 3,000 acres of prime Mumbai property, while the other faction, led by Adi Godrej and Nadir Godrej, will sell the real estate projects in exchange for management fees.

On May 1, the owner-developer Godrej & Boyce and the development manager Godrej Properties announced that the two companies would continue their Memorandums of Understanding (MoUs) for the development of Godrej & Boyce-owned land in Vikhroli, Mumbai, as and when the owner intends to develop the said land.

In an interview with PTI following the presentation of its financial results for the fiscal year 2023-24, Godrej Properties Executive Chairperson Pirojsha Godrej stated that the company has been the development manager for the real estate projects and that this arrangement will continue.

Godrej Properties will administer the development, with Godrej & Boyce serving as owners and developers. We will receive development management fees for our participation in marketing the project, which is equivalent to 10% of the project's revenue. Pirojsha said.

He announced the commencement of two projects in Mumbai under the Development Management (DM) model: Godrej Platinum and Godrej Vistas.

There will be many more projects we expect under the DM partnerships, Pirojsha added, declining to disclose the entire land bank or development possibilities in terms of acreage and sales value.

Under the DM model, the developer bears the construction costs.

According to a joint release dated May 1, Godrej Construction, a company of Godrej & Boyce, constructed and finished four stages of Godrej Platinum.a residential development project with a total constructed area of 1 million (10 lakh) square feet, which was marketed by Godrej Properties.

This collaboration resulted in the successful launch of a new property, Godrej Vistas, in March 2024.

The future development of Vikhroli provides a rare opportunity to build a holistic zone in Mumbai's city where urban development and wildlife can coexist.  Godrej Construction and Godrej Properties have complementary qualities, which has resulted in the introduction of successful real estate projects in Vikhroli," Godrej & Boyce Chairperson and Managing Director Jamshyd Godrej stated.

Pirojsha Godrej stated, "We look forward to continuing our collaboration with Godrej & Boyce (G&B) to transform Vikhroli into a world-class neighborhood that provides its people with an exceptional quality of life while adhering to the highest standards of sustainable development.

G&B's 3,000-acre plot in Vikhroli has an estimated development potential of approximately ₹1 lakh crore. It has the capacity to develop 1,000 acres, with around 1,750 acres covered in mangroves and used as a habitat for unique flora and birds. Around 300 acres of land have already been encroached on.

According to the family settlement published late Wednesday, the group has been divided between two branches of the founding family, with Adi Godrej (82) and his brother Nadir (73) on one side and his cousins Jamshyd Godrej (75) and Smita Godrej Crishna (74) on the other.

The Godrej Industries Group, which includes the publicly traded companies Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet, and Astec LifeSciences, will be directed by Nadir Godrej and controlled by Adi, Nadir, and their immediate families.

Source: Hindustan Times