Godrej Properties announces redevelopment project

Godrej Properties Limited (GPL) (BSE scrip id: GODREJPRP), the real estate development arm of the Godrej Group, has, through its wholly owned subsidiary Godrej Projects Development Private Limited (GPDPL), entered into a Development Management Agreement with R.R. Builders to redevelop a MHADA property in Byculla, Mumbai. GPDPL will act as development manager and will be responsible for the conceptualization, design, sales, and marketing of the project in Byculla, Mumbai. The project, spread over approximately 2.5 acres, will offer approximately 300,000 sq. ft of free saleable area and is proposed to be developed as a modern group housing residential development comprising 2, 3, and 4 BHK apartments.  The site is situated close to the 48 acres of sprawling greens of the Jijamata Udyan and will offer views of both the eastern and western waterfronts and the panoramic cityscape of Mumbai City. For its services as Development Manager, GPDPL shall be entitled to a Development Management Fee of Rs. 50 crores from R.R. Builders over the duration of the project. Over and above the Development Management Fee, GPDPL will also receive part of the revenue as a promote beyond certain defined selling prices. The entire costs for design, construction, and development of the project will be borne by R.R.Builders in its role as owner-developer, while the cost for sales and marketing will be borne by Godrej Properties in its role as development manager. Mr. Pirojsha Godrej, Managing Director & CEO, Godrej Properties said, “We are happy to announce a redevelopment project in Byculla under the development management model. The development management model will allow Godrej Properties to benefit from this development with very limited risk.  We will seek to ensure this becomes one of Mumbai's best residential developments.”

source: http://www.moneycontrol.com/news/business/godrej-properties-announces-redevelopment-project_692360.html