Godrej Properties, one of India’s fastest growing and most profitable real estate companies, said it has got the approval of its board of directors to explore the possibility of acquiring a stake in rival and listed real estate developer DB Realty.
“..the Board of Directors of the Company has at its meeting held today, i.e. February 03, 2022, granted its approval to evaluate a potential investment in DB Realty Limited in the form of warrants convertible into Equity Shares..” the company said.
It noted that the proposal would need approval by shareholders, regulatory bodies and of course, DB Realty.
The quantum of the investment or the size of the stake was not disclosed.
In addition, Godrej Properties said it will also explore the creation of “a special purpose vehicle” in the form of a joint venture with DB Realty Limited.
This JV will undertake slum rehabilitation and redevelopment projects on behalf of Maharashtra Housing & Area Development Authority or MHADA.
There haven been past media reports that the two were planning to undertake joint redevelopment of MHADA apartments.
Godrej Properties, a part of the Godrej group of businesses based in Vikhroli, Mumbai, has been one of the few large real estate players to thrive even during the downturn that gripped the Indian real estate market in recent years.
Leveraging its strong balance sheet and cash flows, the company snapped up land parcels and projects from real estate companies that were struggling to deal with the downturn, and has emerged as arguably India’s fastest growing large developer today.