Godrej Properties creates a real estate fund management business
Mayuresh Deshmukh / 21 Mar 2016
Godrej Properties Ltd. (GPL), one of India's leading real estate developers, has created a dedicated real estate funds management business in India and Singapore – Godrej Fund Management (GFM).
Godrej Properties (GPL), one of India's leading real estate developers, has created a dedicated real estate funds management business in India and Singapore – Godrej Fund Management (GFM). GFM has raised a USD 275 million (Rs 1900 crore) pool of capital, Godrej Residential Investment Program II (GRIP II) with Dutch pension fund asset manager APG Asset Management N.V. (APG) as the lead investor.
GFM will advise GRIP II investors on investments into a residential development platform with GPL in India. GRIP II is a follow on to the USD 200 million residential development platform GPL had set up with an APG led investor consortium in 2012. GPL will hold a 20 per cent stake in GRIP II.
APG and GPL pioneered the joint venture approach in the Indian real estate market in 2012 with GRIP I, a structure that has been followed by other foreign institutional investors and Indian developers since.
This partnership will help GPL to attract high quality long-term equity investors to partner with it in its development projects across India. This fits well with the company’s strategy of deepening its presence across the country's leading real estate markets while maintaining a capital light development strategy.
On the financial front, GPL's total revenue from operations decreased by 18.68 per cent year on year (YoY) to Rs 422 crores in Q3FY16 from Rs 519 crores in Q3FY15. EBITDA stood at Rs 80 crores compared to Rs 64 crores in Q3FY15, an increase of 25.23 per cent YoY. EBITDA margin stood at 19 per cent in Q3FY16 compared to 12.32 per cent same period last year. The good EBITDA numbers are on back of decrease in other expenses by 26 per cent to Rs 330 crores from Rs 445 crores in Q3FY15. The net profit stood at Rs 52 crores this quarter compared to Rs 47 crores in Q3FY15, an increase of 10.06 per cent YoY.
On valuation front, the stock of the company is trading at trailing twelve month P/E of 21.49 compared to industry P/E of 22.07. The stock of the company is trading at Rs 286 an increase of 1.42 per cent from the previous close.
If you want to stay updated with the share market news today, keep a close watch on the indian stock market today with real time movements like sensex today live and overall stock market today trends. Investors tracking ipo allotment status, ipo news today, or the latest ipo india can also follow daily updates along with bse share price live data. Whether you are learning how to invest in stock market in india, preparing for a market crash today, or searching for the best stocks to buy in india, insights on top gainers today india, top losers today india, trending stocks india and long term stocks india help in making informed investment decisions.