Stock Report

Godrej Properties and DB Realty to form SPV for redevelopment projects

Posted On : 2022-02-03 21:37:18( TIMEZONE : IST )

The Board of DB Realty Limited today approved setting up of a 50:50 owned special purpose vehicle (SPV) to jointly undertake slum rehabilitation and MHADA redevelopment projects. GPL and DBR will each contribute Rs.300 crore towards the equity platform focused on redevelopment opportunities in Mumbai.

GPL will also subscribe upto 5,00,00,000 warrants convertible into Equity Shares aggregating to approximately 10% of the issued and paid-up expanded capital of DBR for an aggregate amount of approximately Rs 400 crore.

The SPV will jointly develop all slum rehabilitation and MHADA redevelopment projects to be identified by DBR across Mumbai with a service fee equal to 5% of the revenue of the Project to be paid to DBR by the SPV. This SPV will provide DBR access to the development expertise of GPL to conceptualise, execute, market and finance large re-development projects in Mumbai.

Axis Capital acted as the sole advisor to the transaction.

Mr. Shahid Balwa, MD, DBR said, "We are very excited to announce a strategic partnership with Godrej Properties Limited, which will give DBR a strong platform in the Mumbai re-development space. We believe that this strategic partnership will allow DBR to focus on its core strength of brownfield redevelopment and deep domain expertise to enable the SPV / GPL to undertake the actual conceptualisation, execution, marketing and financing of the projects efficiently. Both partners bring diverse strength to the table and this partnership will lead to immense value creation for the SPV, GPL and DBR. DBR already has a large existing relationship with Prestige Group and this new venture with GPL will lead to immense value unlocking for the shareholders of DBR."

Shares of D B Realty Limited was last trading in BSE at Rs. 96.10 as compared to the previous close of Rs. 91.55. The total number of shares traded during the day was 128844 in over 323 trades.

The stock hit an intraday high of Rs. 96.10 and intraday low of 96.10. The net turnover during the day was Rs. 12381908.00.

Shares of Godrej Properties Limited was last trading in BSE at Rs. 1669.25 as compared to the previous close of Rs. 1783.55. The total number of shares traded during the day was 182721 in over 17316 trades.

The stock hit an intraday high of Rs. 1791.85 and intraday low of 1652.15. The net turnover during the day was Rs. 313060205.00.