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Godrej Properties, RR Builders To Redevelop Byculla Project

4/9/2012 5:58 AM ET

The Mumbai-based real estate developer Godrej Properties Ltd, through its wholly owned subsidiary Godrej Projects Development Pvt. Ltd., has entered into a Development Management Agreement with R.R. Builders for redeveloping a Maharashtra Housing & Area Development Authority (MHADA) property at Byculla, Mumbai.

The project, spread over nearly 2.5 acres, would offer around 3 lakh sq.ft of free saleable area and is proposed to be developed as a residential project having 2, 3 and 4 BHK apartments.

Godrej Projects Development would act as development manager responsible for the conceptualization, design, sales and marketing the project and would be entitled for a development management fee of Rs.50 crore from R.R. Builders. Besides, the company will be entitled to receive part of the revenue as a promoter beyond certain defined selling price.

The entire cost of design and construction would be borne by R.R. Builders as owner-developer, while the cost of sales and marketing would be borne by Godrej Properties as development manager, the company said.

Managing Director Pirojsha Godrej 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 see to ensure this becomes one of Mumbai's best residential development."

At the BSE, Godrej Properties shares are currently trading at Rs.621.40, up 0.58 percent from the previous close.

by RTT Staff Writer

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