Godrej Properties to raise funds through rights issue

Godrej Properties, the realty arm of Godrej group, is planning to raise funds through rights issue. The board will meet on May 9 to consider the issue of equity shares of the company, reports ET.

The company had launched an IPO in December 2009 to raise Rs 468 cr. It had also raised Rs 470 cr last year through Institutional Placement Programme (IPP). This year Godrej has managed to get around Rs 500 cr as debt for its commercial project at Bandra-Kurla Complex in Mumbai.

Godrej Properties focuses on residential, commercial and township developments. Its residential portfolio consists of various types of accommodations. The company's commercial portfolio includes office space catering to blue-chip Indian and international companies; IT parks catering to the requirements of IT/ITES companies; and retail space.

An earlier attempt to raise $100 Mn from Singapore government’s sovereign fund – GIC Real Estate for the project in February last year did not go through as the deal was called off later.

 In April, Godrej Properties announced a new redevelopment project in Chembur, Mumbai; it launched phase III of Godrej Summit in Gurgaon and Godrej Platinum in Alipore, Kolkata. In May, real estate developer signed a development management agreement for a project in Bengaluru.

In this segment, Samruddhi Realty issued 21.7 lakh equity shares for partial repayment of long term loans and DLF raised R750 Cr through issue of bonds for development of its housing and commercial projects.