Godrej Properties has raised around R500 Cr as debt for its commercial project at Bandra-Kurla Complex in Mumbai, states ET.

The total investment for Godrej BKC, the project, is outlined to be around R2,000 Cr for the proposed 1.3 Mn sq.ft project to be developed under a JV with Jet Airways.

Godrej is targeting at a revenue figure of R3,500-4,000 Cr out of this project. With an aim to achieve around 50% gross margins, the company is also estimating average realization to be around R25,000 for the initial stages which could scale up to about R30,000-35,000 Cr per sq.ft in three-four years.

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 on.

Godrej Properties, after launching a residential development fund worth R770 Cr along with a consortium of global investors led by APG in July last year, was planning to raise R200 Cr by issuing CPs in October.

As on June 30, 2012 GPL was developing 13.76 mn sq. ft. area launched in its thirteen ongoing residential projects. It is also developing 5.37 mn sq. ft. of area through its five commercial projects.

The new commercial hub of Mumbai, BKC, has seen the interest of investors rising as they shift dependence to commercial projects which provide steady rental yields and appreciation compared to residential units.

Morgan Stanley was in talks with Wadhwa Group to invest around R900-1,000 Cr ($186 Mn) in an office development project in Mumbai.

Among the deals in the office space, HDFC Bank was likely to buy commercial space in Lower Parel for R220 Cr.

The latest major office space deal in Mumbai was also concluded in Lower Parel when pharma firm Cipla bought office space in Peninsula Business Park in a deal worth over R270 Cr.

One of the major deals in the space was the DLF-Lodha one in which DLF sold a land parcel to Lodha Group for R2700 Cr last year.

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