Godrej Properties has canceled its plans to invest Rs 700 crore in DB Realty to acquire 10 per cent stake and set up a joint platform, amid concerns raised by minority shareholders and other stakeholders. The concerns were with respect to the structure of the deal, rationale for the investment in DB Realty and merits of investing through the platform. To consider and discuss the feedback and the concerns raised by stakeholders, the board has deliberated the same.
Earlier, the company’s board has approved a potential investment in DB Realty (DBR) and also the setting up of a special purpose vehicle along with DBR to jointly undertake slum rehabilitation and MHADA redevelopment projects. The company has planned to subscribe to warrants convertible into equity shares aggregating to approximately 10% of the issued and paid-up capital of DBR for an aggregate amount of approximately Rs 400 crore. The company and DBR will each contribute an additional 300 crore towards the equity platform focused on redevelopment opportunities in Mumbai.
Godrej Properties is a realty firm of Godrej group and it is one of the leading real estate development companies in India based in Mumbai, Maharashtra. Currently, their business focuses on residential, commercial and township developments.
