Godrej Properties and Jet Airways Partner on Commercial Project in Mumbai's BKC
Godrej Properties Ltd. (GPL), the real estate arm of the Godrej Group, is embarking on a significant commercial venture in Mumbai's Bandra Kurla Complex (BKC). In collaboration with Jet Airways, they will develop the project titled Godrej BKC.
This joint undertaking marks a substantial investment for both companies, with equal stakes in the development. Construction is already underway, with an anticipated completion date by the end of 2015.
Project Details and Financial Projections
Pirojsha Godrej, Managing Director and Chief Executive of GPL, expressed confidence in the project's potential, projecting a revenue generation of around Rs. 3,500-4,000 crore. The GPL Chief Executive further confirmed the anticipated timeframe for completion, stating it should be finished within two to three years. Specific financial details regarding the project, however, remain undisclosed at present.
Both Jet Airways and Godrej Properties will share the project costs equally, reflecting the 50-50 ownership structure. The airline has preemptively secured 2.5 lakh sq. ft. of office space within the development. The total salable space in Godrej BKC amounts to an expansive 1.3 million sq. ft.
Optimism for Project Success and Market Revival
The project's profits will be evenly distributed between the two partners, both of whom are optimistic about its success and positive market response. Pirojsha Godrej expressed confidence in the future of commercial space and the absorption of office spaces, anticipating a rebound in the coming years alongside a revival of the economy.
Location, Land Acquisition, and Development Partner
Strategically situated in the heart of BKC, Godrej BKC is projected to achieve an average appreciation of Rs. 27,000 to 28,000 per sq. ft. The project is being developed on a 2.5-acre plot of land that Jet Airways originally purchased from the Mumbai Metropolitan Region Development Authority (MMRDA) for Rs. 399 crore in a 2006 public auction. Larsen & Toubro, a major engineering firm, has been awarded the construction contract for this high-profile commercial development by the Godrej Group’s real estate division.