Godrej Group Forms SPV for Vikhroli Property Development
Godrej Industries has announced its collaboration with Godrej & Boyce and Godrej Properties to establish a special purpose vehicle (SPV) for the development of its land in Vikhroli, Mumbai. This information was shared by the company in an official communication to the Bombay Stock Exchange (BSE).
Development Details and Board Approval
While the company refrained from disclosing specifics about the area slated for development, it confirmed that the board of directors, through a circular resolution passed on Wednesday, greenlit this venture.
Vikhroli Land Holdings and Development Potential
The Godrej group holds substantial land assets, approximately 5,000 acres, in Vikhroli. Although portions of this land have already been utilized for both residential and commercial purposes, there are extensive vacant parcels which remain primed for development. This development could occur amidst the possibility of The Urban Land Ceiling Act’s impending repeal.
MoU and Commercial Terms
It has formed a strong partnership with a binding Memorandum of Understanding (MoU). The constituents of this MoU stipulate the creation of an appropriate SPV which clearly sets out the joint development procedures. It also specifies the commercial terms for such development, incorporating the allocation of costs, revenues, and profit sharing methodologies amongst the involved parties.
Following this announcement, Godrej Industries' shares saw a 6% increase, closing at Rs 201 on Wednesday. This signifies the positive response regarding the development potential in Vikhroli.