GIC to invest S$124.79m in Indian office project

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GIC Real Estate, a unit of the Singapore government’s sovereign fund GIC, is investing more than US$100 million (S$124.79 million) in a Godrej Properties’ office project at Bandra Kurla Complex (BKC) in Mumbai.

The project is being constructed on a 2.5-acre land site and is a joint venture agreement between Godrej Properties and Jet Airways.

This move is aimed at easing Godrej’s debt-equity ratio that is currently at about two times, said sources familiar with the project. Apart from direct equity dilution, both GIC and Godrej have also taken into account the option of forward sale of the whole commercial project.

Back in August 2011, Godrej Properties entered into a contract with Jet Airways to construct the latter’s 2.5-acre land parcel in BKC, Mumbai. Under the agreement, Godrej will develop a commercial complex with about one million sq ft saleable area, which must be completed within three years, with the proceeds of its sale to be shared equally with Jet Airways.

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