Godrej Properties cancels deal with D B Realty

Real estate firm Godrej Properties has decided to cancel its plans to invest Rs 700 crore in D B Realty to acquire 10 per cent stake and also set up a joint platform amid concerns raised by minority shareholders and other stakeholders.

On Thursday, Godrej Properties had announced that it will invest Rs 400 crore to acquire around 10 per cent stake in D B Realty and another Rs 300 crore to set up a joint platform for undertaking slum redevelopment projects.

"We've decided against going ahead post the feedback we received from various stakeholders including our minority investors," Godrej Properties Ltd Executive Chairman Pirojsha Godrej told PTI when asked whether the investment deal with DB Realty has been cancelled.

"There were concerns with the structure of the investment as well as with the slum redevelopment business in general," he added.

As per the proposed deal, the total size of the joint platform between Godrej Properties and D B Realty was to be Rs 600 crore, with each party contributing Rs 300 crore.

Mumbai-based Godrej Properties Ltd (GPL), one of the leading developers in the country, had proposed to invest a total of Rs 700 crore.