Godrej Properties Ltd [GPL] the launch of Godrej BKC, a prestigious commercial project in BKC – a rapidly developing business district located in Central Mumbai. The project comprises of 1.3msf of saleable area (2.5-acre plot area) and would entail strata sale. It has been launched at ~Rs25,000psf (base selling price) and is expected to be completed in three years. GPL expects a good response to the project once demand for office space revives in Mumbai and estimates revenue of Rs35-40bn from it. Skidmore, Owings and Merill (SOM) are the lead architects for the project, while Larsen & Toubro will carry out construction.
Godrej BKC is to be developed by an SPV – a 50:50 (profit share) JV between GPL and Jet Airways. Jet Airways bought the project plot from MMRDA in 2006 for Rs8.3bn and the development SPV was formed in August 2011. The JV took over Rs3.6bn of debt obligation from Jet (toward land purchase) and
paid an additional Rs1.35bn to Jet.
GPL can sell the project at an Average Selling Price of Rs30,000/sft over the next three years and project cost of ~Rs11,000/sft
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