Godrej Fund Management, the private equity real estate arm of Godrej Group, is in advanced talks with US-based private equity firm New Vernon Capital to buy its IT park at Thane for Rs 400 crore, said two persons familiar with the development.
The project G: Corp Tech Park on Ghodbunder Road in Thane was built in 2010 by realty developer G Corp and was later acquired by New Vernon Capital. The project has a total built-up area of around 7.50 lakh sq ft with a floor plate of 70,000 sq ft. Of the total 6 lakh sq ft of leasable space, around 98 percent is leased and occupied at present.
“Both the parties have entered the last lap of the deal conclusion. Currently, the final leg of due diligence is going on and the deal is expected to be closed anytime soon,” said one of the persons mentioned above.
Currently, monthly lease rentals at this IT park are about Rs 55-55 per sq ft, which takes the annual rentals income to Rs 36 crore to Rs 40 crore. Based on the current rent generation potential of the property and the final consideration amount, the transaction is valued at around 8 percent capitalization rate. Capitalization rate, or cap rate, is the ratio of net operating income of the property to its asset value.
Godrej Fund Management used to be part of Godrej Properties earlier and has recently been shifted under the Godrej Group. Both Godrej Fund Management and New Vernon Capital declined to comment on the story.
