Bangalore: Godrej Properties Limited (GPL) has entered into a development management agreement with Ratnaraj Blessing Milestone, a partnership firm, to redevelop a private society Kamgar Swa Sadan Cooperative Housing Society Ltd., situated at Mahadeo Palav Marg, Currey Road in central Mumbai, the developer informed the Bombay Stock Exchange (BSE) on Wednesday morning.
Godrej Properties, through its subsidiary Godrej Projects Development Pvt Ltd, will act as development manager and will be responsible for the project conceptualization, design, sales, and marketing.
The project will offer around 120,000 sq. ft of saleable development area and the plan is to develop a residential development with two, three and four bedroom apartments.
The structure of the agreements is such that as development manager, Godrej will receive a development management fee from Ratnaraj Blessing Milestone over the duration of the project with an additional upside promote based on sales realisation beyond a threshold. The costs for design, construction, and development of the project will be borne by Ratnaraj Blessing Milestone as developer, while Godrej will bear the cost for marketing and supervision of the project will be borne by as development manager.
“This is the fourth consecutive quarter in which Godrej Properties has added a new redevelopment project in Mumbai,” said Pirojsha Godrej, managing director and chief executive, Godrej Properties in a statement. “The development management model will allow Godrej Properties to benefit from this development with limited risk.”