Mumbai-based developer Godrej Properties launched its ambitious 1.3 million square feet commercial project at Bandra Kurla Complex (BKC) on Tuesday, eyeing a revenue of around Rs 3,500-Rs 4,000 crore.

The project called Godrej BKC is under construction and is expected to be complete by 2015. The average price realisation expected from the project would be Rs 27,000-Rs 28,000 a square feet.

Constructed at a cost of about Rs 2,000-Rs 2,500 crore, the project has been developed as a joint venture between Godrej Properties and Jet Airways. It would be constructed by engineering giant Larsen and Toubro.

Accordingly, Godrej and Jet would be sharing the profits from the development in a 50:50 ratio. Of a total saleable area of 1.3 million square feet in Godrej BKC, 1,61,460 square feet of carpet area would be used by Jet Airways as their new headquarters.

The real estate arm of diversified conglomerate Godrej Industries is banking on the project’s location to attract buying interest. Godrej Properties CEO Pirojsha Godrej said: “We are bullish on commercial real estate and believe an improvement in sentiment is around the corner, with the interest rate cycle turning”. Comprising 20 floors for commercial office development and two basements for parking, the project would also boast of a food and retail space on the ground floor. The CEO, however, stated that the company was open to both rentals as well as selling a stake in the project.

Pirojsha added that the project would be financed through a combination of debt funding and sales. “We have gone in for a combination of debt funding with attractive refinance terms, including payment at the end of four years by which our project would be complete. All the incremental funding requirements for the project would be met through sales bookings,” he said.

The scrip of Godrej Properties rose by 3.03 per cent from its previous close on the BSE to end at Rs 562.75 a share.

Source : The Hindu Business Line