REALTY firm Godrej Properties on Monday said it has entered into a
development management agreement with RR Builders to re-develop a MHADA
property at Byculla in central Mumbai.
The company's wholly owned subsidiary Godrej Projects Development
(GPDPL) will act as a development manager and will be responsible for
conceptualisation, design, sales, and marketing of the project, GPL said in a
As per the agreement, GPDPL would be entitled to a development
management fee of Rs 50 crore from RR Builders over the duration of the project
and also receive part of the revenue as a promoter beyond certain defined
selling prices, the release said.
“The development management model will allow Godrej Properties to
benefit from this development with very limited risk. We will seek to ensure
this becomes one of the city's best residential developments,“ GPL managing
director and chief executive officer Pirojsha Godrej said.
The cost of the project will be borne by RR Builders in its role as
owner-developer, while the cost for sales and marketing will be borne by GPL,
the release said.
The project, spread over around 2.5 acres, will offer nearly 3 lakh sq
ft of free saleable residential area comprising 2, 3, and 4 BHK apartments, it