Godrej Group entities Godrej & Boyce and Godrej Properties, as part of ownership realignment of their shareholdings in the Godrej Companies, have decided to continue their Memorandums of Understanding (MoU) executed from time to time, for development of the former’s land in Mumbai’s eastern suburb Vikhroli.
This proposed development will take place as and when the land owner and developer Godrej & Boyce is desirous of developing the said land, the companies said in a joint release.
“The future development of Vikhroli presents a unique opportunity to create a holistic space in the metropolis of Mumbai where urban development and biodiversity co-exists harmoniously. Godrej Construction and Godrej Properties bring complementary strengths, and this has translated into the launch of successful real estate projects in Vikhroli,” said Jamshyd Godrej, CMD, Godrej & Boyce.
Godrej Construction, a business of Godrej & Boyce, designed and built four phases of Godrej Platinum, residential development project with a total constructed area of 1 million sq ft, which has been marketed by Godrej Properties. In March, a new project Godrej Vistas was launched under this arrangement.
“We look forward to continuing our association with Godrej & Boyce with a view to make Vikhroli into a world-class neighborhood that delivers its residents an outstanding quality of life while ensuring the highest standards of sustainable development,” said Pirojsha Godrej, Executive Chairperson, Godrej Properties.
The Godrej Group owns over 3,400 acres in Mumbai’s eastern suburb Vikhroli. The family secured ownership of this property from the receiver of the Bombay High Court during the 1940s.
A large chunk of this total land holding falls under ecologically sensitive mangroves and around 1,000 acres can be developed. Valuation of this developable land itself can be around Rs 1 lakh crore.
In 1997, the Vikhroli mangroves under the trusteeship of Godrej & Boyce and the Godrej Foundation became India’s first ISO 14001 certified forest.
Initially granted to a Parsee merchant by the East India Company in the 1830s, this land became available for purchase in the early 1940s during World War II.
Following the acquisition, the Godrej family expanded the holdings by purchasing adjacent parcels through negotiations with more than 200 neighboring landowners, taking the total holding to a total of 3,400 acres.
The promoter family and group companies hold 58.48% in Godrej Properties, the real estate development arm of the group. As a key entity in the group, Godrej Properties helps the group monetise its land bank.
The company has signed a memorandum of understanding with group entities to develop land parcels under the development management agreement (DMA) model, which provides long-term business visibility.
