In an exclusive interview to CNBC-TV18, Adi Godrej, chairman of Godrej Properties says that they have entered into an agreement with Godrej and Boyce to act as development manager for their projects in Vikhroli. “We see great potential for this agreement because investment are made by Godrej and Boyce, which gives us the opportunity to do several other joint ventures where funding is required,” he explained.
Currently, Godrej Properties earns a 10% fee as development manager. But the cost to Godrej Properties is 2 percentage points, which means that they will make an 8% profits on sales.
“We feel that this agreement will help us grow very significantly over the next 10 to 20 years, so it is an ideal combination for Godrej Properties,” said Godrej.
However, due to the global situation and rise in interest rates, Godrej has noted a slowdown in property sales, more in commercial than residential. Despite that, Godrej recorded an 80% increase in sales over the previous year.
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Currently, Godrej Properties earns a 10% fee as development manager. But the cost to Godrej Properties is 2 percentage points, which means that they will make an 8% profits on sales.
“We feel that this agreement will help us grow very significantly over the next 10 to 20 years, so it is an ideal combination for Godrej Properties,” said Godrej.
However, due to the global situation and rise in interest rates, Godrej has noted a slowdown in property sales, more in commercial than residential. Despite that, Godrej recorded an 80% increase in sales over the previous year.
....more info