India Real Estate Monitor

Godrej Industries has entered into an agreement with Godrej & Boyce and Godrej Properties to form a special purpose vehicle for developing its property at Vikhroli, the company said in a communique to the BSE.
Without divulging details on the area to be developed, it said that the board of directors, through a circular resolution on Wednesday approved the proposal.
The Godrej group owns about 5,000 acres in Vikhroli. Though a part of the land has been used for residential and commercial purposes, the group still has huge vacant property left that can be developed before the Urban Land Ceiling Act is repealed.
The binding MoU provides for setting up a suitable SPV to execute joint development of the property as also the commercial terms for such development including the sharing of costs, revenues and profit. The Godrej Industries scrip was up 6% at Rs 201 on Wednesday.