Godrej Properties spurts up

Godrej Properties is amongst the top gainers on the BSE currently. The stock, which has closed yesterday at Rs.249.60, opened higher today at Rs.256.05 and went on to hit an intra day high at Rs.268.90 and it remains firmly in the green.

The stock is reacting to the news that it is being appointed as a development manager for a new project in Vikhroli, Mumbai. The company has entered into an agreement with Godrej & Boyce to develop a new mixed use project on the property at Pirojshanagar, Vikhroli West, Mumbai. The potential saleable area in this project will be approximately 110,000 square meters (1.2 million sq. ft.).

Godrej Properties will act as development manager and will work with G&B on the conceptualisation, design, sales, and marketing of the project. For its services, Godrej Properties will receive a fee equal to 10% of the revenue generated from the development. The costs for design and construction of the development will be borne by Godrej & Boyce in its role as owner - developer while the cost for sales and marketing will be borne by Godrej Properties in its role as development manager.

And over and above this news, the company has acquired a 49% of paid-up share capital & entire debentures of Godrej Premium Builders from Madhavi SA Investments & Madhavi Ventures.