Godrej Properties said on Friday that it has chosen to withdraw its $400 million investment in DB Realty. This comes barely a day after the company announced a 400 crore investment to purchase a roughly 10% share in DB Realty and another 300 crores to establish a collaborative platform for slum restoration initiatives.
The entire size of Godrej Properties and DB Realty’s joint platform would be 600 crores, with each party investing 300 crores. However, the company announced today that it had received significant input and opinions from its stakeholders as well as minority investors raising concerns about the suggested contract with DB Realty, such as the framework of the contract, the rationale for the investment in DB Realty Limited, and the benefits of investing through the platform.
The Board of Directors met today to evaluate and debate the views and issues expressed by stakeholders. “After prolonged discussions and taking into consideration the feedback from the stakeholders and minority investors, the Board has decided not to proceed with any further evaluation of a potential investment in the equity capital of the DB Realty and the Platform,” Godrej Properties said in a statement.