Godrej Properties Ltd (GPL) plans to pump in Rs 400 crore to procure approximately 10% stake in DB Realty (DBR) and will additionally install a Rs 600 crore 50-50 joint platform to take up slum redevelopment projects, the firm said in a Bombay Stock Exchange (BSE) filing. The board of directors of DB Realty and the board of directors of Godrej Properties is planning to subscribe to the number of warrants released by DB Realty which will be convertible into the number of equity shares aggregating about 10% of the released and paid-up capital of DB Realty for an aggregate amount of nearly Rs 400 crore; and install a special purpose vehicle (SPV) as a joint enterprise with DB Realty to together take up slum rehabilitation and Maharashtra Housing & Area Development Authority (MHADA) redevelopments projects, by leveraging the respective core expertise of the parties. Godrej Properties to subscribe to 5,00,00,000 warrants convertible into equity shares in DB Realty corresponding to about 10% of the released and paid-up expanded capital of DBR for an aggregate amount of approximately Rs 400 crore, DB Realty said in a separate regulatory filing. GPL and DBR will individually contribute an additional 300 crore towards the equity platform concentrated on redevelopment opportunities in Mumbai. The planned SPV is yet to be included and will be installed at a later stage. The equity platform will serve as a strategic special purpose vehicle providing GPL with ROFR (Right of First Refusal) for all slum rehabilitation and MHADA redevelopment projects to be recognised by DBR across Mumbai under a 50:50 equity association with 10% development management fees to GPL and a service fee equal to 5% of the income of the project to be paid to DBR by the SPV. They believe this strategic collaboration will permit each firm to utilise its complementary strengths to enhance the amount of successful slum rehabilitation and MHADA redevelopment projects in the city, Mohit Malhotra, MD & CEO, Godrej Properties, told the media. Image Source Also read: MHADA approves redevelopment of old buildings in Mumbai