Godrej Properties, one of the leading real estate developers, today announced that it has entered into an agreement with Godrej & Boyce (G&B) to develop a new project on the latter's property on the Eastern Express Highway, Vikhroli, Mumbai. The potential saleable area in this project will be up to 800,000 sq. ft and is likely to compromise of premium residences as well as small component of convenience retail.

Godrej Properties will act as development manager and will work with G&B on the conceptualization, design, sales and marketing of the project. For this services, Godrej Properties will receive a fee equal to 10% of the total 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.

Pirojsha Godrej, managing director & CEO, Godrej Properties said, ''We are happy to add this exciting new project to our Vikhroli development portfolio. We now have about 5 million sq. ft. of saleable area in Vikhroli that is under various stages of execution or planning. This new development will add to the scale of our operations in Vikhroli and will help us build momentum in establishing Vikhroli as Mumbai's most exciting destination.''

Shares of the company gained Rs 2.6, or 1.52%, to trade at Rs 173.50. The total volume of shares traded was 123,581 at the BSE (12.53 p.m., Tuesday).