The company made this announcement during trading hours today, 9 April 2012.

Meanwhile, the BSE Sensex was down 209.07 points, or 1.2% to 17,276.95.

On BSE, 16,000 shares were traded in the counter as against average daily volume of 8,984 shares in the past one quarter.

The stock hit a high of Rs 635.90 and a low of Rs 608.05 so far during the day. The stock had hit a record high of Rs 845 on 12 July 2011. The stock had hit a 52-week low of Rs 592.30 on 21 March 2012.

The stock had underperformed the market over the past one month till 4 April 2012, falling 7.81% compared with the Sensex's 0.86% fall. The scrip had also underperformed the market in past one quarter, declining 0.95% as against Sensex's 10.1% gain.

The mid-cap real estate developer has equity capital of Rs 78.04 crore. Face value per share is Rs 10.

Godrej Properties (GPL) through its wholly owned subsidiary, Godrej Projects Development (GPDPL), has entered into a development management agreement with R R Builders to redevelop a MHADA property in Byculla, Mumbai. GPDPL will act as development manager and will be responsible for conceptualization, design, sales, and marketing of the project.

For its services as development manager, GPDPL will be entitled to a development management fee of Rs 50 crore from R R Builders over the duration of the project, GPL said. Over and above the development management fee, GPDPL will also receive part of the revenue as a promote beyond certain defined selling prices, GPL said. The entire costs for design, construction, and development of the project will be done by R R Builders in its role as owner-developer, while the cost for sales and marketing will be borne by GPL in its role as development manager, GPL said in a statement.

Commenting on the development, Mr Pirojsha Godrej, Managing Director & CEO, Godrej Properties said, "We are happy to announce a redevelopment project in Byculla under the development management model. The development management model will allow Godrej Properties to benefit from this development with very limited risk. We will seek to ensure this becomes one of Mumbai's best residential developments".

On a consolidated basis, Godrej Properties' net profit jumped 84.4% to Rs 28.62 crore on 196.9% growth in net sales to Rs 143 crore in Q3 December 2011 over Q3 December 2010.

Established in 1990, Godrej Properties (GPL) has completed several landmark projects and is currently developing significant projects in 12 cities across India.