New Delhi, Nov 25 (PTI) Realty firm Shriram Properties Ltd on Friday said it has completed the acquisition of 100 per cent equity in Suvilas Realities, which is developing a housing project worth Rs 400 crore.
The acquisition has been done through its wholly-owned subsidiary, Shriprop Builders Pvt Ltd.
Suvilas Realities is currently developing a 0.65 million square feet (msf) residential project on a 6.9 acres land located at Jalahalli, Bengaluru, under the brand name 'Shriram Suvilas Palms'.
The project was being developed under the development management arrangement with Shriram Properties and the existing promoters desired to monetise at the early stage.
Shriram Properties saw the opportunity given the location and the significant potential and secured the project through the company acquisition.
The project has an aggregate saleable area of 0.65 msf and revenue potential of over Rs 400 crore.
Separately, in an independent transaction, Shriram Properties has acquired another project from Suvilas, namely the Shriram Suvilas Garden of Joy, which comprises 152 units with an aggregate saleable area of about 0.2 million square feet.
This project too was under the development management arrangement, but Shriram Properties has acquired the project pursuant to a Joint Development Agreement recently.
Shriram Properties is now proposing to re-launch both projects under a new identity during the third quarter of 2022-23 financial year.
"The acquisition is value accretive for our stakeholders and will remain focused on unlocking value expeditiously. The acquisition will help us in gaining full control of both projects and we will remain focused on accelerated execution and timely delivery of quality projects to our customers," Murali M, CMD of Shriram Properties, said.
Shriram Properties Ltd is one of South India's leading residential real estate development companies, primarily focused on the mid-market and affordable housing categories.
Its key markets include Bengaluru, Chennai and Kolkata which together accounts for nearly 85 per cent of its development activities.
The company has delivered 33 projects with a saleable area of 19.5 million square feet, mostly in the cities of Bengaluru and Chennai.
Shriram Properties has a strong development pipeline comprising 53 projects with an aggregate development potential of 53 million square feet, as of September 30, 2022. PTI MJH SHW SHW