Real estate developers and builders Shriram Properties Ltd (SPL), on Tuesday, announced that it has acquired 100 per cent development rights in an ongoing project at Chennai, through its wholly owned subsidiary, Shrivision Elevations Private Limited.
The project has a revenue potential of around Rs 1,200 crore in the next five years, the company said in a BSE filing.
“The acquisition is value accretive and will help us leverage the strong position in the micro market. Also, the acquisition will allow SPL to have full control of the remaining phases of the Project and unlock better value. Our focus will remain on quality execution on an accelerated pace with delivery delight to our customers,” said M Murali, CMD, Shriram Properties said.
In a regulatory filing, the company said, “The ‘Divine City’ project, is an approved residential development with an aggregate saleable area of 3.2 million square feet (msf), to be developed in 3 phases. The first phase with 1.3 msf area was already launched by the erstwhile owners under the brand ‘Shriram Divine City’.”
The project was launched pre-Covid and received good response with 60 per cent of Phase-1 sold within a short period of time, the company said in a statement.
The remaining two phases (1.9 msf area) is yet to be launched. Given the change in partner’s market strategy, the erstwhile owners have decided to monetise their development rights in the remaining phases of the project, with 1.9 msf of saleable area, according to the statement.
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SPL is proposing to re-launch the Project under a new identity during H1-FY24.
The Chennai market is a big continuing growth opportunity for SPL, given its strong market positioning and positive demand trends. SPL is among the top-5 developers in Chennai and has strong volume trends in recent years.