Shriram Properties (SPL) has acquired 100% development rights in an ongoing project at Chennai, through its wholly-owned subsidiary, Shrivision Elevations.
The company has decided on the acquisition of development rights in phase-2 & 3 of the project with saleable area of 1.9 million sq ft. The project has revenue potential of around Rs 1,200 crore in the next five years.
The project, named ‘Divine City’, is an approved residential development with aggregate saleable area of 3.2 million sq ft, to be developed in three phases. The first phase with 1.3 million sq ft area was already launched by the erstwhile owners under the brand ‘Shriram Divine City’, with SPL as the development manager.
The remaining two phases (1.9 million sq ft 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. The company proposes to re-launch the project under a new identity during H1-FY24.
M Murali, CMD of the company said, “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.”
SPL’s Chennai portfolio comprises of four key projects, with about 6.8 million sq ft of saleable area, including 1.8 million sq ft in completed projects/phases and about 5 million sq ft in ongoing project/phases. The company is targeting to launch two new projects over the next 12-18 months in the Chennai markets, with aggregate sales potential of 3.3 million sq ft.