Shriprop Builders, wholly-owned subsidiary of Shriram Properties (SPL), has acquired 100% of equity shares of Bengaluru-based Suvilas Realities for Rs 30 crore, the company said in the BSE filing. Consequently, Suvilas Realities has become a tier 2 subsidiary of the company.
Suvilas Realities is currently developing a 0.65 million sq ft 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. SPL saw the opportunity given the location and the significant potential and secured the project through the company acquisition.
The acquisition allows full control of the project which has a revenue potential of over Rs 400 crore.
In a separate transaction, Shriram Properties has acquired another project from Suvilas, namely the Shriram Suvilas Garden of Joy, which comprises of 152 units with aggregate saleable area of approximately 0.2 million sq ft and being developed on a two-acre land parcel located Jalahalli, it said in the media release.
Garden of Joy too was under the development management arrangement, but Shriram Properties has acquired the project pursuant to a joint development agreement recently.
Murali M, CMD, Shriram Properties said, “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.”
Shriram Properties is now proposing to re-launch both projects under a new identity during Q3 FY23.
