Shriram Properties gains after acquiring 100% stake in Suvilas Realities

28 Nov 2022 , 10:01 AM

Shriprop Builders, a wholly owned subsidiary of Shriram Properties, acquired Suvilas Realities for total consideration of Rs 30 crore. 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 (project). The project has an aggregate saleable area of 0.65 msf and revenue potential of over Rs 400 crore. 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. In an independent 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 aprpox 0.2 msf and being developed on a 2-acre land parcel located Jalahalli. Garden of Joy too was under the development management arrangement, but Shriram Properties has acquired the project pursuant to a joint development agreement recently. SPL is now proposing to re-launch both projects under a new identity during Q3-FY23, and expect it to be one of the largest developments in West Bengaluru with 2, 2.5 and 3 bedroom offerings. Murali M, CMD, Shriram Properties said, 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. Shriram Properties is one of South Indias leading residential real estate development companies, primarily focused on the mid-market and affordable housing categories. SPLs key markets include Bangalore, Chennai and Kolkata which together accounts for nearly 85% of its development activities. On consolidated basis, the company reported net profit of Rs 19.58 crore in Q2 FY23 as compared to net loss of Rs 23.28 crore in Q2 FY22. Net sales surged 240% YoY to Rs 258.55 crore in Q2 FY23. Powered by Capital Market - Live News