Realty firm Shriram Properties Ltd (SPL) on Tuesday, May 23, said it has acquired 100 percent development rights in an ongoing project in Chennai, through its wholly-owned subsidiary, Shrivision Elevations.
The company has decided on the acquisition of development rights in phases two and three of the project with a saleable area of 1.9 million square feet. The project has a revenue potential of around Rs 1,200 crore in the next five years, Shriram Properties said in an exchange filing.
SPL is proposing to relaunch the project under a new identity during the first half of FY24.
The project, named 'Divine City,' is an approved residential development with an aggregate saleable area of 3.2 million square feet, to be developed in three phases, it said.
The first phase, with a 1.3 million square feet area, was already launched by the erstwhile owners under the brand, 'Shriram Divine City,' with SPL as the development manager.
The project was launched pre-COVID and received a good response ,with 60 percent of phase one sold within a short period of time. The remaining two phases (1.9 million square feet area) are yet to be launched, the company said.
Given the change in the partner’s market strategy, the erstwhile owners have decided to monetise their development rights in the remaining phases of the project, with 1.9 million square feet of saleable area.
SPL's Chennai portfolio comprises four key projects, with 6.8 million square feet of saleable area, including 1.8 million square feet in completed projects/phases and five million square feet in ongoing projects.
Nearly 60 percent of the ongoing project is sold and there is no material inventory in completed projects or phases. SPL is targeting to launch two new projects over the next 12-18 months in the Chennai markets, with an aggregate sales potential of 3.3 million square feet.
(Edited by : Shoma Bhattacharjee)
First Published: May 23, 2023 6:59 PM IST
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