A major south Indian realty firm Shriram Properties Ltd on Tuesday said it has acquired development rights for 1.9 million square feet at an ongoing housing project in Chennai and aims Rs 1,200 crore worth sales revenue over the next five years.
According to a statement, the project named ‘Divine City’ is to be developed in three phases with an aggregate saleable area of 3.2 million square feet. The first phase of 1.3 million square feet area was already launched by the erstwhile owners under the brand ‘Shriram Divine City’, with Shriram Properties as the development manager.
The project was launched pre-Covid while the remaining two phases (1.9 million square feet 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 statement said.
To grow its business in Chennai, Shriram Properties has decided on the “acquisition of development rights in Phase-2 & 3 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 5 years.”
The company plans to re-launch the project under a new identity during the first half of FY24. M Murali, Chairman and Managing Director of Shriram Properties, said, “The acquisition is value accretive and will help us leverage the strong position in the micro market.
“Also, the acquisition will allow Shriram Properties to have full control of the remaining phases of the project and unlock better value.”