Shriram properties strikes to purchase share of AVM land for Rs 400 crore
Shriram Properties Ltd, a 15 billion dollar segment ofits broadened horizons Shriram Group has sealed a momentous real estate deal. The deal has taken place with renowned film producer A V Meiyappan’s family. AVM Balasubramanian, one of the five sons of Meiyappan has entered in an agreement with Shriram’s real estate segment. The deal agreement includes picking up an economic interest in about 6.5 acres of land in Vadapalani, primary location of Chennai.
This is part of multifaceted housing project, which is a part of country’s oldest living film studio AVM. The developer has plans of building 700,000 sqft residential projects in pipeline.
The land is valued under INR 400 crore and signifies Balasubramanian’s cut of the storied AVM Studio. As per sources, earlier it was said that deal would be regulated in two parts, where Shriram Properties will purchase the half of the land from Balasubramanian for the amount of INR 180 crores and mutually develop the remaining half with him.
As of now, term sheet in the form of primary deal has been signed, under which ownership of the land and its mortgage rights are transferred to Shriram properties. However the final closure of the deal and fund transfer process is yet to happen. This would happen once the approvals take place. As of now bothShriram Properties andBalasubramanian both haven’t commented about this deal.
If final closure takes in place, this would be the first ever big deal accomplished by Shriram Properties. Prior than this Tata Capital sealed a INR 470 crore deal of a noteworthy minority stake.
Source: The Times of India
