A part of the land belonging to AVM Studio sold to Shriram Properties Ltd
Shriram Properties Ltd, a part of the $15 billion diversified Shriram Group, has struck a landmark real estate deal with the family of the legendary film producer A V Meiyappan in about 6.5 acres of prime land at Vadapalani in Chennai. This land is a part of the campus which is the home for India’s oldest surviving film studio AVM.
A preliminary agreement has been signed between Shriram’s real estate unit and AVM Balasubramanian, one of the five sons of Meiyappan. This land parcel is valued just under Rs 400 crore, and represents Balasubramanian’s share of the storied AVM Studio.
As per the present talks, the deal would be structured in two parts, where Shriram Properties will buy half of Balasubramanian’s land for about Rs 180 crore and jointly develop the remaining half with him.The developer plans to build 700,000 square feet of residential projects on the land.
A term-sheet (or a preliminary deal) giving Shriram either the ownership or the mortgage rights over the land has been signed. However a final closure and fund transfer would happen only after the approvals fall in place.
Two weeks ago Tata Capital bought a significant minority stake in the company for Rs 470 crore. This would be the first big land deal which will be executed by Shriram Properties after Tata Capital’s entry into the company.
Source- The Times of India
