Shriram Properties strikes deal to buy AVM Land
Sh
riram Properties Ltd, a part of the $15 million diversified Shriram group has hit a milestone with the new real estate deal involving legendary film producer A V Meiyappan. Shriram’s real estate unit has big plans of building 700,000 square feet worth of residential property around India’s oldest surviving film studio AVM, where economic interests are to be tweaked in 6.5 acres of prime land in Vadapalani, Chennai. This is as per the preliminary agreement between Shriram Properties and AVM Balasubramanian, one of the five sons of Meiyappan.
The famous AVM studio that introduced southern silver screen superstars such as Sivaji Ganesan, Vyjayanthimala, Kamal Haasan, and Rajinikanth represents Balasubramaniam’s share and is worth just under Rs 400 crore. Shriram Properties is to buy half of Balasubramaniam’s land parcel at a value of Rs 180 crore, and the remaining half will be developed with the combined efforts of both entities.
A final deal closure and transfer of funds will only be completed once the approvals are acknowledged, although a term-sheet declaring Shriram Properties’ ownership rights over the land has already been signed. Shriram Properties, known to have a powerful track record of attracting potential investors, is planning to procure financial help from capitalists to fund the AVM project as well. This is Shriram Properties next project after Tata Capital bought a significant minority stake in the company valued at Rs 470 crore two weeks ago.
The land parcel development of 1.5 acre Tata Communications for Rs 200 crore and 10.16 acre Hindustan Teleprinters for Rs 272 crore in Chennai are being undertaken by Chennai-based VGN Developers.
Source: The Times of India
AVM Balasubramanian, Kamal Haasan, land in Vadapalani, projects by VGN developers, Shriram Properties, Sivaji Ganesan, Tata Capital, Tata Communications, VGN Developers, Vyjayanthimala
