 "Puravankara sells 50% stake in Kochi project to Sobha for Rs326cr")
Both Bangalore-based companies will jointly develop a housing project on this 16.69 acres of land near Marine Drive in Kochi, Kerala. The company has entered into a co-owner agreement with Sobha Developers to develop this project.
"This is to inform that the Puravankara Projects has sold by way of sale deed and agreement for sale to Sobha Developers Ltd, lands in Marine Drive Kochi Kerala and as co-owner, Sobha Developers would be constructing a residential project at Marine Drive in Kochi Kerala," Puravankara said in a filing to the BSE today.
As co-owners both firms will execute the project, with each being entitled to equal rights.
"The total consideration of Rs 326.56 crore will be paid by Sobha Developers," Puravankara said.
Puravankara has already got Rs 161.56 crore and Sobha would pay rest of the amount within 9 months from the date of receipt of plan approval.
"The company would be using the proceeds substantially to prepay debt," Puravankara said.
In a separate filing, Sobha said: "The total consideration for acquiring the co-ownership rights is Rs 326 crore".
Sobha said it will undertake the construction of the project and will be entitled to cost of construction plus a mark-up of 10% over and above such cost.
The company will also be entitled to an additional 5% of the net profits of the project as management fees from Puravankara.
Sobha has a strong presence in Kerala and is executing projects in three cities - Thrissur, Calicut and Kochi. The Kerala property market is one of the company's focus area in the southern markets apart from Bangalore.