Essar Group today announced sale of its luxury housing project in Bengaluru for Rs 300 crore to SNN Builders as part of the company's strategy to monetise non-core assets.
The company had last month sold its 1.25 million square feet Equinox Business Park at Bandra-Kurla Complex (BKC) in Mumbai to realty firm RMZ Corp for about Rs 2,400 crore.
In a statement, Essar said it has "signed a definitive agreement with SNN Builders to sell its upscale Water's Edge residential project in Bengaluru for Rs 300 crore."
The transaction is expected to be completed in the next 30-45 days.
SNN Builders would be taking this project forward. The project entails construction of 2 million sq ft and is likely to generate revenues of Rs 1,200 crore.
Commenting on the development, Sudip Rungta, Executive Director (M&A) of Essar, said: "Water s Edge is a marquee project that has been successful in attracting premium clients. Customers are our main focus and we wanted to ensure that we hand over the project to someone with a similar mindset."
"The transaction is also in line with the Essar strategy of monetising its non-core assets," Rungta said.
The 8-acre project is being built in three phases and will comprise five 40-storey towers, amongst the tallest in Bengaluru, and house over 400 apartments.
SNN Builders MD Ramesh Agarwal said the transaction would provide much awaited entry into North Bengaluru and fits in with strategy of launching an ultra-luxury housing project.
"With eight ongoing projects and 5.5 million sq ft area already under development in our portfolio, and with the acquisition of Water s Edge project, we now have a variety of assets to offer to our customer base," said Sanjay Shah, MD of SNN.
Established in 1994, SNN Builders have completed over 40 projects in Bengaluru in both mid as well as luxury segments, delivering over 12 million sq ft of residential, commercial and industrial spaces.