BENGALURU: Essar said it will sell an upscale residential project in Bengaluru to city-based SNN Builders for Rs 300 crore in cash as it looks to move away from its non-core businesses.
The deal, which will be an upfront payment, comes less than two months after the Shashi and Ravi Ruia-owned company sold Equinox Business Park in Mumbai to southern real estate major RMZ Corp for Rs 2,400 crore.
The project, named Water’s Edge, is located in North Bengaluru, which has become a hub for premium residential apartments due to the presence of many major builders such as Sobha, Embassy, Prestige, Ozone and L&T.
“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,” Sudip Rungta, Essar’s M&A executive director said.
Water’s Edge is an 8-acre project built in three phases, comprising of five 40-storey towers and more than 400 apartments
. The total construction space is about 2 million sq ft and is likely to generate revenues of Rs 1,200 crore, Essar said on Thursday. The project is yet to be handed to customers.
“This transaction provided us a much awaited entry into North Bangalore and fits in with our strategy of launching an ultra-luxury residential
project,” SNN managing director Ramesh Agarwal, said.
After the sale, which is expected to be completed in the next 30-45 days, Equinox Realty, Essar’s real estate arm set up in 2007, will be left with an 8-acre land
in Thane and the company will be looking to sell that as well in the near future.