Chennai to get township project

Chennai: SSI Ltd, the Hyderabad-based PVP Group Company, has entered into a joint development agreement with Arihant Foundations and Unitech Ltd to promote a 70-acre township in Chennai, according to information provided by SSI to the stock exchange.

Mr Prasad V. Potluri, Chairman and Managing Director, PVP Group, said that SSI Ltd, the land owner, has entered into an agreement with a consortium, of Unitech and Arihant Foundations, which brings the expertise in project implementation and marketing to promote the township.

The joint development agreement provides for a revenue sharing on a 43:57 basis between SSI and the consortium.

The total revenue flow from the project is estimated about Rs 4,500 crore with SSI making about Rs 2,000 crore over seven years that the project is expected to take.

Officials close to the deal said that Arihant Foundations and Unitech have floated a special purpose vehicle in an equal partnership to implement the project at Perambur. It envisages a township with a residential area of about 50 acres and the balance dedicated to commercial and retail space.

The township will be the single largest project of its kind within the city limits. Over 4,000 apartments with a total built up area of about five million sq ft apart from retail and commercial space of about 2.5 million sq ft is planned.

Unitech, is among the largest players in the real estate sector in India and Arihant is a market leader in the South with a strong brand name.