The Hindu Business Line : Sobha Developers' joint venture for Kerala project

Corporate - Alliances & Joint Ventures
Industry & Economy - Real Estate & Construction
States - Karnataka
Sobha Developers' joint venture for Kerala project

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Integrated township project at Thrissur

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Bangalore, Jan. 22 Sobha Developers Ltd (SDL) has set up a joint venture with Tree Hill Estates Ltd of Kerala to implement a Rs 600-crore integrated township project in Thrissur in Kerala.

The joint venture has launched a special purpose vehicle (SPV) called Puzhakkal Developer Private Ltd to build residential-cum-commercial infrastructure complex in the temple town, said Mr Pradumna Kanodia, Chief Financial Officer. He, however, declined to the give the details of the stake profile by the joint venture partners.

The funding for the project would be sourced from both the partners and debt and combination of booking amount collected from customers and contributions form the two investors in the SPV.

Meanwhile, SDL announced its financial results for the third quarter ended December, which witnessed a 49 per cent growth in the net profit at Rs 45.6 crore against Rs 30.6 crore for the corresponding period last year.

Its turnover for the quarter also marked a 77 per cent increase to Rs 298.6 crore from Rs 168.9 crore in the corresponding quarter of the previous fiscal.

For the nine-month period ending December 31, 2006, Sobha Developers net profit surged 85 per cent to Rs 99.6 crore from Rs 53.9 crore compared to 2005-2006 financial year. The turnover, during the same period, registered a growth of 92 per cent to Rs 830.6 crore from Rs 431.6 crore a year earlier, said the company spokesman.

The key driver for the company's growth has been demand in the construction space, both from residential and contractual segments, the spokesman said. SDL added Dell International, BF Utilities Ltd and Gold Star Plus to its customer portfolio.