Murugappa Group’s NBFC Cholamandalam Investment & Finance Company bought about 5 acres of land in Guindy, Chennai, from DLF on Wednesday at a cost of ₹735 crore.
The transaction is reported to be one of the largest deals in recent months.
The company, in a stock exchange filing, said that it has purchased an immovable property from DLF IT Offices Chennai Private Ltd. measuring 4.67 acres of land situated at Nos. 18 & 18/1, Velachery Main Road, Guindy, by executing and registering a sale deed.
It is gathered that Murugappa Group may build a corporate office for Cholamandalam or Tube Investments, or for both on the site.
Sources told businessline that DLF decided to monetise the asset given that it has other strategic commercial assets in Chennai, such as the upcoming Downtown in the IT corridor. The company faced some environmental and security restrictions for the development of this particular land as both the governor’s residence and Guindy National Park were located in close proximity, sources said.
DLF originally acquired this property from Madras Race Club in 2018 following a long legal ordeal.
Cholamandalam’s scrip closed at ₹1,048 per share, down 1.6 per cent on the BSE on Wednesday.