A consortium of three Kolkata-based developers – Sureka Group, Merlin Group and JB Group – has acquired 100 per cent stake in the special purpose vehicle Keppel Magus Development Pvt Ltd at an estimated ₹150 crore.

Keppel Magus Development was set up for the development of an upmarket residential-cum-commercial project, Elita Garden Vista, at the satellite township of New Town, located on the north-eastern fringes of the city.

Keppel Magus Development was previously held by Keppel Land of Singapore, Magus Estates & Hotels Ltd – subsidiary of Asian Hotels (North) Ltd of the Jatia Group – and Puravankara Group from Bangalore. 

Acquisition cost

“There was a part cash payment, and a part was adjusted with the debts of the special purpose vehicle. The new SPV will be called Elita Gaarden Vista Pvt Ltd,” Pradeep Sureka, Director, Sureka Group said.

Of the ₹150-crore acquisition cost, around ₹120 crore was made in cash while ₹30 crore is the debt component taken over by the consortium. The acquisition was made on July 2.

Sureka Group, Merlin Group and JP Group are part of the co-promoters of Kolkata’s South City projects, one of the upscale residential apartments, mall and school facilities in southern Kolkata.

Law firm Fox Mandal and chartered accountancy firm SK Agarwal & Co acted as advisors to the acquisition.

Phased development

According to Sureka, the consortium will invest approximately another ₹350 crore in the project.

While the first phase, comprising 650-odd apartments, is nearly complete and ready for possession, work on the second and third phases is expected to begin soon.

The second phase will see around 850 apartments while the third phase will mostly have commercial space. The entire facility is expected to be operational in the next four years.

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