Prestige Group set to buy TVS’ Anna Salai property for Rs 600 crore
Chennai: Bengaluru-based Prestige Group is set to buy a major parcel of land stretching from Anna Salai to White’s Road for Rs 550 crore to Rs 600 crore from TVS Group’s Sundaram Motors.
A mix of high-class retail and office space is likely to appear on the 89-lot parcel on the road connecting Anna Salai to White Road, according to sources close to the project.
Sources said other Bengaluru developers including Brigid, Buravankara and Embassy were in the running but lost out to Prestige in the cash deal. It will take a minimum of 18 to 24 months to start developing a plot of 2.14 lakh square feet. “It’s a big expulsion and it will take time to work out the legal details,” the sources said.
Real estate sources have said that Sundaram Motors intends to sell or develop several major pieces of land it owns in Tamil Nadu. These include a large parcel of land near Ponamali and luxury properties in Madurai and Trichy.
It is a speculative development and we do not want to comment. “We also do not imagine putting other land up for sale,” said a member of TVS Group, who did not want to be identified.
But industry sources have confirmed that a group of southern developers have shown an interest in the Poonamali parcel and other company properties.
“These developers have a lot of money because they are backed by big multinational funds,” the sources said. Recently, multinational corporate funds such as Blackstone acquired assets worth over Rs 7 billion from Prestige Group. Like the Anna Salai deal, the other deals will be “all cash,” the sources added.