L&T Realty Ltd, a wholly owned unit of engineering giant Larsen & Toubro Ltd, has agreed to sell its entire 51% stake in a township project to real estate private equity firm Pragnya Group.
The deal for the stake in L&T South City Projects Pvt. Ltd is worth Rs 190 crore ($28.7 million), Larsen said in a stock-exchange filing on Tuesday.
L&T South City is developing a 92-acre residential township in Siruseri, Chennai.
The transaction is likely to be completed by the end of March, Larsen said.
The statement said that Pragnya South Opportunity Fund and Pragnya Fund II, funds managed by the PE firm, bought the stake.
Focused on India and Sri Lanka, Pragnya Group invests across residential, commercial and industrial real estate in Tier I and II cities. According to its website, it prefers to comes at an early stage in the project development cycle and collaborate for land acquisition and approvals. However, it is open to reviewing investment opportunities across different stages of the project cycle.
Pragnya Group and L&T Realty have collaborated for many projects over the years. The PE firm has investments in L&T Tech Park and L&T Eden Garden. Its portfolio also includes residential project Hazel in Chennai, Habitat Crest in Bangalore and Genexx Towers and Exotica in West Bengal.
L&T Realty, which has a strong presence in southern and western Indian markets, has been selling its stakes across projects lately. VCCircle reported last year that Blackstone Group, one of the largest owners of commercial real estate in India, bought into a retail-cum-commercial project of L&T Realty in one of the biggest transactions of the year. The PE giant had also shown interest to acquire some of the ongoing projects of the developer in Hyderabad.
L&T also sold its retail property – Elante Mall – in Chandigarh to Carnival Group last year.
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