Britannia plot sold for Rs 172 crore.

CHENNAI: Raising hopes of revival of the realty sector, which had been going through a slump for more than a year, city-based Sugal and Damani Foundation has purchased 8.6 acres of land in Padi from biscuit maker Britannia for Rs 172 crore.

This is the highest land transaction by value in the city this year. Apart from Sugal and Damani, three other companies have also invested in the property, said sources involved in the deal. The buyers are likely to convert the industrial land into residential use for promoting multi-storey apartments, said sources. Britannia had floated closed tenders for selling the property a year ago. "It was through a competitive bidding that we picked up the property. The deal was concluded a week ago," said a representative of Sugal and Damani.

Chennai saw quite a few big-budget land transactions, valued at close to Rs 2,300 crore last year. Xanders invested Rs 690 crore in Shriram IT SEZ, Landmark builders bought 14.16 acres from erstwhile Binny Mills for Rs 490 crore, Ceebros bought Atlantic Hotel for Rs 165 crore and Viceroys Hotels for Rs 480 crore and VGN bought 1.43 acres in Nungambakkam from Tata Communications for Rs 195 crore and 10 acres in Guindy from Hindustan Teleprinters for Rs 272 crore.

Many of them are under various stages of redevelopment. Local director of international realty consultant Jones Lang LaSalle, Kevin William Albert said,"After a one-year lull, market is showing signs of recovery by recording large land transactions".

Apartment sales have been showing signs of recovery in recent weeks, said industry sources. Ceebros, which launched an apartment project at the Atlantic site at Egmore last month, has priced it at Rs 15,000 per sq ft, much lower than what many other projects have been charging in the city in the past.

Source : timesofindia.indiatimes.com