In a recent development, the Puravankara group bought a 25-acre plot in Bengaluru from Unitech. The company is currently facing a financial crunch and sold this plot for approximately Rs. 200 crore.
Located in north Bengaluru, this plot was a major of huge landbank that was owned by the Unitech group to construct residential units. The reputed southern firm, Puravankara, finalized the deal and plans to construct a commercial property on the plot in order to expand its presence in the industry.
The sources close to the development said that the agreement is to acquire 25 acres, but only 12.5 acres have been acquired till now as the remaining land is in the clearance stage. The Puravankara group plans to develop 2 million sq ft of office space on the acquired land in the first phase.
The Company is focusing on the housing sector and plans to build 10 million sq ft of commercial and retail operations by 2023.
A source also said that the firm has 5 million sq ft that is either at design or construction stage. The idea is to create a platform for office assets.
The Puravankara group has already acquired land in Bengaluru, Mumbai, Pune and Hyderabad in order to expand its presence across India. In 2018, the company acquired 7.6 acres of land from Metro Cash & carry India in Bengaluru for Rs. 405 crore. This is said to be the biggest commercial land deal of the previous year.
On the other hand, Unitech had sold 74 acres in Gurgaon, Chennai and Hyderabad for more than Rs. 200 crore in 2017 to boost its cash flow and for the completion of its projects.
The Supreme Court in December directed to conduct a forensic audit of the Unitech Group to probe against the alleged fund irregularities and diversion of homebuyers’ money by the promoters and directors of the firm.