Sureka-Merlin-JB Group consortium acquires 100 pc shareholding at Keppel Magus

With an investment of over Rs 150 Cr with the deal signed on July 2, 2014, the consortium has attained a 100 percent shareholding at KMD, thus taking over total ownership control in the company and its operations in its up-market 25 - acre project Elita Garden Vista in New Town, Kolkata.

The reputed law firm Fox Mandal and the esteemed chartered accountancy firm S. K. Agarwal & Co acted as advisors to this transaction. The consortium partners have over 50 years of combined experience in real estate having delivered over 20 million square feet of quality development across real estate categories like residential, commercial and retail.

  Pradeep Sureka, Director, Sureka Group, said, "We were comfortable dealing with Keppel Magus because of their commitment to quality and customer satisfaction. It fits our group core values of delivering quality products and dealing with transparency and fairness".

The consortium has acquired KMD as an “ongoing entity” and plans to execute Phase II and III of the Project covering about 13 lakh sq.ft which will comprise of multiple towers (between 15 – 32 storeys) and 1.6 lakh sq ft of developed commercial space, besides speeding up the remaining few deliveries from Phase I. A total of around 850 (2BHK and 3BHK) apartments are slated to be constructed in Phase II. The project will have modern amenities for the residents including a lavish green area, multi-level clubhouse and swimming pool, and various sports and entertainment facilities.

“New Town, as one of the first townships of its kind, has started to grow at a fast pace. The construction quality of the project is of high-quality. The second phase has a huge opportunity for value engineering. Our team has studied the market over the past year and identified the best way to offer a better product in the market. We have made some design changes which we feel will delight the buyers and investors and make the project even more appealing” said  Sushil Mohta, Managing Director, Merlin Group.

"With the efforts of the Government, New Town is finally coming of age. The infrastructure is superior to the older parts of the city and offers a modern living experience to residents. Property values are expected to rise here. The location is fantastic with a six- lane Expressway leading to it. There is excellent social infrastructure around the project location- schools such as DPS Megacity, hospitals such as TATA Medical Centre, and malls and offices such as City Centre II and Ecospace.” he added.

KMD was previously held by Keppel Land of Singapore, Magus Estates & Hotels Ltd – subsidiary of Asian Hotels (North) Ltd of the Jatia Group, owner of Hyatt Regency in New Delhi and Four Season Resorts in Goa and Puravankara Group from Bangalore. After completing Phase I of the project Elita Garden Vista, the group decided to divest 100% of its stake to Sureka, Merlin, JB consortium.

"Our group of developers have a strong financial foundation and real estate knowhow", said  Rajendra Bachhawat of JB Group. "Being debt free, we have enough strength in the group balance sheet to fund the 13 lakh sq ft development."

In addition to the Kolkata Project, Sureka Group and Merlin Group are jointly developing 15 lakh sq ft of residential space in Orissa in two projects - Springville Homes and Springville Greens. Individually, they have projects in Hyderabad, Chennai, Raipur and Ahmedabad.