L&T Realty exits from Chennai township projects.

L&T Realty Limited has sold its stake in L&T South City Projects, which is building a township project at Chennai, for an estimated amount of Rs. 190 crore.

The company has executed a share purchase agreement for the sale of its 51 per cent stake in L&T South City Projects Private Limited to Pragnya Group, an investment firm.

L&T South City Projects is engaged in the development of a 92-acre residential township at Siruseri, one of the IT hubs of located at Old Mahabalipuram, Chennai.

Limited scalability of the business in the project for L&T Realty Ltd was the rationale behind the sale, said the company.

The networth of the SPV was Rs 134.05 crore as on March 31, 2016.

The buyer Pragnya Group is an investment firm with a focus on fund management, property development and asset management.

The Group has been involved with L&T South City Projects and the development of the Siruseri project since its inception.

BS