Shares of DB Realty climbed more than 4 percent intraday Friday, in addition to 4 percent rally in previous session after its subsidiary started development of residential project near Bandra Kurla Complex in Mumbai.
"MIG Bandra Realtors & Builders Private Limited, a subsidiary of DB Realty, has undertaken development of land spread across 20,150 square meters (approximately 5 acres) situated near the Bandra Kurla Complex (BKC) area," said the Mumbai-based realty company in its filing.
The company has received the requisite approvals from the Municipal Corporation of Greater Mumbai (MCGM) and other authorities. It said the demolition of the buildings has commenced on July 2 and it will commence construction immediately after the process of demolition is completed.
The built up area of the project is in excess of 2.6 million square feet, it added. The project also has received height approval for construction of a 29 storey tower from the Airport Authority of India.
The company had entered into development agreement with MIG Co-operative Housing Society for development of the land on October 31, 2010. It has invested an amount of Rs 340 crore till now in the project.
DB Realty said the project, designed by Architect Hafeez Contractor, will be launched on October 14, 2015 and is planned to be completed within 39 months. Substantial revenues are expected to accrue to the company over the next 4 years, it added.
Media report suggested that DB Realty has entered into an agreement with Radius Developers to jointly execute this redevelopment project, wherein the company will hold 51 percent stakeand the rest will be with Radius.
Additionally, Conwood DB JV has agreed with Man Vastucon LLP for the development of land admeasuring approximately 59,700 square meters within the jurisdiction of Mira Bhayander Municipal Corporation. DB Realty holds 90 percent stake in Conwood DB JV and Man Infraconstruction has 99.90 percent shareholding in Man Vastucon LLP.
"Man Vastucon will undertake the development of the property primarily for residential housing and share the gross realisations with Conwood DB JV in the agreed ratio," said DB Realty.
At 11:09 hours IST, the scrip of DB Realty was quoting at Rs 66.60, up Rs 0.80, or 1.22 percent on the BSE.