NEW DELHI: Bengaluru-based builder Sobha Ltd has signed an MoU with pipe manufacturer Indian Hume Pipe Company to develop a residential group housing project on the company's industrial land at Delhi's Badarpur area.
In a filing with BSE, Indian Hume Pine Company said that it has signed a Memorandum of Understanding with Sobha Ltd., a developer of repute having pan India operations, for the development of Company's industrial land at Badarpur, New Delhi, admeasuring about 27,504.78 sq. mtrs. equivalent to 2,96,062 sq. ft. for Group Housing Residential project as per applicable laws (the said Land) on May 14, 2015.
Property advisory firm JLL India was the transaction advisor for the deal.
With this MoU, Indian Hume Pipe Company has also given a limited Power of Attorney to Sobha Ltd., for obtaining all permissions, sanctions and approvals including conversion of the said land.
MoU points out that a formal agreement for development of the land will be signed between the two companies closer to the date of conversion of the land at Badarpur close to the border of Delhi and Faridabad from industrial to residential.
Once the development agreement is signed, the revenue generated from the sale of developed property will be shared in the ratio of 48.50% to Indian Hume Pipe Company and 51.50% to Sobha Limited.
The Indian Hume Pipe Company will bear the cost of converting the land as well as other land related charges while Sobha Limited will bear and pay all development and other project related costs.