Sunteck Realty Limited and Transcon Enterprises (TE) have now mutually decided to cancel the Joint Development for the development of the proposed project in Andheri (West).
“The development of the project has not commenced hence there is no revenue contribution from the same. The transaction is not a related party transaction,” the company said in a regulatory filing on Tuesday.
Suntech had announced on September 17, 2019, that it has acquired a prime project near Mumbai’s Lokhandwala, Off New Link Road, Andheri (West) with the potential for development of approx. 1.1 mn sq.ft in saleable area and a revenue of over Rs2,500cr in the next 4-5 years.
The project was acquired under the asset light Joint Development Agreement (JDA) model focused on establishing a strategic tie-up with credible partners, which will further strengthen the cash flow and balance sheet of the company.
The company and its subsidiary viz. Sunteck Property Holdings Private Limited (SPHPL) have also retired as partners from Yukti Infraprojects LLP [Special Purpose Vehicle (SPV)], wherein the Company and SPHPL together had 50% interest and balance 50% was held by Transcon Sheth Creators Private Limited and Transcon Bellaria LLP collectively.
“As on date, the SPV is yet to commence operations and hence there is no revenue contribution from the SPV. Further, the capital contribution contributed by the Company has been received in full. The transaction is not a related party transaction,” it added.
Sunteck Realty Ltd was trading at Rs346.00 per piece up Rs1.15 or 0.33% on the BSE.