Bangalore-based real estate firm Mantri Developers is replacing Maytas Properties, the Satyam group firm that was building Jubilee Hills Landmark along with ICICI Venture and Nagarjuna Constructions Company. The project was stalled after the founder of Maytas Properties and the erstwhile Satyam Computer Services, Ramalinga Raju, got embroiled in an accounting fraud. According to the new deal, Mantri will get 40 per cent of the revenues from the project, Economic Times reported, citing sources.
“The real estate company will need to deposit Rs 130 crore, which will be used for construction and will be adjustable against the revenue. The property has over Rs 150 crore of non-performing loan on it,” one of the sources said. Sushil Mantri, managing director of Mantri Developers, had earlier said that his company is looking at a possible tie-up for the property. “We have concluded the due diligence and may buy entire stake or become an additional partner to the project,” he had said, without sharing details of the deal. Nagarjuna Constructions Company refused to comment on the transaction. Mantri Developers said the legal process was still on.
Originally, Maytas, Nagarjuna Constructions and ICICI Venture held 33 per cent each in the special purpose vehicle that was developing the Jubilee Hills Landmark project. The three companies had bought the 5.7 acres of land for the project from the state government for Rs 335 crore in 2006, which is still the most expensive real estate deal in Hyderabad. “Originally scheduled to be completed by the end of 2008, there has been no progress. However with the new partnership, construction will now start in the next two-three months,” said a senior official from one of the partner companies, who also added that there might be a few changes in the project too. Mantri Developers has significant presence in Hyderabad and has over 8 million sq ft under various stages of construction across different residential, commercial and retail projects.