Rai Saheb Rekhchand Mohota Spinning & Weaving Mills (RSR) has entered into joint venture agreement (JVA) with Armors Developers for the multi-use development project with an estimate value of Rs 300 crore. The development project spread over-2 acres with total development targeted of 3,33,000 square feet will be completed over 18 months starting October 2017 through Special Purpose Vehicle (SPV).
The company has passed the resolution for setting up of a SPV for the development projects. The land is located in a posh area near Nagpur Metro Railway station Project which is expected to attract further investments from businesses and corporates.
RSR will only contribute land for the project and Armors would contribute towards development, marketing, administrative and selling expenditure. RSR would yield 45% of the total saleable value of the project estimated at Rs 300 crore at current market prices. The proceeds will be transferred from SPV to the balance sheet post the completion of the project and can be deployed for making the company debt free and cash rich in the medium to long term.
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Arvind | 315.10 |
Welspun Living | 149.90 |
Alok Inds | 27.30 |
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