Shriram Properties to net around Rs32 crore from Standard Motors machinery

Venkatachari Jagannathan
18 October 2006

Chennai: The Bangalore-based Shriram Properties Limited is expected to net around Rs32 crore from e-auctioning the plant and machinery of the defunct Standard Motors.

Interestingly it was the amount at which the machines were valued prior to the auction. Speaking about the auction-the country's first of this kind, perhaps even in the world- S Yogeshwaran, director, Matex Net Pvt Ltd says, "There were more than 800 bids from 80 parties. Competition was severe in most of the lots."

The auction has thrown up a new business opportunity for Matex Net. "As the machines were auctioned in lots, some of bidders want to sell certain unwanted items. We are now looking for buyers for them."

With two phases over — receipt of earnest money deposit and 25 per cent of the bid money from the successful bidders — the next step is setting up of the weighbridge at the site. According to Yogeshwaran, vacant possession of the 58 acres land will be given to Shriram Properties in four months.

For Shriram Properties has had a handsome realisation as its cost of acquisition will come down drastically from Rs154.10 crore. The company will be developing the Standard Motors land as a special economic zone (SEZ) for the information technology (IT) sector in joint venture with the US-based Sun Apollo fund. Sun Apollo has been formed between the Delhi-based Sun group promoted by the Khemkas and the US-based equity fund management group as a joint venture between.

A new company, Shriram Properties and Infrastructure Limited, has been formed for that purpose. The Rs2,500-crore project will have a total built up area of around 5.3-million sq.ft. According to reports, apart from the SEZ the project includes a 5-star hotel, a mall and serviced apartments.