In a bid to consolidate its land holdings around New Delhi, the realty division of Media Videotech has spent Rs 67 crore (Rs 670 million) in acquiring four realty companies with big land holdings in the National Capital Region.
Acquisition of three of these firms is for a total consideration of Rs 45 crore (Rs 450 million) pending approval by the Bombay Stock Exchange and the National Stock Exchange.
The companies that are being acquired are Acacia Buildwell, VAlerian Property Developers and Beechtree Buildcon. These acquisitions will allow the compnay to gain control of Rs 200 crore (Rs 2 billion), 400,000 sq ft IT park project in Gurgaon and has acquired additional land for the project at a cost of Rs 45 crore (Rs 450 million).
On Monday, the company acquired another realty company, Smart Buildwell for a consideration of Rs 22 crore (Rs 220 million) in an all cash deal. With this acquisition, Media Videotech gains control of a Rs 160 crore (Rs 1.6 billion) residential township in Bhiwadi in the NCR, with a total saleable floor space of one million sq ft.
The housing project is at a prime location on the Bhiwadi-Alwar Road and will be targeted towards those working in and around Gurgaon as the demand for residential apartments in this region has risen sharply, company sources said.
Once the acquisitions are approved, Media Videotech will own land worth Rs 262 crore (Rs 2.62 billion). The company is currently sitting on two construction projects worth Rs 380 crore (Rs 3.8 billion) and has set aside Rs 320 crore (Rs 3.2 billion) for future acquisitions, company sources said.
The company also has to develop an ambitious Rs 200 crore (Rs 2 billion) township project in Haryana for which it has purchased land worth Rs 40 crore (Rs 400 million).
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