LMW joins hands with Sobha Developers for apartment project

COIMBATORE: Moving from its core activities, textile machinery major Lakshmi Machine Works (LMW) today made a foray into the real estate sector, joining hands with realty major Sobha Developers. The two companies have also jointly launched a unique residential project in the city.

The 4.76 acre development offers 236 units of 1, 2 and 3 BHK configurations, ranging from 800 to 1,700 sq feet, priced between Rs 45 lakh to Rs one crore, P Ramakrishnan, deputy managing director, Sobha Developers, told reporters here. He said the project targets middle income to higher strata segment.

The project 'Elan' is designed in such a way that 20 per cent of its units would accommodate BHK, 50 per cent in 2 BHK and the balance in 3 BHK, the works for which would begin soon and are expected to be completed by 2016, he added.

Asked about the stake of both the companies in the joint venture, Ramakrishnan said Sobha, which is foraying into the apartment segment, will have 70 per cent stake and LMW will have the remaining 30 per cent. The latter provided the land and made an investment of Rs 165 crore.

On its foray into the housing sector, R Rajendran, Director, Finance, LMW said it has acquired two companies and wanted to utilise urban surplus land it has for housing projects as the demand for houses was increasing in and around the city.

The company has nearly five more acres in its possession under the industrial category, he said, adding that it has written to the government seeking conversion to residential plots after which more projects would be taken up.