Suratwwala Business Group Limited, a listed real estate and infrastructure development company, has announced the execution of a Sale Deed and a Development Agreement cum Power of Attorney (DAPA) for the redevelopment of a housing project located at Prabhat Road, Pune. The disclosure was made to both the BSE Limited and the National Stock Exchange of India Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, categorised as a project update.

The development marks a significant milestone in the company’s real estate portfolio, strengthening its presence in one of Pune’s most prominent and premium residential micro-markets. Prabhat Road is widely recognised for its central location, high residential demand, and strong real estate valuation trends, making the redevelopment project strategically important for Suratwwala Business Group Limited.

Overview of the Transaction

As per the disclosure, Suratwwala Business Group Limited has formally executed two critical legal instruments to enable the redevelopment:

1. Sale Deed, and

2. Development Agreement cum Power of Attorney (DAPA)

These agreements collectively provide the company with the rights, authority, and commercial framework required to undertake redevelopment of an existing housing property situated on a total land parcel measuring approximately 11,250 square feet.

The transaction involves multiple individual counterparties, all of whom are existing landowners or residents associated with the property. The structure of the transaction reflects a common and well-established redevelopment model used in urban real estate projects, particularly in cities like Pune and Mumbai where land availability is limited and redevelopment offers significant value creation opportunities.

Details of the Sale Deed

Under the Sale Deed, Suratwwala Business Group Limited has purchased an aggregate 25% share of the plot/land from three individual parties. This partial land acquisition provides the company with direct ownership interest in the property, strengthening its economic stake and control over the redevelopment.

The total consideration paid under the Sale Deed amounts to INR 9.60 crore (Rupees Nine Crore Sixty Lakhs only). This amount has been paid to the existing residents or landowners who have agreed to sell their respective share in the property. The acquisition of land share is a crucial step that enhances the feasibility and bankability of the redevelopment project.

The execution of the Sale Deed ensures that the company has legally enforceable rights over a portion of the land, which, when combined with the DAPA, enables seamless execution of the redevelopment.

Details of the Development Agreement cum Power of Attorney (DAPA)

In addition to the Sale Deed, Suratwwala Business Group Limited has entered into a Development Agreement cum Power of Attorney (DAPA) with three individual landowner parties. Under this agreement, the company has been authorised to undertake the redevelopment of the housing project on the agreed land parcel.

The DAPA outlines both monetary consideration and area-based consideration to be provided to the existing landowners. Specifically:

• A monetary consideration of INR 3.00 crore (Rupees Three Crores only) has been paid to the existing residents.

• In addition to cash consideration, the company has agreed to provide three flats in the newly constructed project to the landowners after completion of redevelopment.

This combination of cash and constructed area consideration is typical in redevelopment arrangements, allowing landowners to benefit from upgraded residential units while enabling developers to unlock higher saleable area and project profitability.

Nature and Size of the Redevelopment Project

The redevelopment project covers a total land area of approximately 11,250 square feet. Post redevelopment, the total free saleable area, excluding flats allotted to landowners, is estimated to be approximately 55,000 square feet. This saleable area will form the primary revenue-generating component of the project.

The company has indicated that the expected total revenue from the project is approximately INR 100–110 crore, based on indicative management estimates. This revenue potential is subject to prevailing market conditions, pricing dynamics, regulatory approvals, and the final configuration of the project.

The scale of the projected revenue highlights the strategic importance of the redevelopment for Suratwwala Business Group Limited, particularly in the context of expanding its real estate development portfolio in high-demand urban locations.

Project Timeline and Execution

As per the disclosure, the project will be executed in accordance with the timelines agreed under the Sale Deed and DAPA. While specific completion dates have not been publicly quantified, the company has stated that the redevelopment will be completed within the agreed contractual timeframes.

The execution of the project will be subject to obtaining statutory and regulatory approvals, including but not limited to:

• Commencement certificates

• Building plan approvals

• Local municipal permissions

• No Objection Certificates (NOCs) from relevant authorities

Such approvals are standard requirements for redevelopment projects and will be secured as and when required during the project lifecycle.

Regulatory Compliance and Governance

Suratwwala Business Group Limited has clearly stated that none of the promoters, promoter group entities, or group companies have any interest in the entities or individuals awarding the contract or entering into the agreements. Furthermore, the transaction does not fall within the purview of related party transactions.

This declaration reinforces the company’s adherence to strong corporate governance practices and transparency norms. By making timely disclosures under SEBI Regulation 30, the company ensures that investors and market participants are fully informed of material developments affecting its business operations.

The disclosure has been formally signed by Ms. Pooja Thorave, Company Secretary & Compliance Officer, underscoring its authenticity and regulatory compliance.

Strategic Importance of Prabhat Road, Pune

Prabhat Road is one of Pune’s most established and sought-after residential locations. Known for its proximity to commercial hubs, educational institutions, healthcare facilities, and cultural landmarks, the area commands premium real estate valuations and sustained demand.

Redevelopment projects in such locations offer multiple advantages, including:

• Higher realisation per square foot

• Strong end-user and investor demand

• Faster absorption of residential units

• Long-term appreciation potential

By undertaking redevelopment at Prabhat Road, Suratwwala Business Group Limited positions itself to capitalise on these favourable market dynamics while contributing to urban renewal and improved housing infrastructure.

Business Impact and Growth Outlook

The execution of the Sale Deed and DAPA aligns with the company’s broader strategy of focusing on value-accretive redevelopment projects in urban centres. Redevelopment projects typically involve lower land acquisition risks compared to greenfield developments, while offering higher margins due to efficient land utilisation.

The estimated revenue potential of INR 100–110 crore from this single project indicates meaningful contribution to the company’s future topline. Successful execution may also enhance the company’s track record, enabling it to secure similar redevelopment opportunities in the future.

From an investor perspective, such project announcements provide visibility into the company’s project pipeline, revenue prospects, and strategic direction.

Market and Investor Perspective

For investors tracking Suratwwala Business Group Limited (SBGLP) stock, this disclosure is a positive indicator of business momentum. The announcement demonstrates active project execution rather than mere project planning, which is often viewed favourably by the market.

Clear communication regarding project size, structure, revenue potential, and governance aspects helps reduce information asymmetry and supports informed investment decision-making.

Conclusion

In summary, Suratwwala Business Group Limited has executed a Sale Deed and Development Agreement cum Power of Attorney for the redevelopment of a housing project at Prabhat Road, Pune, marking a significant step in its real estate development journey. The project involves acquisition of a partial land share, structured cash and area-based consideration to landowners, and an estimated revenue potential of INR 100–110 crore.

Disclosed under SEBI Regulation 30, the development reflects the company’s commitment to transparency, regulatory compliance, and strategic growth through high-value urban redevelopment projects. As execution progresses and regulatory approvals are obtained, the project is expected to contribute meaningfully to the company’s financial performance and long-term value creation.

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