Key Agreement Highlights
- Developer’s Role: The entire project, including construction, development, marketing, and sales, will be managed by the developer at its own cost.
- Landowner’s Revenue Share: Texmaco Infrastructure, as the landowner, will receive:
- 44% of base revenue
- 62% of incremental revenue
- 62% of other charges and incomes
- Security Deposit: An interest-free refundable security deposit of ₹200 crore will be provided by the developer in two tranches, with a five-year refund period after receiving the Occupancy Certificate (OC).
- Investment Commitment: The developer's promoters will invest ₹375 crore in the project.
- Revenue-Sharing Mechanism: The agreement includes an escrow mechanism for revenue sharing.
- Project Timeline: The development is expected to be completed within 74 months.
Purpose of the Agreement
The primary objective of this agreement is to:
- Develop a mix of residential, commercial/retail, and community service personnel (CSP)/economically weaker section (EWS) units.
- Facilitate the sale of apartments/units on a revenue-sharing basis.
- Define the rights and obligations of both parties in the execution of the project.
Corporate Implications
- Texmaco Infrastructure will continue as the landowner and will not assume any development or construction costs.
- The agreement does not impact the management and control of Texmaco Infrastructure.
- There is no issuance or transfer of shares between the parties.
This agreement represents a strategic move by Texmaco Infrastructure to leverage its land assets for significant revenue generation while mitigating development risks. Investors will be keenly watching the project’s progress over the next six years as it unfolds in one of Delhi’s prime locations.
