Newly Established Residential Real Estate Construction Company Equity Stake For Sale in Chennai, India

Products & services:
1. Joint venture (JV) redevelopment projects:
Redevelopment of existing apartment sites into modern residential complexes.

2. Premium residential apartments (end product):
- 2BHK / 3BHK units in prime urban locations.
- Designed for modern living with amenities and optimized layouts.

3. End-to-end project execution services:
- Legal structuring (JDA/POA).
- Design, approvals, and compliance.
- Construction management and quality control.
- Sales and customer closure.

Who uses them:
1. Landowners / existing flat owners:
- Individuals or associations with older apartment properties.
- Seeking to maximize land value without upfront investment.

2. Homebuyers (end customers):
- Mid to upper-middle-class buyers.
- Prefer prime locations with new construction and amenities.

3. Investors (silent / strategic):
- Individuals or partners seeking structured real estate returns.
- Interested in short-to-mid-term capital appreciation.

How they use them:
1. Landowners:
- Enter into JV agreements.
- Contribute land/UDS.
- Receive newly constructed flats and enhanced value.

2. Homebuyers:
- Purchase units during construction phases.
- Pay via milestone-based payments.
- Benefit from early pricing and location advantage.

3. Investors:
- Fund construction or early-stage development.
- Earn returns through profit share or structured payouts.
- Exit at project completion or sales closure. 1. Physical (tangible) assets:
- Office & administrative assets (existing)
- Office premises (Alandur, Chennai – owned / low-cost setup).
- Office equipment: Computers, printers, furniture, and communication systems.

Project execution assets (for the project – not owned yet):
- Temporary site infrastructure (site offices, storage setups).
- Construction-related tools and equipment (owned / contractor-supported).
- Material inventory (cement, steel, fixtures – project-specific).

The investor will not be given a stake in any of the physical assets and will only receive the project returns.

2. Intangible assets:
Development rights (core asset):
- Joint Development Agreements (JDA).
- Power of Attorney (POA) rights from landowners.
- Rights to develop and sell the developer’s share of the constructed area.

Brand & reputation:
- Established brand in Chennai.

Strong goodwill among:
- Landowners.
- Homebuyers.
- Local brokers.
- Referral-driven business pipeline.

Project pipeline:
- Secured and potential redevelopment opportunities.
- Ongoing negotiations with landowners.
- Future monetizable projects.

Work-in-progress (WIP):
- Ongoing project developments (capital deployed in construction stages).
- Current WIP includes ~₹6.5 Cr project and ~₹25 Cr worth projects.

Receivables:
- Customer receivables from booked units (construction-linked payments).
- Advances due from buyers across ongoing projects. Facilities & infrastructure:
Operational setup:
The company operates from its own registered office in Alandur, Chennai, strategically located within its core development market, enabling close monitoring of ongoing projects and faster coordination with stakeholders. The investor will not be given a stake in this property.

Fully functional office supporting:
- Project planning and coordination.
- Legal documentation (JV, POA, approvals).
- Sales and customer management.
- Vendor and consultant coordination.

Project execution infrastructure:
- Unlike traditional manufacturing businesses, infrastructure is project-based and scalable, deployed at each development site.
- Site offices established for every project.
- Dedicated engineering and supervision teams.
- On-site material storage and logistics setup.
- Safety and quality monitoring systems.

Development capacity:
- Total built-up delivered: 3.5+ lakh sq. ft.

Project scale:
- Small: 5,000 – 10,000 sq. ft.
- Mid-size: 15,000 – 35,000 sq. ft.
- Large: 50,000+ sq. ft.

Typical building configuration:
- Stilt + 2 to Stilt + 5 floors, with plans for scaling up.
- Optimized for urban residential redevelopment.

Facilities within projects:
Each project is designed with practical, value-driven amenities:
- Stilt car parking.
- Lift access (as applicable).
- Power backup provisions.
- Water management systems.
- Security features.
- Efficient common areas.

Land & ownership model:
- Primary model: Joint venture (JV).
- Land is contributed by property owners.
- Development rights secured via JDA / POA agreements.
- No land inventory holding → asset-light model.

Rental / lease details.
Office premises:
- Operates from an owned / low-overhead administrative setup (Alandur).

Project sites:
- Temporary site infrastructure (non-leased long-term assets).
- No heavy fixed lease liabilities → high capital efficiency.

Key advantage:
- Asset-light, high-rotation model.
- Minimal fixed infrastructure cost.
- Maximum capital deployed into value-generating projects. Capital structure & funding:
Current funding model:
The business is primarily funded through a combination of the promoter’s own capital and banking facilities, ensuring financial flexibility and controlled leverage.

Promoter contribution:
The majority of project funding is supported through internal accruals and promoter investments, reflecting strong commitment and aligned interests.

Bank funding (working capital):
- Overdraft facility: ₹1.95 crores.
- Utilized for working capital requirements and project cash flow management.
- Enables smooth execution during construction and sales cycles.

Debt position.
- Total outstanding debt: ₹1.95 crores (OD facility).
- No long-term structured debt burden.
- Maintains a low-leverage, high-efficiency financial model.

Revenue-linked cash flow model:
Construction is funded through:
- Customer advances (construction-linked payments).
Internal funds.
- Short-term banking support (OD).

Ensures:
- Reduced dependency on external debt.
- Strong liquidity during the project lifecycle.

Shareholding structure:
- Number of shareholders: 2 (50-50 owenrship split)
(Equal ownership with active involvement in business operations and decision-making)

Financial strengths:
- Asset-light JV model (no heavy land acquisition cost).
- Controlled debt exposure.
- Strong promoter skin in the game.
- Ability to scale with minimal capital strain.