Cinevista hits 10% upper circuit on approval for development of residential project with K Raheja

Opening the trade higher at ₹21.47 a piece on NSE, the stock gained 9.99% to hit an intraday high at ₹21.47. At this level, shares of Cinevista Ltd were locked at their upper circuit.

In an exchange filing on August 29, Cinevista said the project named ANTARES in Mumbai’s Kanumarg has received the required RERA registration.

This development follows the registration of the joint development agreement between the two companies on May 29, 2023.

The marketing team of K. Raheja Corp. will begin sales for Tower 'A' of the project immediately. Sales for Tower 'B' will start at the later stages, the filing added.

According to the joint development agreement, K Raheja Corp Real Estate owns 75.5% of the project with Cinevista Ltd owning the remaining 24.5%.

The arrangement also comprises a ₹70 crore interest-free refundable security deposit from K Raheja Corp to Cinevista.

The property parcel is expected to offer a total development potential of more than 500,000 square feet of built-up area, including an extra 35% fungible floor space index (FSI).

The project is set to be completed within the next five years.

The total development of over 5.6 lakh sq. ft. at ANTARES is anticipated to be worth more than ₹446 crore. This includes the developer's and land owner's shares, as well as premiums and deposits to be paid.

The project is being developed on a 15,817.48 square meter plot in Kanjurmarg, which Cinevista had previously held as a capital asset. Cinevista purchased the property piece in 2003.

The developer plans to construct a luxury housing project on the land parcel.