Suraj Estate Developers jumps over 5% after company settles pending litigation with OLV and OLPS Society

Suraj Estate Developers shares jumped over 5% on Wednesday after the company announced it has amicably settled a pending litigation with OLV and OLPS Society.

The company has also filed consent terms enabling the development of a property admeasuring 7,625.73 square metres. As per the consent terms, the company agreed to pay to the landowner a consideration of about ₹47 crore and additional flats to OLV and OLPS Society which admeasures about 3,300 square metres.

This leaves the company with a built-up area of 10,813.63 square metres including fungible floor space index (FSI) for sale amounting to a gross development value (GDV) of ₹350 crore, it said in a release.

The company also stated that it won a bid for obtaining development rights of land component admeasuring 4,790.76 square metres with five existing buildings. The FSI to be consumed for rehousing the 108 existing tenants/occupants of the said buildings is estimated to be 6,688.90 square metres. After handing over surplus area to the Maharashtra Housing and Area Development Authority (MHADA), the balance built-up area for sale available to the company is estimated to be a minimum of 6,467.52 square metres with a GDV of about ₹225 crore, it said.

Suraj Estate Developers develop real estate across the residential and commercial sectors in south central Mumbai region. The company has a residential portfolio located in the markets of Mahim, Dadar, Prabhadevi and Parel.

Since incorporation, the company has completed 42 projects with a developed area of more than 10.46 lakh square feet in the south-central Mumbai region. In addition to the completed projects, the company has 13 ongoing projects with a developable area of 20.34 lakh square feet, according to a release.

Shares of Suraj Estate Developers have risen over 6% since the beginning of the year. The stock has recorded just over 5% gain in the last one year.