Sobha Developers Sign JV Deal in Coimbatore with Lakshmi Machine Works(LMW)

Sobha Developers Partners with LMW for Coimbatore Apartments. Lakshmi Machine Works (LMW) announced a joint venture with Sobha Developers for a residential apartment project on LMW’s land in Coimbatore. Sobha Developers Sign JV Deal in Coimbatore with Lakshmi Machine Works(LMW) to develop residential project.

This news follows through on LMW’s plans mentioned in their 2012-13 Director’s Report to explore real estate development. Sobha Developers will handle the design, development, and construction of the apartments.

Project Details:

• Location: LMW land in Coimbatore
• Completion: Expected by financial year 2015-16
• Stake: Sobha Developers – 70%, LMW – 30%
• Investment: LMW to invest Rs 165 crore

Market Reaction:

• Sobha Developers’ stock price rose 0.95% on the news.
• LMW’s stock price remained relatively unchanged.

Additional Information:

• This project marks LMW’s entry into the real estate sector.
• Sobha Developers will hold a majority stake and contribute development expertise.
• LMW will provide the land and contribute capital.

This joint venture signifies both companies’ strategic moves: LMW capitalizes on underutilized land, and Sobha Developers expands its residential portfolio.