Realty firm Brigade Enterprises has emerged as the successful bidder for the joint development of over 6 acre land parcel owned by Yuken India at Whitefield, Bengaluru.
The joint development agreement would be executed shortly, the company said in a filing to the BSE.
Bengaluru-based Brigade Enterprises said, "The company is the successful bidder for the Joint Development of the property owned by Yuken India Ltd measuring 6 acres 14.982 guntas (25797 sq mts) at Whitefield Bangalore."
Separately, Yuken India said that the company's board has approved the proposal of joint development of its property with the Brigade Enterprises.
Yuken manufactures oil hydraulic equipment.
"The company intends to enter into a joint development with revenue sharing arrangement with Brigade Enterprises Ltd. The company is expected to realise maximum consideration at the prevailing market rate. The project is expected to be completed in 3-4 years from commencement after plan sanction," Yuken India said.
Yuken India will get 41.20 per cent of the total revenue. The land would be handed over to the Brigade in two phases -- the first being about 2 acres.
Giving rationale about entering in joint development agreement, Yuken India said the company was operating in a non-industrial location, surrounded by IT firms, commercial and residential buildings. The company also wanted better usage of prime land.
Last year, Brigade Enterprises entered into a joint venture with Singapore's sovereign wealth fund GIC to invest up to Rs 1,500 crore for developing housing and mixed-use projects in South India.
Brigade's share price fell by 3 per cent to Rs 156.10 apiece on the BSE, while Yuken India Ltd's share price surged by 20 per cent to Rs 312 apiece.