Shasun Pharmaceuticals has sold its Velachery land for Rs 29 crore, according to information provided by the company to the stock exchange.

Real estate market sources say the property on the main road has been purchased by the ITC Group. The group, which is putting up the multi-star luxury hotel property the ITC Grand Chola in Guindy, is likely to use the Velachery property for support facilities.

Shasun company officials said that the property of about 24,000 sq.ft (over half an acre) was surplus land available with the company. Its R&D facility had originally been located there but was subsequently moved out. The funds from the transaction, which is in the final stages, will be utilised by Shasun for debt reduction and related purposes.

However, the company declined to name the buyer. A Director in Shasun has been authorised to handle the transaction, the official said.

Real estate market sources said Velachery is fast developing as an upper-middle and high-end mixed-use locality with residential properties ranging from Rs 6,500-7,000 a sq.ft and going up to more than Rs 10,000 a sq.ft. The locality has also attracted five-star hotel and mall development by leading developers.

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