Asia’s leading business space solutions provider Ascendas has emerged a front-runner for acquiring a 6.18 acre plot in Chennai for developing commercial space.

The land at Nandambakkam, near Chennai Trade Centre, belongs to Sravanna Properties, a subsidiary of a TVS group, managed by brothers Venu Srinivasan (CMD of TVS Motors) and Gopal Srinivasan (CMD of the new VC, TVS Capital Funds). The Singapore-based Ascendas has reportedly been short-listed by TVS along with a retail biggie, an educational institution and two parties from Mumbai and North.

As the first step for clinching the deal, TVS has signed a letter of intent with Ascendas. However, top sources on both sides declined to comment.

The deal has been hanging fire for quite some time and apparently TVS also hoped to realize a better value for the land in the event of State approving the second master plan for Chennai with higher floor space index (FSI).

Realtors have been anticipating relaxation in FSI to 2.5 from the current 1.5. Keeping this in view, TVS is said to have asked Ascendas to give two quotes, one with current FSI and another with a relaxed rule under the second master plan.

Ascendas is said to be doing a due diligence of the land. Sources in the know of the development said if the FSI is increased, then the deal would fetch Sravanna Properties about Rs 220 crore.

Sravanna Properties had fixed the upset price of the property at Rs 35 crore per acre. The company has been expecting a price realization of Rs 225 crore from the land. Originally, it was acquired by TVS-E in 1999 from ICL Foundries of India Cements for around Rs 10 crore.

A fresh lease agreement has to be drawn with the Defence authorities to handle the pathway problem, which has been hampering the deal progress. Currently, the road is maintained by TVS Electronics.

All the loose ends are likely to be tied up soon and the deal expected to fructify by August.