TCM has signed a memorandum of understanding (MoU) to develop a premium villa project in Kalamassery, Ernakulam, through a new joint venture. The project will be located in Thrikkakara North Village and will be developed on 250 cents of land, equivalent to approximately 2.5 acres.

The proposed partnership brings together TCM, Asset Homes and investor Suhas Nandan. TCM will contribute the project land, while Asset Homes will manage construction and execution. Nandan will provide the working capital required for development through a loan to the proposed special purpose vehicle (SPV).

The parties intend to establish a separate entity, Asset TCM Estates, to implement the project. Nandan will provide at least Rs. 250 mn as working capital, with the loan carrying an annual return of 20 per cent, compounded yearly, over three to four years from the date of disbursement. He will also subscribe to a 1 per cent stake in the SPV.

After repayment of the loan, Nandan will transfer his shares to the other partners at face value. Asset Homes will oversee the full development cycle, including design, conceptualisation, statutory approvals, construction, branding, marketing and the handover of completed units to buyers.

The parties intend to execute a detailed shareholders’ agreement covering board composition, shareholding arrangements and dispute resolution. TCM said the parties were not related to one another, meaning the transaction did not qualify as a related-party transaction under Securities and Exchange Board of India disclosure rules. The disclosure was made under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The MoU sets out broad commercial terms, which will be replaced by definitive agreements. The parties are expected to sign the detailed agreement after finalising the arrangements.