Acquisition of sole proprietorship

All the assets can be acquired by the company. Since the Company is separate legal entity, assets should be transferred to Company name. Otherwise it will not be possible for company to sell/transfer those assets.

So, the nature of those residential properties (after transfer) will become as if the Pvt Ltd. company is making residential accomodation (like quarters by banks) for its directors and/or employees, right?

You are right, Company can use the property for the purposes which are permitted by the local municiple authority.