Peninsula Land, Ashok Piramal Group’s realty company, has bought a defunct mill in Byculla, a Mumbai suburb, from joint owners Mahindra Lifespaces and the Kanoria family for ₹650 crore. Mahindra Lifespaces’ will get around ₹325 crore of the ₹650-crore sale. The company, which is also the real estate arm of the Mahindra and Mahindra group, had development rights on part of the property. It announced the sale in an exchange filing on Thursday. The Kanoria family entered into a joint venture with M&M to develop the land in 1995, after defunct mills in the State were opened up for development in 1991. Our Bureau

“The company, together with the owner of the property in Byculla, Mumbai has completed the sale of the property. The company's share of the sale consideration is ₹324.95 crore,” said the exchange filing.

While the Mahindra Lifespaces spokesperson declined to share details, Executive-Vice Chairman of Peninsula Land, Rajeev Piramal, said the company plans to develop a residential property over the land once all the approvals are in place, over the next 12 to 18 months.

“We have funded the acquisition through our internal accruals and funds from our private equity partner,” he said, however declining to give the financial break-up of the deal.

“We already have a considerable portfolio in central Mumbai and were looking to add more. We were scouting for a good opportunity and it has finally come in the form of this deal. The development potential of the land would be around five lakh square feet,” he added.

Real estate major Cushman and Wakefield, which was the advisor on the deal, is of the opinion that the market for realty deals would continue to be bullish going ahead, in the wake of the change in political climate and the positive changes expected by the industry.

Executive Managing Director, Cushman and Wakefield, South Asia, Sanjay Dutt said: “Deals such as this reassure us that there are still investment and capital seeking opportunities in Mumbai. The next six months, after the new Government takes over, should see more such investment opportunities.”

“Mumbai should see sales of between ₹7,000-8,000 crore this calendar year, of which at least ₹4,000-5,000 crore worth of deals are likely by December,” he added.

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