Lodha Developers has acquired the US Consulate-owned Washington House in the posh Altamount Road area in Mumbai for Rs 342 crore.

Lodha beat three rival developers including Mahindra Lifespaces and Tata Housing whose bids ranged around Rs 300 crore, which was far below the reserve price of Rs 350 crore fixed by the consulate.

Realty broking and consultancy firm DTZ which advised the deal, said the building in the super premium residential area is likely to be redeveloped as prime residential apartments.

Washington House, which measures 2,712 sq m, has no building norm restrictions and can be redeveloped as residential apartments. It is listed as a Grade III property and falls under the Coastal Regulation Zone II. The plot has a road reservation of about 293 sq m.

Aniruddh Wahal, Co-head, Investment Advisory, DTZ-India said the consulate had owned and maintained this property since over the last half-decade.

DTZ said that in sharp contrast to the prevailing trend, this deal reflects the continuing interest of buyers in premium areas such as South Mumbai and Bandra, even as apartments stockpile as inventories across the country, and the developers remain under pressure.

This is a deal that follows closely on the heels of the recently concluded other acquisition by Lodha in Southern Mumbai where they reportedly paid $500 million for a mill land parcel, originally purchased by India's largest developer DLF.

The US Consulate had put two properties, Lincoln House and Washington House, for sale in the month of June last year, with a reserve price of Rs 850 crore and Rs 350 crore respectively for Lincoln and Washington.

Altamount Road, also home to many Bollywood celebrities and even Mukesh Ambani’s residence Antilla, is situated in the area. It is among the costliest 10 addresses in the world.

> bindu.menon@thehindu.co.in

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