Financial Daily from THE HINDU group of publications
Friday, Jul 22, 2005
Industry & Economy - Real Estate & Construction
2 NTC properties sold for Rs 862 cr
Mumbai , July 21
PRICES of Mumbai mill properties have gone through the roof, with the latest two properties on the block going for a total of Rs 862 crore.
Indiabulls Real Estate Company Pvt Ltd, part of Indiabulls Financial Services, was the highest bidder at Rs 441.75 crore for the NTC South Maharashtra Elphinstone Mill.
There were five bids in all for the eight-acre property. When contacted, an Indiabulls official refused to comment on the sale.
Kohinoor CTN Ltd was the highest bidder at Rs 421 crore for the Kohinoor Mills No 3, NTC North Maharashtra property.
There were three bids in all for this 4.6-acre plot located opposite Sena Bhavan.
The other bidders were Varun Industries with a bid of Rs 411 crore and Akruti Nirmaan with a bid of Rs 289 crore.
The Elphinstone Mill has been under litigation since 1983. The sale will depend on the outcome of the court judgement. The original writ petition initiated by the owner had challenged the nationalisation of the mill. The mill is closed and its machinery has been sold off. Employees were given VRS packages.
The bids on the current properties have exceeded expectations, according to real estate consultants.
Mr Joygopal Sanyal, Head (Western Region), Consulting and Land Agency, Chesterton Meghraj, said that the current bid price of Rs 421 crore for Kohinoor mill land has pushed the per sq foot price to Rs 15,000 from the previous mill land sale when the price was Rs 7,600 per sq foot.
He added that the property was likely to be developed for commercial purposes, retail units, or individual stores, as it was located very close to an important suburban railway station, Dadar. However, it was unlikely to house a mall.
He said that while expectations were that the property would attract bids of up to Rs 350 crore, the current bid had considerably exceeded this mark. The property represents a built-up space of 2.70 lakh sq ft.
However, he admitted that a fair market value would be much lower than the price currently quoted on the Kohinoor property.
For the Elphinstone Mill property, the Rs 441-crore bid places the per sq ft price at 5,500-6,000 while it was earlier expected that it would go for Rs 3,500-4,000 per sq ft price.
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