MUMBAI: Realty developer Kanakia Group has acquired a 2.5-acre land parcel in the Kanjurmarg suburb of Mumbai from Windsor Realty , a joint venture between Gopal Narang and Rajan Raheja. The developer has paid about Rs 125 crore for the land parcel that was sold through a bidding process recently. The deal has been concluded and was registered last week.
The land parcel used to house a factory of battery-manufacturer Exide Industries until it was bought by Windsor Realty to develop a premium residential project.Exide itself had got control of the land by acquiring the industrial and manufactu ring units of Standard Batteries from Cosepa Fiscal Industries as a going concern.
“We are getting the land parcel along with approvals in place for a residential project. We are planning to change the development plan slightly, secure approvals for the same and launch the project in the next six months,” Kanakia Group chairman Rasesh Kanakia told ET, while confirming the transaction.
An email query to Windsor Realty remained unanswered till press time. Transaction advisor JLL India confirmed the deal, but declined to share further details. Windsor Realty was earlier planning to launch a premium residential project -Windsor Sky Gardens -with a configuration of two, three and four bedroom apartments.
According to real estate experts, in an otherwise sluggish property market, the deal has been concluded at a good price in line with ongoing rates for land parcels in and around Kanjurmarg.The land parcel has total development potential of 5 lakh sq ft, while property prices in the vicinity range between .`13,000 and 14,000 per sq ft.
The deal is one of the few land transac tions on outright basis, given the ongoing trend of joint ventures and joint development agreements. Most developers are currently preferring to enter into development pacts rather than outright acquisition of land parcels, considering the liquidity crunch and slow property market.
With both partners -Gopal Narang and Rajan Raheja -at Windsor Realty being at loggerheads, this is the second land parcel that has been sold by the company to another developer.
