Reliance JV sells 20% in Bandra-Kurla Complex

October 12, 2006	(Be the first to rate this story!)  Loading ...
Print This Story   Email This Story Subscribe Newsletter

MUMBAI: Mukesh Ambani’s Reliance Group and its joint venture partner, Maker Group, have sold 20% stake in a prime real estate development at Bandra-Kurla Complex to private fund Xander Real Estate Partners.

Insiders estimate that Xander, founded and managed by Siddharth Yog, may have paid around Rs 600 crore to pick up 10% each from Reliance and Maker.

Yog was unreachable for comment but a source confirmed that the deal had been done. With Xander paying about Rs 20,000 per sq ft, the deal values the project at Rs 3,000 crore. Experts say that the price is lower than that prevailing in the area.

“The current rate in BKC for an A grade commercial tower is upwards of Rs 25,000 per sq ft and for a retail mall, it will be much higher. The location of the project also commands a premium due to easy accessibility,” said a real estate fund manager.

Apart from Xander, it is believed that the Maker Group is also selling about 80,000 sq ft of space to a few investors who have partnered the group in several of its earlier projects.

The 20-acre property on the edge of the Bandra-Kurla business district was a drive-in cinema when Reliance teamed up with the Maker Group last year to build a complex which included a service apartment, shopping mall and others.

The state government land was leased out to Maker, who ran the cinema for over two decades. The site, which is estimated to cost about Rs 1,500 crore to develop, may also house Mukesh Ambani’s first city retail store and some of Reliance’s offices.

The land, which has a total developmental potential of over 15 lakh sq ft, was valued at Rs 7,500 a sq ft when the deal was inked.

Source:http://timesofindia.indiatimes.com/articleshow/2153873.cms

News Published Under:   Real Estate India, Mumbai |

Comments