Mafatlals sell Mumbai mill land for Rs 605 crore

After over five years of efforts, the Mafatlals, one of India's old textile families, finally managed to sell land at one of their defunct mills in Mumbai.

The 7.63 acre (30910 sq meter) plot in the Byculla-Mazgaon locality in south Mumbai has been sold to the Ajay Piramal group for Rs 605 crore.

The Mafatlals were expecting to get more than Rs 1,000 crore from the sale of the land and the reason for this downward revision is still unknown.

The board of Mafatlal Industries had on May 9, after prolonged negotiations with prospective buyers, accepted the offer of Gliders Buildcon LLP of the Ajay Piramal Group for development of the land.

In pictures: How Tirupur's weavers are making a name in global economy

This was cleared by the company's shareholders on June 16 and the company closed the deal on June 17.

"The transaction with Gliders Buildcon LLP has been completed," Mafatlal Industries said in a regulatory filing to the stock exchanges. The company's stock closed at Rs 198 with a gain of 0.58 per cent.

This land is part of a 14.5 acres leasehold property allotted by the city collector to Sassoon Spring & Weaving Company (now Mafatlal Industries) for a 99-year lease in 1913. The lease is till August 2012 and the city collector wanted the land back to augment space for expansion of the nearly Byculla Zoo.

However, Mafatlal Industries of the Arvind Mafatlal group, which owned the loss-making mill managed to work out a deal by agreeing to surrender 50 per cent of the land to the state. It retained ownership over the remaining part of the land, which has now changed hands.

A residential and commercial complex is expected to be developed shortly by Gliders Buildcon LLP, which is yet to unveil the detailed plans.

This month also witnessed two large real estate deals in the NCR and Delhi.

On June 2, Ambiance Developers purchased 17.63 acres in Gurgaon from the Aricent Group for Rs 206 crore. The land is located on the Old Gurgaon Highway and is close to the prominent Gurgaon One residential project. The deal is touted as Gurgoan's largest corporate land disposition.

Besides, a South Delhi bungalow was sold for Rs 170 crore to a city-based industrialist, possibly making it one of the biggest residential realty deals in the national capital. Monnet Ispat owner Sandeep Jajodia is reported to have purchased this bungalow for family use.

Courtesy: Mail Today