 "Big land deals return: Crompton Greaves sells 34-acre Mumbai land to Runwal for Rs 1,015 cr")
After a slump of nearly three years, real estate developers seem to be lapping up large land parcels across India as several corporates are putting their non-core assets on the block to reduce debts. These parcels can easily be converted to residential or office projects.
Crompton Greaves, which had put up its land at LBS Marg in the eastern suburbs of Mumbai for sale, has reportedly sealed the deal with Mumbai-based builder Runwal Group for Rs 1,015 crore.
The Runwal Group pipped several other top real estate developers like Lodha, Oberoi Realty, Mahindra Lifespaces and Kalpataru Group that were vying for the 34-acre land parcel.
The deal pegs the per acre land value at Rs 30 crore even though most real estate experts were valuing the land parcel around Rs 35-40 crore per acre, CNBC-TV18 reported.
Meanwhile, ET Now reported today (13 August) that Gammon India too has sold a64-acre land parcel in Dombivli to the Runwal Group for Rs 320 crore.
In July, Prestige Estates Projects bought an eight-acre plot of prime land in south Bangalore for Rs 345 crore from engineering and electronics conglomerate Siemens while Mumbai’s Lodha Group bought an 87-acre parcel in Thane, near Mumbai, from Clariant Chemicals (India) for Rs 1,154 crore.
Earlier this year, Oberoi Realty bought Tata Steel’s 25-acre land parcel in Borivali for Rs 1,155 crore.In June, the late nuclear physicist Homi Bhabha’s iconic bungalow in south Mumbai’s Malabar Hill was auctioned by the National Centre for the Performing Arts (NCPA) for Rs 372 crore to an unnamed buyer. In March,Tata Housing acquired a seven-acre land parcel in Thane from KEC International for Rs 225 crore.
Property advisory firm Cushman and Wakefield expects land deals worth Rs 8,000 crore this year as several corporates with debt on their books have been selling assets in the recent past to reduce their debt burden.