Tata Steel eyes Rs 1,000 cr from Borivili land sale; Lodha in race

Four years after Tata Steel shut its Borivli manufacturing facility, the company has put the 25-acre land parcel on the block and is looking to rake in about Rs 950-1,000 crore from the sale.

The company had asked buyers to submit expression of interest by Jan 3, based on which qualified participants will submit their initial offers for the property by Feb 10.According to a CNBC-TV18 report, builders Lodha Developers, Runwal Group and K Raheja so far have submitted expression of interest in the plot which earlier used to housethe company's steel wire production plan.

According to a Mumbai Mirror report,the land parcel has development potential of around 30 lakh sq feet. And going by prevailing rate of Rs 14,000 per sq ft for residential properties in the area, the plot has a potential of generating around Rs 5,000 crore.

 Tata Steel eyes Rs 1,000 cr from Borivili land sale; Lodha in race

Reuters

The sale is an attempt to monetise the company's land holding. The bidders who qualify would be given information memorandum and will have to deposit Rs 20 crore advance.

Property consultant Knight Frank India is in charge of the deal.

However, Tata Steel is yet to seek a no-objection certificate from the labour ministry for the transfer of property.

Tata Steel''s current debt stands at Rs 62,000 crore of which 60 percent is US dollar denominated. The company can save up to Rs 70 crore interest payment per year once the sale takes place.

In this space,the last large land parcel of 17 acres in Parel was sold by DLF to Lodha Group for R2,700 crore in 2012. Also, a six acre plot in Byculla was picked up by Piramal Group in 2013 for around Rs 650 crore.

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Updated Date: Dec 21, 2014 01:42:33 IST