Realty developer Oberoi Realty has acquired an over 4.2-acre land parcel on LBS Marg in Mumbai’s central suburb Bhandup for Rs 115 crore. The developer has acquired the property through one of its subsidiaries Oberoi Constructions.
The company has acquired the land parcel after emerging as the highest bidder for the plot at an e-auction held by the Debt Recovery Tribunal.
The transaction was concluded and registered by Oberoi Constructions on November 25. The developer has paid stamp duty worth Rs 5.96 crore to register the deal, showed documents accessed through CRE Matrix, a real estate data analytics firm.
Currently, the land parcel falls in the industrial zone and the developer has acquired the plot along with the existing structure on the same.
The Debt Recovery Tribunal had conducted the e-auction on September 15 for recovery of debt from Industrial & Agricultural Engineering Company (Mumbai) Pvt Ltd. This company’s manufacturing unit on the said land parcel undertaking manufacturing of plant and machinery for chemical and agricultural industry had stopped the activity for more than 25 years.
The plot has a total residential development potential of around 8-9 lakh sq ft and based on the ongoing property rates, the project can fetch revenue of around Rs 900-1,000 crore.
ET’s email query to Oberoi Realty remained unanswered until the time of going to press.
In the backdrop of the increasing preference for alliances and joint development of land holdings, this will be one of the few instances of an outright purchase in recent times. Over the past few years, several realty developers have reworked their business strategies to focus on asset-light models, such as joint development, to reduce the upfront capital cost and cope with liquidity pressure.
Over the last few years, Mumbai’s central suburbs and neighbouring Thane’s micro-markets have been emerging as a new hotspot for residential developments. Several real estate developers have either acquired land parcels on an outright basis or have entered into agreements to jointly develop plots in this pocket.
Last year, billionaire investor and founder of DMart, Radhakishan Damani acquired an 8-acre land parcel in Thane from Mondelez India, formerly Cadbury India, for nearly Rs 250 crore.
In 2019, Oberoi Realty itself entered into an agreement to buy 60 acres from GlaxoSmithKline Pharmaceuticals in Thane for Rs 890 crore. In the same year, Singapore-based global investment firm Xander Group’s retail arm Virtuous Retail South Asia (VRSA) acquired about 20 acres in Thane from textile firm Raymond for over Rs 710 crore.
Godrej Properties acquired a 4-acre parcel on Thane’s Ghodbunder Road to develop a residential project in September 2018.