Mumbai Textile Mill sets Rs702-crore record
21 June 2005
New Delhi/Mumbai: Delhi-based Jwala Real Estate Pvt Ltd's record bid of Rs702 crore has won it NTC's Mumbai Textile Mills' 17.5-acre real estate. This is the biggest ever realty deal in India and it could push up property prices in Mumbai.
According to analysts, as per the deal, the price per square feet is pegged at anywhere between Rs8,000 to Rs12,000, against Rs4,000 in the recent Jupiter Mill sell-off. Two more NTC mills - Elphinstone and Kohinoor are on the auction block..
In a separate deal, Mumbai-based Lodha Group won the tender for 7.5 acre of land with Apollo Textile Mills, another NTC property, by putting in a Rs180-crore bid.
In March this year, the NTC's 11-acre Jupiter Mills at Elphinstone Road had fetched Rs276 crore from financial services firm, Indibulls creating a turmoil in the property market. The bid for Mumbai Textile Mill is the highest ever and is much higher than the anticipated winning bid price of Rs400-550 crore.
Last month, a Supreme Court ruling allowed NTC to sell five of its defunct mill lands to retire outstanding debts of Rs1891 crore. The NTC has been trying to utilise its 300 acres of real estate situated at prime locations in Mumbai to repay debts and revive its remaining mills.