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HUL goes flat out to sell 25 Mumbai apartments

business Updated: Jun 11, 2009 22:15 IST
Lalatendu Mishra
Lalatendu Mishra
Hindustan Times
HUL goes flat out to sell 25 Mumbai apartments

Hindustan Unilever Ltd (HUL) is on a spree to sell several company-owned apartments in Mumbai. The subsidiary of consumer goods giant Unilever has put 25 residential properties on the block in Mumbai to liquidate unutilised real estate holdings and take advantage of high realty prices.

The flats are located in prime areas such as Malabar Hill, Carmicheal Road, Cuffe Parade, Church Gate, Bhulabhai Desai Road, Andheri, besides Vashi in New Mumbai.

Analysts say these properties command a premium over the prevailing market rates because of their special location, apart from the fact that they bear clear titles and have higher carpet areas compared with newer constructions.

The combined value of all the flats is roughly estimated at Rs 42 crore. In March, HUL had put up three flats in Malabar Hill with an estimated capital value of Rs 4 crore for sale. Though they have been sold, it is not clear how much they fetched.

“As part of normal business process we continuously review our assets including real estate and on a case-to-case basis we do sell idle property to unlock business value. This is an ongoing process,” said a HUL spokesperson.

Eighteen of these flats (fourteen 2 bedroom-hall-kitche and four 3BHKs) are in Navi Mumbai (New Mumbai). These are located on six amalgamated plots with a total area of 25,680 sq ft and a total built up area of 25,612 sq ft.

The whole property is to be sold as one single unit. These flats were lying unused for several years and were purchased from CIDCO, Maharashtra’s state-owned construction company.

Speaking of the Navi Mumbai property, Manohar Shroff, a leading local real estate broker, said several builders were eyeing the prospect of building a high-rise premium property where HUL’s flats stand now.

“While the reserve price is Rs 12 crore, this property could fetch over Rs 20 crore because of its size and future development potential,” he said.

Out of the remaining seven, five South Mumbai flats could command price of over Rs 38,000 per sq ft, and fetch about Rs. 20 crore, while two Andheri flats could yield Rs. 2 crore.

“It is a month-long process to find a buyer and to close the deals,” said Aditi Vijaykar, executive director, Residential Services, at property consulting firm Cushman & Wakefield, which is dealing with the sale of three flats.

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