Is Bandra catching up with Central Mumbai?
Real estate arm of Writer Group buys 2-acre land at Rs 200-cr for mixed use, signalling a surge in the suburbs. Sachin Dave reports.india Updated: Dec 03, 2012 20:49 IST
In a major real estate deal that values Bandra West almost at par with Central Mumbai, Writer Realty, a real estate arm of the diversified Writer Group, has bought a two-acre land parcel in the heart of Bandra for Rs 200 crore.
The company — which runs varied businesses from logistics to travel and hospitality — has said it now plans to use the land parcel for residential mixed-use development.
“The funds used for the purchase were raised through internal accruals and we are planning to launch a luxury project by next year. The land parcel is in the heart of Bandra near Pali Hill,” Gavin de Souza, joint managing director, Writer Realty said. The company refused to divulge the name of the seller.
Sources however say that the seller is a high networth individual but HT could not confirm his name.
Real estate deals in Mumbai have dried out and this deal is looked upon as a revival of land deals in the metropolis. Writer group, which has a couple of other projects in Mumbai, mainly luxury buildings used for renting out to rich foreigners, has also invested Rs 300 crore outside Mumbai in a hospitality project.
The hospitality project—Hilton Shillim — spread over 320 acres is built amidst a sprawling 3,500-acre plot that Writer group owns.
“The investment is made by Writer group apart from the land and Hilton would be managing the property,” Rajinder Prabhakar, director of marketing, Hilton said.
The 3,500 acres in Shillim, located about 200 kms from Mumbai, is part of a conservation land owned by Writer, said the company official. The company is also looking to construct 25 villas and sell it for around R8 crore each in Shillim by the 2013.
According to market estimates, Writer can earn at least R500 crore revenues from its Bandra project.