Real estate major Unitech has ventured into the Mumbai market to develop around 80 acres, or 9 million square feet, in central Mumbai over the next five years. In a structured deal, Unitech— India’s largest real estate firm after DLF--has formed a 50:50 joint venture with a Mumbai- based company that has around 20 acres of land near the Bandra-Kurla Complex and is likely to acquire another 60 acres nearby.
Refusing to divulge further details, Sanjay Chandra, joint managing director, Unitech, said the combined investment to develop these lands would be around Rs 4,000 crore. “As part of a strategic decision we have decided to enter Mumbai, which will be our biggest exposure after the National Capital Region,” he said.
In the first phase Unitech will build 3 million sq ft, which will eventually be increased to 9 million in five years. The company will develop office complexes mainly. The project is likely to start in the next three-four months. Once the first phase is completed, rents will be around Rs 1,200 crore a year.
Besides commercial space, Unitech is also planning a residential complex in Mumbai. Sources said the company was in talks with leading Mumbai landowners and expected to close a deal shortly.
Unitech is one of the bidders for the Dharavi slum makeover, in which the Maharashtra government has tendered 300 acres of land divided into four areas of 75 acres each. The company has bid in consortium with the Salim Group of Indonesia.