Hotelier puts Rs 2K-cr project on block
Hotelier Sanjay Narang is looking to net Rs 500 crore to Rs 1,500 crore by selling off a major share in his mixed-use project on 10.5 acres near the Sahar International airport in Andheri.mumbai Updated: Apr 30, 2012 01:49 IST
Hotelier Sanjay Narang is looking to net Rs 500 crore to Rs 1,500 crore by selling off a major share in his mixed-use project on 10.5 acres near the Sahar International airport in Andheri.
The Rs 2,000-crore project has a Waterstones hotel, club, serviced residences and offices, and is owned through a special purpose vehicle by Mars Enterprises Group, a company headed by Narang.
Narang, chairman, Mars Enterprises Group, confirmed the sale plans but refused to comment on the buyers.
“We are looking at divesting a stake of anywhere between 26% and 74% to the right strategic/financial investor,” Narang said.
Waterstones hotel, club serviced residences and offices will be operational by 2014 and the forecasted operating profit would be approximately Rs 220 crore per annum, according to company estimates.
The company is learnt to have given the mandate to Edelweiss for the project. Industry experts say the property could be valued at anywhere around Rs 2,000 crore, depending on the location and sales projection.
"The typical real estate project in Mumbai gets around 8 to 10 times the valuation of expected annual profits. However, in real estate deals, valuation also depends on the land parcel and if the property is litigation-free and has got all permits,” a PE head of an international consultancy said.