In the biggest property transaction in the last two years, the Wadhwa Group on Monday purchased an 18.18-acre plot in Ghatkopar for Rs 571 crore.
The plot, owned by Hindustan Composites Limited, is located on LBS Marg. The defunct industrial unit will now be converted into a posh residential complex.
In August 2009, Lodha Developers had bid for the 10.3-acre Finlay Mills for Rs 710 crore, but the landowner NTC rejected it on the grounds that the mill could fetch more. The last big deal before this was in 2007 when the Mumbai Metropolitan Region Development Authority sold three plots totalling six acres for Rs 2,790 crore.
Vijay Wadhwa, chairman, Wadhwa Group said it was a favourable deal. “We feel we have paid the right price considering the location and size of the plot,” Wadhwa said, adding that Indiabulls Realty Ltd would fund Rs 300 crore of the deal.
The Wadhwa Group started demolishing the defunct factory on Monday itself. Work will begin in February.
The complex will have 11 high-rises with apartments starting at Rs 8,500 per sq ft and each being 1200 sq ft, which means a flat will cost at least Rs 1 crore.
“There is great demand in the residential market and considering that it is located in Ghatkopar, the Wadhwas will make a neat profit,” said Anuj Puri, country head and managing director, Jones Lang LaSalle Meghraj.