7 bidders in fray to buy out Bharat Mills

Seven leading developers are trying to acquire Bharat Textile Mills, which is touted to be the costliest deal in the history of National Textile Mills, the owner. HT reports

Seven leading developers are trying to acquire Bharat Textile Mills, which is touted to be the costliest deal in the history of National Textile Mills (NTC), the owner.

HT Image

The NTC declared Rs 750 crore as the reserve price for this 7.5 acre plot. The developers will bid via an online auction scheduled on August 4 6. The reserve price is approximately Rs 23,000 per sq ft.

“The realty market has improved and seeing the interest among developers, we are optimistic,” said K Ramchandran Pillai, chairman and managing director, NTC.

The bidders are DB View Infracon, Indiabulls InfraEstate, Peninsula Real Estate Management, Ahimsa Realtors, Perspective Realty, Videocon Realty and Infrastructure and Lodha Structure Developers.

Developers were selected for the bid after they gave a deposit of Rs 37.50 crore. Sumatinath Realty and Agro had expressed interest in the bid but were disqualified as they did not submit the deposit.

Of the last five mills, which have been sold, the highest amount was Rs 702 crore for the 17.5 acre plot at Lower Parel in 2005.