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Phoenix Mills group to sell Rs 300-crore Kurla property

Company in talks with 2-3 buyers, hopes for Rs 15,000 per sqft for the commercial property.

mumbai Updated: Jan 30, 2012 01:01 IST
Sachin Dave and Rachit Vats

Phoenix Mills, a real estate company, is in talks for selling a 2 lakh sqft (approximately 4.6 acres) commercial property in Kurla, valued around Rs 300 crore. The BSE-listed company owns Phoenix Market City —spread over 25 acres in Kurla — through Offbeat Developers, a subsidiary company.

“We are in talks with 2-3 buyers for sale of property. We expect a price of around Rs 15,000 per sqft. We may opt to sell the property to more than one buyer,” said Gayatri Ruia, development director with Palladium, a mall brand promoted by Phoenix.

According to the company, the property in Kurla commands a rental of Rs 100-300 per sqft. Though unwilling to share the names, the company said that the buyers include those who want to use the property or give it on lease.

Phoenix Mills along with HBS Realtors, Mumbai, and Pradhan Housing, Hyderabad, hold 80% share in Offbeat Realtors while IL&FS, Edelweiss and NPC Capital, a German investor, hold the remaining 20%.

The 25-acre plot was bought in 2006 for Rs235 crore. The total cost of the under-construction Kurla property is pegged at Rs1,550 crore. The sale of the property is in line with the group’s expansion plans. The company is expanding its reach at seven locations in tier-2 and tier-3 cities through joint ventures.

Phoenix has also cancelled its earlier plan of building a Rs 350-crore five-star hotel in partnership with Marriott International. The hotel, housing 250 rooms, was to be built over a 3lakh sqft area. “We are revising our plans to set up Marriott Hotel as there is a slump in the hospitality industry. A commercial property would be constructed in its place,” said Ruia.

The company has also cancelled its agreement with Adlabs Cinemas for a 15-screen multiplex in Kurla.

“We were comfortable with PVR which runs a multiplex at Phoenix mall in Lower Parel. So, we decided to continue our association with them instead,” said Ruia.

First Published: Jan 30, 2012 00:59 IST