Rs 250 cr bus depot redevelopment plan changes hands

Redevelopment of BEST’s Kurla depot will now be done by Mumbai-based Kanakia Spaces, instead of Delhi-based Parsvnath Developers that had originally acquired the rights, reports Naresh Kamath.

Redevelopment of BEST’s Kurla depot will now be done by Mumbai-based Kanakia Spaces, instead of Delhi-based Parsvnath Developers that had originally acquired the rights.

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Kanakia Spaces also own the Cinemax multiplex chain.

Parsvnath has exited this project by entering into a memorandum of understanding (MoU) effecting the changeover.

The transaction value is estimated above Rs 250 crore, according to market sources.

Parsvnath had won the tender for the project at Rs 42 crore in November 2006.

None of the parties revealed the exact amount. Senior officials at Parsvnath confirmed the deal but declined to comment further.

Similarly Vinod Doshi, head of marketing, Kanakia Spaces also declined to comment.

“We have nothing to say regarding this deal,” Doshi told Hindustan Times.

The 7.7 acre-plot is located on LBS road on the East and on the S G Bhave marg on the North side of Kurla (W).

The plot is significant as it is located at the intersection of two arterial roads connecting the central and western suburbs and is close to the Bandra-Kurla complex, which commands astronomical realty rates.

Parsvnath had won the tender process floated by the BEST Undertaking for planning, designing as well as constructing a modern bus depot.

Construction of staff quarters was also part of the project. The firm was allowed to build a commercial shopping complex in that parcel of land, thereby compensating it’s expenditure on the project.

This was under the scheme floated by the BEST undertaking to modernize its depots with private participation—where the latter constructs new depot and in turn is awarded some land to profit commercially.

Parsvnath had tied up with two saffron group managed funds and the whole project was being pegged at Rs 620 crores.

Interestingly, Parsvnath has also bagged rights to redevelop the one-acre Mahim bus station in 2007 for Rs 32 crore.

However, till date no work has been done due to litigation.

BEST Committee Chairman, Dilip Patel denied any knowledge of the deal.

“I will ask for the relevant papers and also study the tender conditions,” said Patel.

The last major land deal in the city was in January when Wadhwa Builders paid Rs 571 crore to acquire the 18,18 acres Hindustan Composite company at Ghatkopar.