A 37-acre sprawl in Bhandup-one of the largest land parcels in Mumbai-belonging to the defunct engineering firm Guest Keen Williams (GKW) will be jointly developed by the landowner and real estate company Mahindra Lifespaces.The sale value of the project, which will be of mixed use composition (residential, retail and offices), has been pegged between Rs 8,000 crore and Rs 11,000 crore, said a source in know of the deal.The property owner, industrialist K K Bangur, had been trying to sell the land for the past few years. However, there was no taker since the price quoted was a steep Rs 2,500 crore. “No buyer wanted to pay this price outright for Bhandup, although the plot is just outside the railway station and touches LBS Marg,” said the source.
Ultimately, the owner decided to enter into a joint development agreement with Mahindra Lifespaces.
However, a source said the term sheet for the joint development was recently signed and that the developer had paid a “large deposit” to the owner. The developer will be able to sell about 40 lakh sqft of carpet area. The current price in Bhandup is around Rs 22,000-24,000/sqft.
“It will take eight to 10 years to complete this project. The owner will receive a share in the profits, while the developer will procure all permissions and pay for the construction and the premiums,” said the source.
Space on the plot will be reserved for public amenities like a public park, a municipal school, a playground and a cultural theatre.
In 2005, GKW had sold a portion of the Bhandup plot, about 22 acres, to the Neptune Group for Rs 92 crore.