Solitaire Group, through one of its subsidiaries Honest Vastunirman, has acquired an over 20-acre land parcel in Mumbai’s Andheri suburb from Arogya Bharti Health Parks and Arogya Bharati Hospitals for nearly Rs 550 crore. The total consideration includes 140 residential tenements with carpet area of nearly 38,000 sq ft to be constructed by the developer and to be handed over to the seller within six years of the conveyance deed.
As part of the total consideration, Honest Vastunirman has paid Rs 230 crore each to Arogya Bharati Hospitals and Arogya Bharti Health Parks. The company has paid stamp duty charges of nearly Rs 33 crore for the registration of the deal that took place in June, showed documents accessed through CRE Matrix.
In February, Bai Kabibai & Hansraj Morarji Charity Trust, one of the oldest public charitable trusts in the country, had sold its nearly 23 acres of land to Arogya Bharati Hospitals and Arogya Bharti Health Parks for a total consideration of Rs 539.83 crore. Honest Vastunirman has acquired the 20-acre land parcel from this plot.
Out of the 23 acres, over 3.81 acres has been encroached upon and declared as a slum. As per the agreement, the development rights for this slum area have been transferred to a company, Supra Estate India. The transaction has received approvals from court as well as from the office of the charity commissioner.
Arogya Bharati Hospitals and Arogya Bharti Health Parks already held development rights over nearly 15 acres of total 23 acres. They have transferred the rights for nearly 2.5 acre of this to Khubchandani Hospital, which has built a hospital building on the land and has secured the occupation certificate.
Transactions for land parcels have started to gather pace again with many deals including outright acquisitions and joint ventures in key property markets of Mumbai, Pune, Chennai, Hyderabad, and Bengaluru either being closed or expected to close soon.
The ongoing upcycle in the housing market segment is prompting more real estate developers to opt and propose residential developments on their land parcels that are already part of their land bank or are being acquired now.
Out of the total 2,181 acres of land transacted between January 2022 and May 2023, around 84% or 1,822 acres has been allocated for proposed residential developments, showed data from JLL India.
Most land parcels acquired by the developers across the country in the last 18 months have been added to their residential development pipeline and is an indication of augmented capex utilisation aimed at clocking higher sales in the upcoming quarters.