National Textile Corporation sells Bharat Mills land at Worli, Mumbai for Rs 1503 crore to Indiabulls InfraEstate

Sunday, August 8, 2010, 19:33 by Business Editor

India’s costliest realty deal: An acre for Rs 188 crore

In a real estate deal that has created history, the National Textile Corporation has sold eight acres of land at its Bharat Mills at Worli in Mumbai for a huge Rs 1503 crore. The largest ever realty deal meant that one acre was sold for a whopping Rs 188 crore.  Indiabulls InfraEstate Ltd emerged winner of the bid to seal the deal after it quoted a price of Rs 1505 crore.

While Lodha bid for the land with a quote of Rs 1503 crore, Peninsula had bid with a Rs 1409 crore quote.  Tatas came fourth in the bids after they came up with a quote of Rs 1263 crore. Others who had bid for the property include Oberoi and Videocon.

Incidentally, the sold out land is the one which the Maharashtra government had been eyeing for its affordable housing scheme. Though the state government had offered to pay Rs 750 crore for this land, NTC had then declined the offer.

With the property now in its hands, Indiabulls will be charting out its next course of action towards delivering a world class product in Mumbai. This is the second in the series of costly buys for Indiabulls as the company had earlier during the week, won another deal by paying Rs 198 crore for an acre of Podar Mills. The 2.39 acre mills went for Rs 474 crore.

The latest has proved that the e-auction route is the best tool in realty sale. While Lodha Structure Developers Pvt Ltd, which quoted Rs 1503 crore came second after a neck-and-neck fight while Peninsula Real Estate Management Pvt Ltd finished third with a quote of Rs 1409 crore, it added.

For NTC, the deal has come about as a windfall. The PSU is now looking at pumping in a good amount of money received as part of the sale into its modernisation efforts.  NTC is currently on path to bringing in a transformation and make it a profit-making venture.

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