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realty developer Prestige Estate Project‘ Assistant Prestige Projects has acquired a prime sea front land parcel near Marine Lines and Charni Road in South Mumbai From DB Realtysubsidiary of Marine Drive Hospitality and Realty for over Rs 704 crore. The plot is valued at over Rs 306 crore per acre in the deal, placing it at the top of the list of costliest land transactions anywhere in the country.
DB Realty initially planned to develop a 125-storey luxury hotel on the plot. The plan was later revised in favor of a luxury residential project with two towers, which remained a non-starter.
before this, edelweiss The Asset Reconstruction Company had attempted to auction the said land parcel to recover the loan and interest of Rs 473 crore. Edelweiss ARC had last year taken possession of the plot owned by Marine Drive Hospitality, a subsidiary of DB Realty, after it failed to repay a loan of Rs 439 crore.
Edelweiss ARC had taken possession of the plot after the developer defaulted on the loan IFCI and Central Bank of India.
After this transaction, DB Realty has utilized the money paid Prestige Projects To repay the creditors.
The buyer has also taken over certain debt obligations of DB Realty and thus all the lenders have released and recovered the security interest created in the said property. Hence, there is no encumbrance, mortgage or security interest on the said property as per the agreement obtained through CRE Matrix.
DB Realty acquired the land in 2005 from a local real estate developer as part of a redevelopment project. The proposed hotel project was abandoned after being embroiled in issues relating to approval for a higher floor space index, which is the proportion of permitted development. on a plot.
According to reports, the plot was being developed jointly by DB Realty and Pune-based Panchsheel Realty, but work on two high-end luxury towers planned by the latter was stuck early last year due to non-payment of loans .
Prestige Group is planning to develop two luxury residential towers on this plot overlooking the Queen’s Necklace and the Arabian Sea. With this, the group will further expand its presence in the luxury sector of Mumbai, said Tariq Ahmed, CEO, West India, Prestige Group.
ET’s email query to DB Realty remained unanswered at the time of writing.
before this, Prestige Estates Projects had made two strategic acquisitions to acquire complete ownership of two flagship projects of DB Realty in central Mumbai’s Bandra-Kurla Complex (BKC) and south Mumbai’s Mahalaxmi area by buying the remaining stake for a total of over Rs 1,176 crore.
The BKC project has a potential gross leasable area of 2.79 million sq ft of Grade A office space, while the project at Mahalaxmi has a potential gross leasable area of 2.9 million sq ft of Grade A office space.
Both the projects at BKC and Mahalaxmi are currently under construction and are expected to be completed in the next 3-4 years.
Industry experts believe that the ongoing market consolidation in favor of large and established developers will gain further momentum due to their superior execution ability and access to liquidity.
Land parcel transactions have started picking up again in key property markets of Mumbai, Pune, Chennai, Hyderabad and Bengaluru with several deals including outright acquisitions and joint ventures either closed or expected to close soon Is.
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