K J Somaiya Trust sells 1.5 acre Sion plot to K Raheja Corp for Rs 120 crore

30 Sep 2022 , 09:01 AM

A public charitable organization called K J Somaiya Trust sold a land lot in central Mumbai’s Sion neighborhood to real estate developer K Raheja Corp for more than Rs120 crore. The parcel is over 1.5 acres large.

According to the terms agreed upon between the parties, the developer may even later purchase an additional 0.4-acre property parcel that adjoins this plot through a different transaction. K Raheja Corp will own about 2 acres of land in this location with the second tranche of the agreement.

The developer purchased the land parcel through one of its affiliated companies, Feat Properties, which recently paid a stamp obligation fee of Rs7.24 crore at the time the deal was registered.

The land tract is a piece of a larger 11.5 acre area that was once a part of the Wadia Mahal property and was conveyed to K J Somaiya Trust in 1962. Although the land lot is part of the salt pan division, there are no official directives restricting the use of the property.

According to the Maharashtra Public Trusts Act, 1950, the trust has already obtained the Charity Commissioner’s approval for the move in April of this year. According to the text of the agreement that was retrieved through Indextap.com, no further authorization from any government agency is necessary for the same, and there are no restrictions on the transfer of the specified property.

The organization had requested proposals in February to sell 1.90 acres of freehold land that is a part of a larger Sion tract. Following this, K Raheja Corp and a total of 4 other organizations expressed interest in purchasing the plot by submitting bids.

Following an increase in the offer price during the second stage of the process, K Raheja Corp. won the bid as the highest bidder. On March 10, the developer and the organization signed a memorandum of understanding (MOU), and the Charity Commissioner’s approval was then obtained in April.

While the sale for the 1.5 acres of land has already been signed, another deal for the additional 0.4 acres will likely follow.

For roughly Rs200 crore, the developer had acquired the 30-acre property piece from Cabot Company in December 2015, whilst the 62-acre plot from Customary Industries had been acquired much later.

The variety of land offers has increased over the past two quarters amid a recovery in most real estate sectors, including residential, commercial, information technology, and even warehousing. According to CII-CBRE research, contracts for over 700 acres valued at $1.1 billion had been reached in major Indian real estate markets during the first half of 2022. Costs have increased as a result of the greater range of options and growing demand for land parcels.

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