Eye Popping Deals In Commercial Space Mumbai - Indian Real Estate Forum

Aadesh · 13-11-07

Have a look at the RECENT DEALS IN COMMERCIAL SPACE IN MUMBAI

Fidelity Investments leases out 1,850 sq ft in Maker Chambers VI, Nariman Point, at Rs 450 per sq ft
KPMG leases out 30,000 sq ft in Kamala Mills compound in Lower Parel at Rs 275 per sq ft
House, Prabhadevi, at Rs 350 per sq ft
Avendus Advisors leases out 12,000 sq ft in IL&FS Centre at Bandra-Kurla Complex at around Rs 300 per sq ft
ABN Amro renews lease at Rs 500 per sq ft (from 180 per sq ft signed three years back) for 3,100 sq ft at Sakhar Bhavan in Nariman Point
Morgan Stanley leases out 12,500 sq ft of space in Peninsula Corporate Park at Parel at Rs 400 per sq ft
Three leases renewed at Dalamal House, Nariman Point, with sea-view, at Rs 430 per sq ft (up from Rs 130 per sq ft 3 years back)

- Business Standard (Nov 13, 2007)

Pinnacle · 27-11-07

Quote:

‘Result too large to display’. As phone calculators flashed this message, over two dozen people assembled outside the sixth floor conference room at the MMRDA headquarters scrambled to make sense of the mind-boggling bids for three plots in the Bandra-Kurla Complex (BKC) on Monday evening.

It took minutes of brain-wracking to finally realise that India’s biggest commercial land deal had just been struck, leaving the Mumbai Metropolitan Region Development Authority (MMRDA) richer by Rs 2,790 crore. TOI in its Monday edition had predicted that these plots would fetch nothing less than Rs 2,500 crore.

The three plots totalling barely six acres in size, are mainly reserved for commercial/office space and a car park. Bidders who won each of the three plots are Mukesh Ambani’s Reliance Industries, the Wadhwa Group and a joint venture between Purnendu Chatterjee promoted-TCG Urban Infrastructure and Hiranandani Group.

But what sent shock waves in the real estate industry was the phenomenal price quoted by the Wadhwa Group for plot no C-70 behind ICICI building in BKC. The less than two-acre land fetched Rs 831 crore or Rs 5.04 lakh per sq m.

This is almost two-and-a-half times the reserve price of Rs 1.53 lakh per sq m set up by the MMRDA. Wadhwa’s bid works out to Rs 46,800 a square foot. Real estate sector experts say this is by far the largest amount per square foot for the purchase of commercial property in the country. In comparison, the current property prices in the BKC for a finished office space is Rs 35,000 a square foot.

To put the stunning price paid in perspective, Wadhwas have paid well over Rs 400 crore an acre whereas Reliance Industries had paid a shade less than Rs 60 crore an acre for the last mega deal at BKC (in January 2006).

‘‘We paid this price because of the strategic location surrounded by garden from three sides. It is a peaceful environment,’’ said Vijay Wadhwa, promoter of the Wadhwa Group, in a late night SMS to this newspaper.

Earlier in the evening, Wadhwa told TOI that he is looking at a profit margin of about 10-15%. ‘‘We already have committed clients including multinationals and diamond merchants, who missed the bus in booking space in the upcoming Bharat Diamond Bourse in BKC. We will sell the building outright once its constructed,’’ he said.

‘‘We are not surprised by these rates. There is tremendous demand for good quality office space in BKC,’’ said Roopesh Kaul, chief operating officer of the Maker Group.

- Posted by prasoon; 27 November, 2007

A TCG-Hiranandani JV bagged the rights to develop plots C-54\55 (combined) when its bid of Rs 1,041 crore turned out to be the highest. The combine quoted Rs 3.67 lakh a sq m—much more than double the reserve price of Rs 1.53 lakh a sq m.
For plot C-66, which is about two-anda-half acres in size and reserved for car parking and a commercial centre, Reliance Industries’ bid of Rs 918 crore or Rs 3 lakh a sq m was the highest. It beat contenders such as Ashok Piramal’s RR Megha Properties (Rs 2.13 lakh a sq m) and Delhi-based developer BPTP (Rs 2.48 lakh a sq m).
Speaking to reporters later, MMRDA commissioner Ratnakar Gaikwad gave a guarded reaction. “The bidding process is not complete. We have started the process and the bids will be put up to the authority for sanction after scrutiny. The scrutiny will be done in the next few days. All the funds will be used for building the city’s infrastructure. The Mumbai Metropolitan region needs huge funds for its development,’’ Gaikwad said. The commissioner said 50 acres of land was still available at the BKC for sale.
HIGH STAKES
Some of the biggies who figured in the race for the three BKC plots on Monday:
DLF Satra Properties JSW Rolta Neelkanth Suzlon Energy Man Industries
In January 2006, the MMRDA had fixed a reserve price of Rs 480 crore for an 18.5-acre plot in the BKC for an international convention-cum-exhibition centre and a commercial complex. Reliance Industries won the bid by quoting Rs 1,104.11 crore, which was more than double the reserve price

rkanak · 08-01-08

the number looks big if you are in india and look at it in indian ruppees, but if you convert it in USD, they are still peanuts compare to the International market... So all the multinationals will be pretty happy paying this rent...they must be paying 1/10 of what they pay in NEw York or Sanfrancisco

Go India GO

13-11-07	#1
Aadesh New Member Join Date: Nov 2006 Posts: 17 Thanks: 0 Thanked 0 Times in 0 Posts	Eye Popping Deals In Commercial Space Mumbai Have a look at the RECENT DEALS IN COMMERCIAL SPACE IN MUMBAI Fidelity Investments leases out 1,850 sq ft in Maker Chambers VI, Nariman Point, at Rs 450 per sq ft KPMG leases out 30,000 sq ft in Kamala Mills compound in Lower Parel at Rs 275 per sq ft House, Prabhadevi, at Rs 350 per sq ft Avendus Advisors leases out 12,000 sq ft in IL&FS Centre at Bandra-Kurla Complex at around Rs 300 per sq ft ABN Amro renews lease at Rs 500 per sq ft (from 180 per sq ft signed three years back) for 3,100 sq ft at Sakhar Bhavan in Nariman Point Morgan Stanley leases out 12,500 sq ft of space in Peninsula Corporate Park at Parel at Rs 400 per sq ft Three leases renewed at Dalamal House, Nariman Point, with sea-view, at Rs 430 per sq ft (up from Rs 130 per sq ft 3 years back) - Business Standard (Nov 13, 2007)

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08-01-08	#3
rkanak New Member Join Date: Jan 2008 Posts: 3 Thanks: 0 Thanked 0 Times in 0 Posts	the number looks big if you are in india and look at it in indian ruppees, but if you convert it in USD, they are still peanuts compare to the International market... So all the multinationals will be pretty happy paying this rent...they must be paying 1/10 of what they pay in NEw York or Sanfrancisco Go India GO