Mumbai, May 16: The realty market is buzzing again in Mumbai with talk that Mukesh Ambani’s retail venture is ready to plonk down Rs 1,000 crore for a 61'acre plot in Powai that it intends to acquire from Larsen and Toubro (L&T).
This will be the second time in less than six months that Reliance will be stumping such a huge sum of money on a land deal.
In January, Reliance Industries had acquired a plot in the Bandra Kurla complex measuring close to 7.5 hectares for Rs 1,104.11 crore.
Reliance spokesperson refused to comment on the latest deal, while an L&T official said, “We are not selling any land in Powai.”
But the talk refuses to die down in Mumbai which has seen a clutch of big-ticket land deals in the past year. The buzz in the realty grapevine is that Reliance Industries is acquiring the parcel of land for its retailing, commercial as well as a residential venture.
“Such deals take a long time to close. But if this one goes through, it could be one of the biggest land deals in Mumbai,” said a real estate analyst.
“Powai has emerged as a preferred destination for large corporate houses, scoring over Andheri and Malad in the western and Mulund in the central suburbs. Powai has space, good infrastructure, and clean environment. These features have made it very attractive to big companies and ITeS firms,” said a real estate expert with Trammell Crow Meghraj.
The Mumbai realty market has seen a flurry of big real estate deals in the recent past. Prices have hit the roof after the Supreme Court cleared the sale of NTC mill land in the heart of Mumbai.
The mill land sale saw some of the highest realty prices in the country. The Gurgaon-based DLF Group acquired 13.5 acres of NTC mill land for Rs 702 crore. The company plans to use the land to set up malls and commercial space.
Recently, Ahmedabad'based Adani Group secured the land rights for close to 10 lakh square feet in the Bandra Kurla Complex ' the commercial hub of Mumbai ' for Rs 700 crore.
Powai has a huge locational advantage. All the commercial areas such as Andheri, Bandra-Kurla Complex, Maharashtra Industrial Development Corporation complex, New Mumbai and Santa Cruz Electronic and Export Promotion Zone are close to Powai.
Residential property rates in Powai are ruling at around Rs 6,000 to Rs 7,000 per square feet.
Many builders are developing residential and commercial complexes here. Several MNCs like Colgate, Bayer, and FedEx, and a number of software companies have also moved in. A few companies have also shifted their offices from Nariman Point to Powai.