Oberoi Realty to buy land in Mumbai from Tata Steel for $190M

Tata Steel has completed the auction to sell its 25-acre land asset in Mumbai suburbs to Oberoi Realty Ltd for Rs 1,155 crore ($190 million), as per a stock market disclosure.

The steel major had launched the bid-cum-auction process for the sale of its land parcel in Borivali in December 2013. The site measuring roughly 25 acres is located at the junction of Western Express Highway and Dattapada road in Borivali (E), Mumbai and is abutting both these roads. The neighbourhood predominantly comprises medium to high-end residential developments.

Tata Steel completed the e-auction process on Monday for the sale of the property with several developers among the suitors. The committee of independent directors of Tata Steel appointed for the oversight and governance of the sale process by Tata Steel has now declared Oberoi Realty as the highest bidder of the auction, after several rounds of bidding.

Among other bidders for the land were names like group firm Tata Housing, Lodha Group, Kalpataru, Peninsula Land and Indiabulls.

The auction was handled by property consultancy firm Knight Frank.

This is among the large land deals in Mumbai after DLF Ltd, the country’s largest realty firm by market capitalisation, sold its 17-acre plot in the city to Lodha Developers in 2012 in a deal worth Rs 2,700 crore ($488 million). This deal also included a debt component. Lodha Group has been busy striking big realty deals in London.

In other recent land deals in Mumbai, RPG Cables is learnt to have agreed to sell its property in Thane to Peninsula Land. Last year RPG Life Sciences Ltd sold the leasehold rights of its surplus land in Navi Mumbai to Maruti Suzuki India Ltd for Rs 76.91 crore.

Oberoi Realty’s revenues fell around 39 per cent to Rs 170 crore for the three months ended December 31, 2013, over the year-ago period. In the same period its net profit almost halved to Rs 68 crore.

(Edited by Joby Puthuparampil Johnson)

Leave Your Comment(s)