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Developer K Raheja trumps Mirae to snap up Citi\'s prime Mumbai property
Photo Credit: Reuters

Mumbai-based real estate developer K Raheja Corp has left behind bidders including South Korean investor Mirae to lap up Citi Centre, a prime property in Bandra Kurla Complex (BKC), Mumbai, two people close to the development told VCCircle. 

The deal value is around Rs 400 crore (about $58 million at current exchange rate), the people said.  

The sale process of the eight-storey office building in BKC had been going on for the last few months. As reported by VCCircle, Mirae was earlier leading the race to buy the property

Citi Centre used to house the headquarters of US banking major Citibank before it moved to another property in the vicinity. 

The property, on an area of roughly 100,000 square feet, has been on the block for a long time. Investors had queued up back in 2013 also.

Some of the investors that eyed Citi Centre in the recent sale process are Blackstone, GIC, and Godrej Fund Management. The Economic Times first reported the purchase of the property.

An email to Citibank did not elicit any response till the time of filing this story. K Raheja said that the company would not like to comment on the development. 

K Raheja has a partnership with one of the biggest owners of commercial real estate in the country Blackstone. 

As and when the deal happens, it will add further momentum to the commercial real estate market in the country. While the residential segment continues to be sluggish, commercial has been a bright spot, attracting investors and developers from various parts of the world. 

Given strong momentum in leasing activity and falling vacancy levels, investors are lapping up commercial assets across the country. There is stronger demand for complete and leased-out properties. 

Recently, Bengaluru-based real estate developer Embassy Group struck a deal to take over Indiabulls Real Estate. The deal valued the company at over $1 billion. 

Mapletree, in one of the biggest transactions in real estate, bought SP Infocity from Shapporji Pallonji and Canada Pension Plan Investment Board (CPPIB) for a whopping $235 million.

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