Page 12 - CV April-May 2019 issue

BKC inside the BKC enclave. Chhabria got the 2.5-acre One BKC property
IN MUMBAI'S BIGGEST The One BKC deal has been stuck for a few as part of a division of assets with Wadhwa
BUILDING DEAL, US months owing to a dispute between Radius Group some years ago. The developer was
INVESTOR TO PAY RS and MMRDA over payment for additional to pay Rs 984 crore to MMRDA for the
2,500CR FOR BKC TOWER construction rights. MMRDA controls all additional FSI over five years.
lands in BKC. The HC, in its order of March However, due to the delay in paying a portion
The One BKC deal has been stuck for a 27, resolved the issue and directed MMRDA of the premium by the builder, MMRDA
calculated the remaining amount to be paid
at Rs 782 crore. Radius challenged this
amount, stating it owed MMRDA Rs 541
crore. A HC bench of justices Ranjit More
and Bharati Dangre last week ruled in the
builder's favour.

However, in its interim order, the court said
the payment of this amount by the builder
and issuance of permissions by MMRDA will
be subject to the final outcome of the writ
petition filed by the builder. Radius has
challenged the penal interest rate levied by
MMRDA. The last biggest commercial
property transaction in Mumbai was in 2015
when pharma firm Abbot India paid Rs 1,479
crore to Godrej Properties for 4.35 lakh sq ft
space in Godrej BKC situated inside the BKC
enclave. In January 2006, Reliance bid a
few months owing to a dispute between to issue an NOC and part occupation record-breaking Rs 1,104 crore for an 18-
Radius and MMRDA over payment for certificate to the building within seven days acre plot in BKC, where it is currently
additional construction rights. of the builder making the payment. building its convention centre.
Radius will repay the Rs1,700-crore loan
A Bombay HC interim order last week has GODREJ PROPERTIES
taken from IndiabullsNSE -1.11 % Housing
paved the way for the biggest deal in CONCLUDES ACQUISITION
Finance in 2017, while Rs 541 crore will be
Mumbai for a single building. The deal OF RK STUDIOS' LAND
paid to MMRDA for the extra FSI it had
between global real estate investor
purchased to construct the tower. MUMBAI: Godrej Properties has concluded
Blackstone and Radius Developers for the
When contacted, Radius MD Sanjay buying 2.2-acre R K Studios' land parcel in
building in Bandra-Kurla Complex (BKC) is
Chhabria refused to comment. People Mumbai's Chembur suburb, the company
believed to be worth nearly Rs2,500 crore.
tracking the deal said the MoU has been said in a release.
signed but the deal hadn't been registered
Blackstone will pick up a 60% stake in Wing
because of the legal case. “This is the The company is planning to develop a 3.5
A of One BKC, sources told TOI. The 18- lakh sq ft residential project on this plot. ET
largest transaction in the BKC and the
storey building has around 6.5 lakh sq ft of had reported the deal on October 26.
biggest, perhaps, in the country for a portion
space on lease. Tenants in this wing include While the company has not disclosed the
of a commercial building,” said sources.
Bank of America, Facebook, Amazon, JLL, transaction value, it is believed to have paid
ICICINSE 0.27 % Prudential, Cushman & between Rs 170 and Rs 190 crore for the
One BKC has three wings and about 1.5
Wakefield, Brookfield, Cisco and Trafigura. plot. The studio was built about 70 years ago
million sq ft of space. Of this, 6.5 lakh sq ft of
The last biggest commercial property by Raj Kapoor, who was often called the
Wing A is planned to be sold. Blackstone
transaction in Mumbai was in 2015 when Greatest Showman of Indian Cinema.
currently manages US $119 billion of equity Recently. a major fire tore through the studio,
Abbot India paid Rs 1,479 crore to Godrej
for real estate investments. gutting decades of film memorabilia.
Properties for 4.35 lakh sq ft space in Godrej
10 / CONSTRUCTION VISION / May June 2019