Kalpataru Acquire Bayer’s Thane Land for ther project Kalpataru Immensa.
Kalpataru Acquire Bayer’s Thane Land for ther project Kalpataru Immensa
Kalpataru Acquire Bayer’s Thane Land for ther project Kalpataru Immensa, Realty developer Kalpataru will acquire agrochemical maker Bayer Cropscience’s 100-acre land parcel in Thane.
Kalpataru has paid an initial amount of . 260 crore, while the final price will be decided only after certain regulatory approvals. “One of the key approvals on which the final consideration may depend is Mumbai Metropolitan Region Development Authority’s (MMRDA) approval for a rental housing project there,” an official involved in the transaction told ET.
Developers had bid for the plot after factoring in a floor space index (FSI) of four that is available if the developer gets approval to build a rental housing scheme for the Mumbai Metropolitan Region Development Authority. With an FSI of four, the development potential for the plot will be a little over 1 million sq ft.
The rental housing scheme envisages construction of 160 sq ft tenements for the MMRDA in exchange for additional FSI. The FSI is development permitted on a given plot. Thus, on 100 square meters of land, construction of 400 square metres is allowed in case the FSI is four. However, of late, the state government or the MMRDA have not given any new approval for any rental housing scheme in and around
Thus, on 100 square meters of land, construction of 400 square metres is allowed in case the FSI is four. However, of late, the state government or the MMRDA have not given any new approval for any rental housing scheme in and around Mumbai .
“The conveyance, transfer, sale and possession of the Thane property will be completed at a future date, subject to relevant approvals and permissions from the government and other statutory bodies, as may be deemed necessary,” Bayer Cropscience said in its filing to the Bombay Stock Exchange late Wednesday.
Kalpataru has signed the deal through its subsidiary Agile Real Estate. Bayer Cropscience’s transaction advisor Ambit Corporate Finance declined to comment on the deal, while no response could be elicited from Kalpataru. ET had first reported on March 10 that Kalpataru is close to buying the land parcel and the deal is expected to be signed in the next few weeks.
Recently, Kalpataru had revised its bid for the property upward to . 1,400 crore from an earlier bid of around . 1,300 crore, with which it had emerged as the second-highest bidder for the plot behind DB Realty’s bid of . 1,540 crore. DB Realty had withdrawn its bid in February, citing title issues. After making an initial payment of . 260 crore, Kalpataru is required to pay the entire amount in a staggered manner over eighteen months from the date of signing the agreement, sources said.
Efforts to sell this large land parcel at Kolshet Road in Thane started in August 2010. Close to 10 leading realty companies including Lodha Developers, Wadhwa Group, Peninsula Land Sheth Developers and Runwal had shown interest in acquiring the plot.
The agrochemical major had set a reserve price of . 1,000 crore for the plot that has been used so far for manufacturing crop protection products.
However, given the tight liquidity scenario, falling realty sales and hardening interest rates, Bayer decided to introduce a staggered payment option into the deal, industry officials said.
Publication: The Economic Times Mumbai; Date: Apr 1, 2011; Section: Political Theatre; Page: 3