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Wadhwa Group buys Mumbai suburb plot for Rs 571 crore

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In one of the biggest land deals in the country in the past one year, the Mumbai-based Wadhwa Group today said it had bought 18.18 acres in Mumbais Ghatkopar suburb for Rs 571 crore from Hindustan Composites Ltd. The deal works out to Rs 7,210.31 a sq ft (1 acre equals 43,560 sq ft).

The developer has tied up Rs 300 crore from the Indiabulls Group to pay for the land and will use internal accruals to fund the rest of the deal. Consultants termed the deal expensive, given the prevailing property prices.

I think it is a good price for the seller. The buyer will be able to make his returns by the time the project gets all approvals and gets going. Since markets have improved, such deals are happening now,” said Akshaya Kumar, chief executive of Park Lane Property Advisors.

More : business-standard.com

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