The plush South Mumbai property market saw a large bungalow deal once again. In a major transaction, Radius Developers has acquired Ram Mansion, a bungalow on Nepean Sea Road from Ashok Piramal Group’s Peninsula Land for over Rs 235 crore, two persons with direct knowledge of the development said.
“Yes, we have sold the land parcel of Ram Mansion for over Rs 235 crore and Peninsula Land has exited the deal completely,” Peninsula Land said in response to ET’s email query. “We were evaluating options and were waiting for good opportunity and once we got the right deal, we exited the project.” Email query to Radius Developers remained unanswered until the times of going to press.
This transaction for the bungalow, spread over a little less than one third of an acre, puts it among the costliest deals in this micro-market is known for sky high rates of real estate. In the recent past, chairman of the Poonawalla Group, Cyrus Poonawalla, acquired Lincoln House spread over 2.06 acres for Rs 750 crore. Another bungalow, Mehrangir, with built up area of half an acre, was sold for Rs 372 crore.
The developer is planning to redevelop the bungalow into a luxury high-rise apartment block. The property has total development potential of about 50,000 sq ft.
“The deal has already been concluded and Radius is likely to start its process for approvals for the proposed development soon,” said one of the persons mentioned above.
Peninsula Land had bought this bungalow from its erstwhile owner in 2010 for over Rs 110 crore for redevelopment of the property. However, the project, touted to be Peninsula Land’s maiden redevelopment venture, did not take off since then.
The South Mumbai micro-market including areas like Nepean Sea Road, Malabar Hill, Altamont Road and Carmichael Road is known for recording the country’s most expensive transactions in terms of per sq ft rates for luxury pads here.
In a recently concluded transaction, a business family bought four apartments in Runwal Group’s upcoming residential tower The Residence at Nepean Sea Road for ₹240 crore with per sq ft rate working out to be around Rs 1.2 lakh.
In one of the major bungalow deals in South Mumbai, promoter family of Jai Corp, including current and former MDs Gaurav Jain and his father Satyapal Jain, recently bought ‘La Bonita’ a sea-view bungalow in Breach Candy locality from the Mehta family, cricketer Sachin Tendulkar’s in-laws, for Rs 152 crore including stamp duty of Rs 7.25 crore.
It could not be ascertained if this bungalow has been acquired for personal use or if new owners are planning to redevelop it.
Apart from the entities involved, the deal assumes significance as South Mumbai is witnessing a major bungalow transaction after the gap of nearly three years.
Over the past few years, several bungalows in South Mumbai’s tony localities like Carmichael Road, Altamont Road, Nepean Sea Road and Malabar Hill have made way to luxury skyscrapers. Several industrialists and India’s uber rich have also been buying bungalows for their personal use in this billionaires’ district.
In 2015, industrialist Kumar Mangalam Birla emerged as the highest bidder for the sea-facing, 30,000-sq-ft, Jatia House in Malabar Hill. The Aditya Birla Group chairman paid Rs 425 crore for the property, making it the most expensive bungalow deal ever in India then, surpassing the Rs 400 crore Maheshwari House deal of 2012. Soon after, Poonawalla emerged as the highest bidder for the US Consulate’s Lincoln House at Breach Candy for ₹750 crore, making it the costliest transaction for a house.economictimes