HomeDaily NewsET: Kanakia Buys Land in Powai for About ₹850 cr

ET: Kanakia Buys Land in Powai for About ₹850 cr

The 15-acre land parcel, acquired from Skyline Mansions & PE fund promoted by Anand Jain, has development potential of 2 m sq ft


: Realty developer Kanakia Group has acquired a nearly 15-acre prime land parcel in the Powai suburb of Mumbai for around ₹850 crore from Skyline Mansions and the private equity fund promoted by Anand Jain, two people with direct knowledge of the development said.

With this transaction, the Urban Infrastructure Venture Capital, floated by Anand Jain’s Jai Corp with Reliance Industries as an anchor investor, has made a complete exit from the project in which it held 33% stake.

Urban Infrastructure had teamed up with Skyline Mansions in 2007 after the acquisition of the land and was looking to develop a residential project. It had invested in this alliance through its India fund Urban Infrastructure Opportunities Fund.

“The 15-acre project has development potential of nearly 2 million sq ft. While certain approvals are already in place, Kanakia will be responsible for further permissions now as the land parcel has been sold on a as-is-what-is basis,” said one of the persons mentioned above.

Kanakia Group had entered into an agreement with Urban Infrastructure to acquire the latter’s stake and has now concluded the deal at around ₹250 crore. Of the total consideration paid to the fund, the developer had paid ₹60 crore at the time of entering into the pact two years ago.

In addition to this, Kanakia has also acquired balance 66.66% project stake owned by Skyline Ventures for over ₹600 crore taking the total deal value to ₹850 crore.

ET’s email queries to Urban Infrastructure Venture Capital and buyer Kanakia Group remained unanswered until the time of going to press. Skyline Mansions’ director Narottam Sharma confirmed the transaction without elaborating on details.

The Kanakia Group is looking to develop a mid-income premium residential project and has started the process to secure approvals. Currently, under-construction property rates in the vicinity are in the range of ₹18,000 to ₹20,000 per sq ft.

After a long gap, land transactions have started to gain momentum in Mumbai Metropolitan Region, the country’s most expensive property market. Over the last few years, outright land transactions were overtaken by joint developments and joint ventures as that would enable the developer lower capital involvement and a possible revenue upside to the landlord once the project is ready.

In May, realty developer Kalpataru emerged as the highest bidder for 8-acre land parcel of Mondelez India or former Cadbury India on Thane’s Pokharan Road 1with its bid price of ₹282 crore. Kanakia Group itself entered into an agreement with India Tube Mills to buy its seven-acre land parcel in Vikhroli suburb of Mumbai for ₹363 crore.