Monday, November 29, 1999

10.5 acres of mill land up for sale in Worli

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Mumbai, May 16 -- The National Textile Corporation, one of the biggest landowners in the city, is set to release 10.5 acres of land for housing in Worli by selling two of its mills, Podar Processes and Bharat Textiles, in July. The reserve price fixed for Podar Processes is Rs 250 crore while that for Bharat Textiles is Rs 750 crore. "We are confident of getting a good price due to the revival of the realty market," said K Ramchandran Pillai, chairman and managing director, National Textile Corporation (NTC). The sale comes after a gap of nearly four years. The NTC had hived off five mills in 2005-2006 when the realty boom was at its peak of realty boom. The corporation netted approximately Rs 2,200 crore through these deals. This is the part of the Rs 6,000 crore that NTC plans to raise through the sale of its mills across the country to fund its ambitious Rs 9,000-crore expansion and modernisation plan. Real estate experts doubt whether developers will pay this sum for these mills. "In the current market scenario, there is tremendous resistance to high realty prices. Sales have gone down substantially in the last four months," said Pranab Datta, vice chairman and managing director, Knight Frank India Limited, a leading real estate consultancy firm. The argument is based on last year's aborted bid, when Lodha Builders had offered a sum of Rs 657 crore for the 10.2-acre Parel-based Finlay Mills. This was lower than the reserve price of Rs 710 crore. National Textile Corporation rejected the bid even though Lodha upped the price to Rs 710 crore. The corporation said it was confident it could fetch much more than the reserve price. The case is under litigation.This will make 90 acres of land in south central Mumbai available to builders.

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