Kanakia group Bought Land Parcel worth Rs.850 Crore in Powai

Mumbai News

Kanakia group the famous name in Mumbai’s real estate sector has bought nearly 15-acres of land in Powai. The land parcel falls in the prime locale of the city and the developer paid a whopping amount of Rs.850 crore to the Skyline Mansions and a private equity fund promoter named Anand Jain in Mumbai.

The Urban Infrastructure Venture Capital founded by Anand Jain’s Jai Crop with Reliance Industries made exit from the project as an anchor investor after finalizing this deal in which they had a stake of 33 percent.

The Urban Infrastructure had collaborated with Skyline Mansions in the year 2007 after the acquisition of the land and was planning to develop a residential project here. The Urban Infrastructure invested here through its India fund Urban Infrastructure Opportunities Fund.

One of the officials said that the project spread over 15-acres has the potential to develop nearly 2 million sq. ft. The Kanakia group will be responsible for further permissions and grants as the land parcel has been sold on as-is-what-is basis. Although some sanctions and approvals for the same have been obtained.

The Kanakia Group went into an agreement with the Urban Infrastructure to acquire stake and has closed the deal at Rs. 250 crores and out of the total consideration paid to the fund, the developer has initially paid Rs.60 crores to enter the agreement two years back.

The Kanakia group has also acquired a 66.66% project stake which were earlier owned by Skyline Ventures and cost Rs. 600 crore. This acquisition takes the deal value to Rs. 850 crore.

Also, the Kanakia group is planning to construct a mid-income premium residential project and has started the procedure to get approvals. The rate of under-construction properties currently ranges between Rs. 18,000 to Rs. 20,000 per sq. ft. in the area.