The biggest deal for single building in Mumbai has taken place between the international real estate investor Blackstone and Radius Developers for a building in Bandra-Kurla Complex (BKC) and is said to be of worth Rs. 2,500 crore. A recent Bombay HC interim order has made way for the biggest deal in Mumbai for a single building.
The Blackstone firm will take over 60% stake in Wing ‘A’ of One BKC, the sources said. The 18-storey building has nearly 6.5 lakh sq.ft. space on lease. This wing has branded tenants like Bank of America, Facebook, Amazon, JLL, ICICI Prudential, Cushman & Wakefield, Brookfield, Cisco and Trafigura. In Mumbai, the last biggest commercial property transaction was held in 2015 where Abbot India paid Rs. 1,479 crore to Godrej Properties for 4.35 lakh sq.ft. space in Godrej BKC inside the BKC enclave.
The One BKC deal was stuck for a few months owing to a dispute between Radius and MMRDA [Mumbai Metropolitan Region Development Authority] over payment of additional construction rights. The land in BKC is controlled by MMRDA and HC in its order of 27th March the issue is resolved and the court directed MMRDA to issue an NOC and part occupation certificate to the establishment within seven days of the builder making the payment.
The Radius will repay Rs. 1,700-crore loan that is taken from Indiabulls Housing Finance in 2017, whereas Rs. 541 crore will be paid to MMRDA for the extra FSI it had bought to develop the tower.
According to the sources, the MoU has been signed but the deal is yet to be registered due to the legal case. This is the largest transaction in the BKC and the biggest, probably in the country for a portion of a commercial building.
The One BKC has three wings and about 1.5 million sq.ft. of space. Out of this, 6.5 lakh sq.ft. of Wing A is planned to be sold. At present, the Blackstone manages US $119 billion of equity for real estate investments.
Radius got the 2.5-acre One BKC property as a part of a division of assets with Wadhwa Group few years ago. The developer was to pay Rs. 984 crore to MMRDA for the additional FSI over five years.