[GAGA REALTY] [JOINT VENTURE] [GAGA HOMES]
Realty developer Runwal Realty has acquired listed paint and coating manufacturing company Kansai Nerolac Paints’ 4-acre land parcel in Mumbai’s plush Worli locality for around Rs 800 crore including stamp duty and other charges.Runwal Realty is planning to develop a luxury residential project on the plot that has development potential of 1 million sq ft and the project is estimated to hold development potential of Rs 8,000 crore, said a top company official.While both the companies had entered into an agreement for this land deal, the transaction was concluded and registered on Thursday evening.“This acquisition strengthens our footprint in South Mumbai and luxury segment, following the robust response to our developments Runwal The Residence at Nepean Sea Road and Runwal The Reserve in Worli, both premium developments in the region,” Sandeep Runwal, MD, Runwal Realty, told ET.According to him, this land acquisition aligns with the company’s vision of delivering larger layouts and upscale living experiences.Kansai Nerolac announced the deal worth Rs 726 crore through regulatory filing on Thursday evening.In a regulatory filing last month, Kansai Nerolac Paints had announced that it has entered into a Deed of Conveyance for the purchased the reversionary rights of the land parcel at Lower Parel from Bombay Zoroastrian Jashan Committee, the lessor of part of the land parcel, for a consideration of Rs 48 crores.“Large potential projects are one of the most sought after by Grade A developers. The strong market trends coupled with the macro-economic factors, infrastructure push, regulatory environment offer a monumental growth opportunity,” said Nishant Kabra, Head, Capital Markets (West & North), India, JLL that acted as the exclusive advisor for the transaction.According to him, currently India is witnessing a growth cycle across all forms of real estate, and well-capitalised developers with operational capability stand to benefit from the same.Mumbai, the country’s largest and most expensive realty market, has been setting new benchmarks in terms of property registrations and stamp duty revenue collections as robust demand helped sales momentum despite higher mortgage rates and real estate prices.Transactions for land parcels are gaining significant traction across major property markets in India, particularly in cities like Mumbai, Pune, Chennai, Hyderabad, and Bengaluru. These deals include both outright acquisitions and joint ventures as developers and investors look to secure prime land for new projects.Many of these transactions have already been closed, while others are in advanced stages of negotiation, reflecting the strong demand for land in these high-growth urban centres.The increasing appetite for land is driven by the growing need for residential, commercial, and mixed-use developments as these cities continue to expand and attract both domestic and foreign investments. Nominations for ET MSME Awards are now open. The last day to apply is November 30, 2024. Click here to submit your entry for any one or more of the 22 categories and stand a chance to win a prestigious award.
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