In yet another major real estate deal, Bombay Oxygen Corporation Ltd, a factory manufacturing oxygen and nitrogen on LBS Marg in Mulund, has sold its 10-acre plot.
Property experts say a mall or a star hotel may come up on the 10-acre land
In yet another major real estate deal, Bombay Oxygen Corporation Ltd, a factory manufacturing oxygen and nitrogen on LBS Marg in Mulund, has sold its 10-acre plot for over Rs 200 crore — or approximately Rs20 crore an acre — to Housing Development and Infrastructure Ltd (HDIL).
On Monday, the company’s stock closed at Rs8,300, up by Rs.327.60 or 4.11%. The stock hit an intra-day high of Rs8,300 and a low of Rs7,900. The total traded quantity was 10 compared to the two-week average of 16.
Strategically located on the main LBS road, the industrial plot has a good frontage (wide access from the main road) and thereby offers a business opportunity to develop a mall or a commercial complex or a hotel like Hyatt at Santacruz, property experts say. Moreover, the plot is located opposite the 19-acre Glaxo-owned Burroughs Wellcome plot being developed by Oberoi Constructions.
“The price looks justified if you look at the rates prevailing in Mulund,’’ said the head of the lands transaction department of a global property consultancy firm.
Confirming the deal, chief executive officer of Bombay Oxygen R P Khator said, “It was not economical to run a small factory in a big plot. However, we have not retrenched any of the existing 50 workers, who have been shifted to our unit at Thane. We are exploring future expansion plans.’’
For the past few months, LBS Marg has been seeing a major property boom. There is a huge demand for defunct industrial properties on this stretch. Kolkata-based industrialist Raghu Mody has put the 17-acre plot of Hindustan Composite Ltd at Vikhroli on the block. The property faces a Muslim burial ground with another part touching a Godrej property.
For HDIL, this is the second major transaction in the past few weeks. The developer recently sold a commercial building project in Andheri to a private company, Mack Star Marketing, for about Rs 900 crore. The project, named Kaledonia, has nearly 0.5 million sq ft of commercial space.
HDIL, which had completed nearly 80 per cent of the project, sold the space at roughly Rs18,000 per sq ft. HDIL had bagged this project under the slum rehabilitation scheme three years ago. It had one million sq ft of space, with 0.5 million sq ft meant for slum rehabilitation and the rest for the developer.
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