In 2005-2006, the National Textile Corporation’s (NTC) decision to sell five defunct mills like Elphinstone, Jupiter equivalent to 49 acres of land
In 2005-2006, the National Textile Corporation’s (NTC) decision to sell five defunct mills like Elphinstone, Jupiter equivalent to 49 acres of land saw land prices zooming up to exorbitant levels in the city.
Today, when the real estate market is in doldrums due to rapidly increasing liquidity crunch, the NTC has put 10.4 acres or roughly 8 lakh sq ft developable space of Finlays Mill at Lower Parel in the market. The mill is estimated to be worth over Rs600 crore at the current market rate of approximately Rs8,000 a sq ft.
Interestingly, NTC is selling Finlays on as is where is basis along with structures, plan and machinery. If further the Bombay High Court rules otherwise on the petition (currently reserved for judgement) filed by INTACH to declare certain structures as heritage structures including 7,500 sq mts of built up area, the successful bidder can develop a vast area. “Since the mill will therefore, hardly have any vacant land, the successful bidder will not have to share one-third land with the Maharashtra Housing and Area Development Authority and the BMC while redeveloping the mill under section 58 of Development Control rules,’’ said a senior NTC official, who refused to
be named as not allowed under rules..
Terming NTC’s move as premature, Pranay Vakil, chairman of Knight Frank global property consultants said, “A clear sign that the liquidity crunch has started to pinch companies was when there were no takers for commercial plots at Bandra Kurla Complex. Jet Airways which bid an astounding Rs826 crore for a commercial plot at BKC has yet to pay up. Projects are slowing down as developers want to be cash rich. I wonder therefore, whether any developer has kind of this kind of liquidity.”
NTC officials are though confident of getting a good price. “There is not much land available in the heart of the city. With the result, not much development takes place. The property prices may be falling, but they usually affect the suburban market where there is lot of construction,’’ the official said. Construction of a new Finlays mill at Amchalpur
in Amravati district has already started in September.
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