Realty gets its hands on industrial land in B’lore

Realty gets its hands on industrial land in B’lore
The Economic Times

BANGALORE is following the Mumbai example of unlocking industrial and mill lands across for development. According to real estate sources, nearly 200 acres of industrial land is available in the city, of which nearly half has already hit the market.

The valuation of the land
parcels are significantly lower than was recently announceed in Mumbai. India’s commercial capital has about 400 acres of industrial land for sale in the market. More land is expected to be infused into the system with companies like GlaxoSmithkline Pharma, Bombay Dyeing, NRC, Raymond and Premier Auto planning sale of surplus land.

In most cases, developers (and land owners) avoid sharing details of the transaction till they are ready to launch a project. Market sources say that DLF may have made its maiden entry into Bangalore by firming up acquisition of 15 acres in Whitefield in what used to be Barukha Steel plant land. The total plot size is said to be 40 acres, and the unsold portion is still said to be with the owner.

While details are not available, rates in the area are estimated at Rs 1,200 -1,400 per sq ft, which would give this deal a valuation of about Rs 80/90 crore. An integrated retail, commercial, residential development may be on the cards.

Sources said another transaction which is on the cards in Bangalore is sale of the eight-acre John Fowler factory land in Koramangala. At an estimated Rs 3,300/3,400 a sq ft rate, the deal may be worth Rs 110/118 crore. Several developers are said to be in the race for this prime land.

According to an international property consultant, about 80/90 acres of industrial land is being negotiated in packets with different developers and deals are likely firm up shortly. The 24-acre Binny Mills land in Majestic — heart of the city — is also for sale. Land prices have appreciated by 20-60% in the last 12 months depending on location.

DLF was in news recently for cracking the biggest real estate deal in the country by snapping up the 19-acre Bombay Textile Mills property at Lower Parel, Mumbai, for Rs 720 crore. DLF mentioned in a statement that it intends to corner 25% of the high-end retail market of 40 million sq ft across India in 2-3 years, which makes the Bangalore initiative relevant.

In Bangalore, in the recent past, Brigade acquired about 40 acres on what used to be the Kirloskar factory, adjoining the Metro Cash & Carry outlet in Yeshwantpur, to develop an integrated project called Gateway comprising commercial, retail, residential and hotel facility. Land rates were in the range of Rs 500/600 per sq ft then compared to Rs 1,800/1,900 now. The group has also acquired a 36 acre plot belonging to Capsteel factory in Whitefield for a similar project. RMZ is building a tech park on 13 acres on Old Madras Road.