Saturday, August 29, 2009

Big land deals on MG Road

Big land deals on MG Road
Anshul Dhamija | TNN

Bangalore: In one of the biggest land deals in Bangalore in recent times, around 6 acres of land spread across the heart of the city have been bought by the Silverline Group, a leading city realtor, together with some high networth individuals.
The deals happened over the past few months.
It includes five land parcels, all on long leases to corporate entities that include Vijaya Bank, The Taj Residency, The Park Hotel, Canara Bank (all near Trinity Circle), and Barton Centre on MG Road.
For some properties, the lease expires after 30 years, for others, 60 years.
Property dealers say that since all land holdings are long lease, the value of the deal may not be much.
5 acres near Trinity Circle β€” Silverline Group and two HNIs own one-third each 1 acre Barton Centre β€” Silverline Group and another HNI own 50% each Prime land belonged to old Bangaloreans
Bangalore: The 6 acres of land spread across the heart of the city that is being snapped up by a realtor and HNIs belonged to some of the older moneyed families of Bangalore, and were being passed on from one generation to the next. These include the Angadi family and Thambu Chetty family which are now hiving off portions of their valuable holdings in the city centre. The Angadi family, whose business interests are in mining, owned the 5-acre tract of land near Trinity Circle that hosts Vijaya Bank, Canara Bank, The Park Hotel and The Taj Residency. Now, Silverline and two other HNIs own one-third of the land each.
The 1-acre Barton Centre property, once owned by the Thambu Chetty family (part of the Puttana Chetty legacy), is now owned by Silverline (50%) and the remainder by a citybased HNI. Silverline promoter Farook Mahmood confirmed the land buys but declined to provide the deal size.
However, property analysts say that since all land holdings are on long lease, the value of the total deal may not be as much as indicated by the current land values on MG Road. Land values on MG Road are now around the Rs 15,000 to Rs 20,000 per sq ft levels.
β€œThe actual value and worth of the properties will only be seen once the lease periods terminate. Till then, the land parcels will give almost negligible returns as their lease rents are at historical rates,” said one analyst


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