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| Core Projects likely to buy ` 350-cr Andheri property |
| Mumbai, 10 July THEsaga of buying out highend office space in Mumbai continues. In a latest development, Mumbai-based education company, Core Projects and Technologies, is in talks with the leading plastic goods maker Supreme Industries to buy out the office property developed by the latter in the Andheri area of Mumbai. The deal could be worth `350 crore in value, said sources close to the development. If this deal concludes, it could become one of the largest office space sale transactions in Mumbai this year. US banking major Citibank has reportedly bought 300,000 sq ft space in a building developed by NRI investor Purnendu Chatterjee and US-based Vornado Realty Trust for `1,000 crore in Bandra Kurla Complex (BKC) in Mumbai. Citibank paid `33,333 a sq ft. The deal is expected to get closed within a month. The property is located off Veera Desai Road in Andheri West. The `2,000-crore Supreme Industries had sold 40,000 square feet of office space in the building to film production house Eros and a private individual for `60 crore earlier this year and looking to generate around `350 crore for the remaining 2,25,000 sq ft of the property. At this rate, it comes to `15,555 a square feet. Sanjeev Mansotra, chairman and global CEO of Core Projects said the company was looking at consolidating its properties and setting up new corporate headquarters in one place in Mumbai. “We are in talks for office space but nothing has finalised yet,” Mansotra said. Core has a 200,000 sq ft development centre in Navi Mumbai and two more centres in SEEPZ special economic zone in Andheri and Hyderabad. The new property is expected to help Core Projects in consolidating its properties and reduce costs. On Friday, shares of `515crore Core Projects closed at 301, down by 0.53 per cent on BSE. When contacted, MP Taparia, managing director of Supreme Industries said he would not like to comment on speculations on the property. Unlocking value from real estate is crucial for Supreme Industries in its plans to reduce its debt and fund its `270-crore capex plans in 2011-2012. According to realty consultants, sale transactions have gone up in suburban Mumbai as prices have stagnated and vacancy levels remain high. Seller Buyer Space Value Year (sq ft) ( `cr) TCG-Vornado CitiBank 300,000 1,000 2011 Bombay Dyeing Axis Bank 400,000 782 2010 NA Standard 147,000 750 2008 Chartered Rustomjee SBI Life 142,000 211 2009 |