industry

Raymond puts 20-acre plot of land in Thane up for sale


Textile major Raymond has put on the block a nearly 20-acre land parcel, which is part of its total 125 acres at Thane’s Cadbury Junction, said two persons with direct knowledge of the development. Raymond has been looking to either jointly develop a realty project on this 125-acre land or sell it in parts since early 2011. This 20-acre plot will be the first that will be sold on an outright basis. The free-hold land parcel can potentially be utilised for residential, retail or commercial development, showed the offer documents accessed by ET.

“While the company has not put any reserve price for the land parcel, one can expect the deal to fetch around ₹650-700 crore based on the last few concluded transactions for land parcels in Thane,” said one of the persons mentioned above.

In April, the company had announced the board approval for the development of 20 acres of land for residential purposes. The project was expected to be developed over a period of 5-6 years with estimated project expenditure in FY19 to be in the range of ₹300 crore.

The company had announced that it had secured major regulatory approvals and other construction related approvals were in process. The land owned by JK Investo Trade India, an arm of Raymond, will be sold on an as-is-where-is basis and as-is-what-is-basis which means the new owner will be responsible for any permissions.

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The land parcel is estimated to have development potential of nearly 3.2 million sq ft. According to property consultants, current property prices in the vicinity range between ₹10,000 and ₹12,500 per sq ft.

In October 2010, Raymond reached an out-of-court settlement with its labour union representing nearly 2,000 employees at the Thane unit. The labour union received total compensation worth ₹313 crore in lieu of giving its consent for real estate development on the land that used to house Raymond’s textile unit until then.

The settlement provided clearances from the government bodies to Raymond for a real estate project on the land that housed its flagship textile factory since 1925. “As stated before, it is our intent to monetise our land asset and we are exploring various options available to us,” said a Raymond spokesperson in response to ET’s email seeking comments for this story.

In 2012, Raymond had initiated talks with a local real estate developer in Thane to sell a 9.4-acre plot. This was the first plot out of the large land parcel to go on the block. However, the deal fell through as the buyer was not able to raise funds for the transaction.





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