Mahindras to buy SoBo bldg for 270 crore

Group MD Was Born In Nepean Sea Rd Bungalow Mumbai: Mahindra Lifescape may buy the threestorey Nepean Sea Road bungalow in which Anand Mahindra, VC and MD of Mahindra Group, resides as a tenant with his family.      The Mahindra family's tenancy dates back to the times of Mahindra's grandfather, K C Mahindra. The deal is believed to be worth close to Rs 270 crore. Located close to Priyadarshini Park, Gulistan is spread over 15,000 sq ft. Mahindra Lifescape, the real estate wing of the Mahindra Group, has signed a preliminary agreement with the two owners, Orbit Corporation and Rishi Gagan Trust, whose beneficiary is businessman Om Navani. Navani had bought the bungalow in the early 1980s while Orbit acquired the property in 2008.      Arun Nanda, chairman of Mahindra Lifescape, told TOI that they are in the process of carrying out due diligence of the property. "We are currently in the process of talking to lawyers and six tenants, including Bank of Maharashtra, on their settlement terms for tenancy rights. We have agreed to take over some liability. The sale price is much lower than the quoted deal price of Rs 270 crore," said Nanda. The firm has made an advance payment of Rs 11 crore.      According to Nanda, the company will execute the redevelopment plan itself once the transaction was completed. "It's a deal between the two real estate companies and does not involve the group's VC. It's too preliminary for me to say how many floors I will construct as I am yet to finalize the design," said Nanda.      Real estate sources said that once the deal is signed, the Mahindras will continue to be tenants, paying rent to Lifespace. They will be compensated with an equivalent space in the new building when redevelopment was undertaken. "There is an alternative thought; if the tenants are relocated with monetary compensation, then the new building could be used to house Mahindra, with the other floors used for senior Mahindra executives. But, taking into account the prime location, it is doubtful whether the other tenants would agree," said a real estate source. Gulistan near Priyadarshini Park

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