Tenant Mahindra to Buy Out City Bungalow for 270 cr

Group arm to buy Nepean Sea Road property where Anand Mahindra was born

The Mahindra Group's real estate arm will pay close to . 270 crore to acquire a three-storey bungalow on south Mumbai's Nepean Sea Road in which Vice-Chairman and Managing Director Anand Mahindra was born and lives as a tenant. 

The bungalow, named Gulistan, occupies around 13,000 square feet of land opposite Priyadarshini Park and is owned by a special purpose vehicle set up by one of Mumbai's top builders, Orbit Corporation. Rishi Gagan Trust, whose beneficiary is businessman Om Navani, also has a small stake. Navani had bought the bungalow from an earlier owner in the early 1980s while Orbit acquired the property in 2008. 
Arun K Nanda, chairman of Mahindra Lifespace, the real estate arm, said his company has signed a termsheet, or a preliminary agreement, with the current owners and made an advance payment of . 11 crore. 
"The company has a 90-day window to complete due diligence and complete the transaction," he said. It will have to come to a settlement with its co-tenants that include Bank of Maharashtra, which operates its Nepean Sea Road branch from the premises. Nanda, who became non-executive chairman of Mahindra Lifespace in March 2010 after Mahindra stepped down as chairman, also said the deal amount was not . 270 crore.

Anand Mahindra's Gulistan