Lodha buys Washington House Pays 375Cr For US Consulate Property

Mumbai: Nearly two years after it put up the property for sale, the United States consulate is learned to have finally sold Washington House, its three-storey residential building at Altamount Road, to Lodha Group for over Rs 375 crore. The city-based realty developer is believed to have already paid a token amount of over Rs 50 crore to the consulate. Talks are on with Tata Realty and other bidders for the sale of Lincoln House, which housed the office and residence of the US consul general at Breach Candy. 

    The three-storeyed Washington House covers 2,702 square metres. It is listed as Grade III property and falls under the Coastal Regulation Zone II. Property rates in the immediate vicinity currently range between Rs 60,000 and Rs 70,000 a sq ft. Lodha Group will demolish the building and replace it with a luxury residential tower. 
    Highly placed sources said the deal was reached about a month ago but had not been inked as the consulate is yet to receive the go-ahead from state and central authorities, including the ministry of external affairs. Lodha bid in tune with market reality 
Mumbai: Speaking about the reported sale of the US consulate's Washington House on Altamount Road, Abhishek Lodha, managing director of Lodha Group, said, "We haven't concluded the deal yet.'' Anshul Jain, DTZ's chief executive officer, the global property consultant for the transaction, refused to comment. 
    The bidding memorandum had said that the US government expected to procure clearances from the MEA and state and local authorities for the sale within 90 to 180 days of getting the confirmation letter from the winning bidder. However, if the clearance did not come through within this period, the memorandum said, the US government could cancel the transfer of property and return the money to the bidder or reach a mutual decision to extend the time limit for obtaining the said approval from the ministry of external affairs. 
    Property sources said that Lodha's bid, close to the reserve price of Rs 350 crore, is in tune with current market conditions. The Altamount Road property is believed to have received three bids. "There is always going to be an appetite for property in these prime locations,'' said Anshuman Magazine, managing director of CBRE, global property consultant. 
    Altamount Road winds up the hill off Pedder Road and is rated as the 10th costliest street in the world (2010 Wealth Bulletin). Breach Candy, Carmichael Road, Nepeansea Road and Altamount Road have always been prime residential locations in south Mumbai where property prices range between Rs 45,000 and Rs 85,000 a sq ft.

Washington House at Altamount Road used to house consulate officials before the US decided to hive off the property