25-acre Tata Steel land fetches 1.1Kcr bid

Mumbai: One of the biggest parcels of land in Mumbai, the 25-acre Tata Steel land in Borivli (E) is believed to have fetched the highest bid of Rs 1,155 crore following a day-long e-auction on Monday. It is rumoured that Oberoi Realty may be the highest bidder. 

    But a Tata Housing source said, “We are still in the race. The bidder hasn’t been finalized yet. We understand the process is still going on.” 
    Tata Steel declined to comment on the status of the transaction. 
    Others in the race are Lodha Group, Oberoi Realty, Kalpataru, Peninsula Land and Indiabulls. Lodha stretched its final offer till Rs 1,150 crore before giving up, said sources. The reserve price was fixed at Rs 750 crore when the e-auction began at 11pm. Developers kept on increasing their bids by Rs 5 crore till it reached the final Rs 1,155 crore around 7pm. The auction was coordinated by global property consultant Knight Frank; its India chairman Shishir Baijal declined to comment. 
    The land close to the Western Express Highway has a development potential of 28 lakh sq ft or 40 lakh sq ft in case the developer submits a proposal for parkingFSI. Property rates in Borivli are currently in the range of Rs 13,000 a sq ft.“The land will be developed for residential purposes,” said a source. Tata Steel has put the onus of procuring regulatory permissions and clearances on the winning bidder, and that too, within three months of the deal being sealed. 
    Of the total 1 lakh sq-m sprawl, an estimated 29,130 sq m is “Sanad” land, acquired under the provisions of the Land Acquisition Act, 1894. Tata Steel wants the winning bidder to obtain permission for sale of this portion from the collector’s office and an NOC from the Labour Authority within three months. The winning bidder will have to pay around Rs 150 crore to the collector as unearned income for this portion. “In case, the highest bidder is unable to obtain the approvals, the MoU shall automatically stand cancelled and participation deposit and earnest money deposit (Rs 20 crore) shall be forfeited,” said the information memorandum prepared by Knight Frank. “The balance consideration paid at the time of signing MoU shall be returned to the highest bidder along with interest etc.” 
    The Tata Steel document said only developers who have completed 2 million sq ft in the last three years and have a net worth of Rs 200 crore can participate. The successful developer has to pay 10% of the bid amount within two days of signing the letter of intent. The balance 90% has to be paid within a month of signing of the MOU.

The land has a development potential of 28 lakh sq ft or 40 lakh sq ft in case the builder submits a proposal for parking FSI