Thursday, February 25, 2010

Wadia sells Mumbai building to Axis for Rs 640 crore

25 Feb 2010, 0550 hrs IST, Nauzer K Bharucha, TNN
MUMBAI: A new four-storey commercial building at Worli is being sold for Rs 640 crore, pitching it as one of the costliest in the country. The Nusli Wadia-led Wadia Group has finalised the mega deal with Axis Bank, which is planning to shift its headquarters to the building. 

The deal generated a lot of interest in Mumbai's property market and some sources in real estate circles had pegged the price at Rs 900 crore. But this was discounted by a senior representative of a leading financial institution who was said to be aware of the nitty-gritties of the transaction.

The Wadias were unavailable for comment. A spokesperson for Axis Bank said: "At this point of time we do not have any comments to offer."

The building, Wadia Tower A, located in the Bombay Dyeing Mill compound on Pandurang Budhakar Road, has a saleable area of over 4 lakh square feet. It works out to Rs 16,000 a square foot.

The representative of a global property consultancy firm said: "A deal of this magnitude for a ready building is unheard of. This is by far the largest of its kind."

Axis Bank, one of the three largest lenders in the country, plans to move out of its existing offices in Maker Towers in Cuffe Parade and set up its headquarters in Wadia Tower A. Several financial sector companies have already relocated to new business centres like the Bandra-Kurla Complex and Kalina.

The Wadias, considered to be one of Mumbai's biggest land owners, control 64 acres in prime central Mumbai where they are also developing 1 million square feet of residential space. Source: Economic Times

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