MUMBAI: Essar Group has put its 8-acre land parcel in Thane district on the block and is expecting around Rs 150 crore from the transaction, said two persons familiar with the development. The group had earlier proposed to develop the land parcel into a residential project through its realty company Equinox Realty.
"The plans to develop the plot have now been shelved and the company is looking to monetise this plot," said one of the persons mentioned above.
Last year, the company had tested the market with the same land parcel keeping its options open to join hands with a private equity player as a financial partner. However, given the liquidity crunch in the property market then, the plans didn't work out.
"Equinox Realty, part of Essar, owns an 8 acre plot in Thane. As a commercial organisation, we keep valuing our assets from time to time. However, this does not indicate an intent to enter into a transaction or conclusion of a fixed value," said an Essar spokesperson.
The land parcel situated on Kolshet Road in Balkum area is estimated to have a development potential of around 8 lakh sq ft and the ongoing under-construction property rates are ranging between Rs 8,000 and Rs 8,500 per sq ft. Thane has been witnessing active interest from realty developers for picking up land parcels and the city has seen several benchmark transactions this year. In November, Indiabulls Real Estate emerged as the highest bidder for Voltas' prime 7.2-acre land parcel at Pokharan Road No. 2 in Thane. The realty developer's bid of Rs 236 crore was the highest being paid on per acre basis for a land parcel in Thane. The developer is paying Rs 33 crore per acre under this transaction.
In an earlier deal, Tata Housing Development Company had acquired a 7-acre plot in Thane from KEC International for Rs 212 crore or Rs 30 crore an acre. In April, specialty chemical maker Clariant Chemicals (India) entered into an agreement with developer Lodha Group to sell its 87-acre land parcel in Thane for Rs 1,154.25 crore. After a lull of nearly three years, sale of large land parcels is picking up across the country.