MUMBAI: Radhakishan Damani, a leading stock investor and owner of retail chain D-Mart, has bought 37,000 square feet spread over five floors in an office building in Nariman Point, Mumbai's upmarket business locality. The deal, which was done between Damani's Bright Star Investments and the Indian arm of French multinational pharma company Sanofi, was concluded at Rs 134.25 crore.
The transaction is valued at over Rs 36,000 per sq ft on carpet basis and is in line with current market price for office spaces in Nariman Point. While corporate entities keen on shifting to other business districts from Nariman Point, the deal indicates market prices here are also holding its average momentum, said brokers operating in the first business district of Mumbai. Transaction advisor Cushman & Wakefield declined to comment.
The transaction is expected to be completed in the quarter ending December 31, said Sanofi in a release to BSE. All the floors are currently on lease, it said. Sanofi India had acquired 150,000 sq ft of office space from L&T Realty at its new project in Powai, a suburb in Mumbai, for Rs 220 crore in early 2013. This was among the largest deal in terms of value during the year.
Damani, who works from his office at Dalamal Estate at Nariman Point, is known to be an astute investor.
Rough estimates suggest that valuation for Damani's retail chain D-Mart could work out to more than Rs 5,000 crore. Its revenues have increased from Rs 260 crore in 2006-07 to Rs 3,334 crore in 2012-13, and are projected to hit Rs 4,500 crore this year, which would make it India's third-largest branded retail chain.