Mumbai, Friday, April 27, 2007

GMR pays Rs49 cr for BKC office

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Office premises at the Bandra Kurla complex are being sold at a premium.

GMR Infrastructure Ltd, which won the bid to modernise Delhi airport, has bought 14,000 square feet in an underconstruction building at BKC for Rs49 crore. The figure roughly works out to a rate of Rs35,000 for every square feet on the super built up area. The building Naman Centre is near the National Stock Exchange building.

A couple of weeks ago, the British High Commission too inked a Rs147 crore deal to buy 42,000 square feet (three floors at Naman Centre) at Rs 35,000 a square feet on the super built up area. The last such expensive deal happened at Nariman Point almost 10 years ago. In 1995, office spaces at Nariman Point were sold at Rs38,000 a square feet -- a record for commercial deals still to be surpassed in the city.

GMR officials confirmed the news but refused to go into details. A real estate agent said the deal was expensive because office spaces at BKC were being sold at Rs 23,000 to Rs25,000 a square feet. And that too when the difference between the super built up and carpet areas was almost 50 per cent.

The difference between the super built up and carpet areas in Andheri and Nariman Point is 35 per cent and 15 per cent respectively. The super built up area comprises the space occupied by the staircase, balcony, lobby, and lift and carpet area the space between the walls. At present, offices are being rented out at BKC for Rs325 to Rs350 a square feet.

The High Commission will get a carpet area of almost 30,000 square feet and GMR 10,000 square feet. The High Commission's deal is still to be registered because it needs the Centre's permission to own property in the country. Although GMR will get possession within two months, it is expected to move in later. The company now has its office in Dalamal Towers at Nariman Point.

The plot on which Naman Centre is coming up is one of the five sold by the MMRDA in 2004, collectively for Rs185 crore. In 2006, Mukesh Ambani's Reliance Industries won the bid for an 18.5 acre plot reserved for a convention-cumexhibition centre for Rs1,104 crore, which works out to almost Rs18,000 a square feet.