[Jai]

Mill auction to push prices through roof

TOI Epaper
09 Jan 2007

Madhurima Nandy
Mumbai


(Above) Construction work underway 24/7 at Jupiter Mills SOUMITRA GHOSH/HT

REAL ESTATE prices in central Mumbai could rise because developers are expected to bid higher-than-market rates for the National Textile Corporation’s proposed auction of four mills in Worli and Parel, real estate consultants said.

The sale will free up 40 acres of land to private developers in this land-starved city, an area that is twice that of the Oval Maidan and thrice that of the Cooperage.

The textile company plans to sell the 18-acre Madhusudan Mill, its largest mill in Mumbai, Poddar Processors and Bharat Textile Mill, all three in Worli, and Finlay Mill in Parel.

The three mills in Worli could fetch more than the going rate of Rs 20,000 per sq ft and the one in Parel more than Rs 12,000 per sq ft, the consultants said.

“Prices will be as high if not more (than existing rates), with more developers coming in from out of Mumbai this time,” said Joy Gopal Sanyal, vice president at Trammel Crow Meghraj, a property consultant. He said these new developers might bid jointly for these bids with real estate funds.

Some consultants echoed a long-standing criticism of the government’s policy for mill lands, by pointing out that the city’s infrastructure could not bear the burden of further private development.

“There needs to be some method in the madness,” said Pranay Vakil, chairman of Knight Frank India. “There needs to be some regulation.” Real estate prices in Mumbai, which are among the highest in the world, had begun to rise at the end of 2004. They got a further boost when the National Textile Corporation auctioned its first set of five mills, Sanyal said.

Prices soared even over the period in which the company had sold these mills. It had sold Mumbai Textile Mill in mid-2005 for Rs 7,000 per sq ft. A month later, it got Rs 15,000 per sq ft for Kohinoor Mill.


NTC MILLS SOLD
Jupiter Mill, Lower Parel: 14 acres
Sold to: Indiabulls
Plans: Three towers office space

Mumbai Textile Mill, Lower Parel: 17.5 acres
Sold to: Jwala Realty
Plans: Biggest shopping mall

Apollo Mill, Chinchpokli
Sold to: Lodha Group
Plans: Lodha Bellissimo, an upmarket residential project

Kohinoor Mill No 3, Dadar: 4.9 acres
Sold to: Raj Thackeray-Unmesh Joshi partnered Kohinoor CTNL
Plans: Shopping mall coming up

Elphinstone Mill, Senapati Bapat Marg: 7.8 acres
Sold to: Indiabulls
Plans: Plans not yet known

NTC also plans to develop on its own:
India United Mill No 6
Where: Prabhadevi
Plans: India International Trade Tower, a 72-storeyed tower in the 11.96 acre mill.

Remaining NTC mills some of which will be sold and some will be functional:
Kohinoor Mill No 1 and India United Mill No 5, No 2, Dadar Kalachowkie Digvijay Mill, Lalbaug Tata Mills, Parel Gold Mohur Mill, Dadar New City, Kalachowkie India United Mill No 1, Poddar Mill, NM Joshi Lalbaug Marg


(Above) Madhusudan Mill in Worli

NTC MILLS TO BE SOLD
New Hind Mill – Mhada
Size: 8.33 acres
Where: Byculla

India United Mill No 4 – Mhada
Size: 7.79 acres
Where: Kalachowkie

Jam Mill – Mhada
Size: 7.99 acres
Where: Lalbaug

Sitaram Mills: MCGM
Size: 8.43 acres
Where: NM Joshi Marg

India United Mill No 2: MCGM
Size: 10.64 acres
Where: Kalachowkie

India United Mill No 3: MCGM
Size: 5.40 acres
Where: Kalachowkie