In the most expensive land transaction in Pune, realty developer Marvel Realtors has acquired a 3-acre land parcel auctioned by the Federal Republic of Germany. MUMBAI: In the most expensive land transaction in Pune, realty developer Marvel Realtors has acquired a 3-acre land parcel auctioned by the Federal Republic of Germany for Rs 168 crore. The developer has paid Rs 56 crore per acre price for the land parcel at Pune’s Boat Club Road, a prime location in the city.
Around 10 real estate developers from Pune and Mumbai had shown initial interest in the property that used to house hostel for students of Goethe-Institut Max Mueller Bhavan, Pune. However, the hostel has been shut for more than five years now.
The land parcel was put on the block nearly six months ago by the Consulate General of Germany. Out of the initial 10 entities, five were shortlisted and were asked to send in their revised closed bids.
“We are planning to develop a luxury residential project on the land parcel and with total development potential of 3.80 lakh sq ft, it will offer us revenue worth Rs 800 crore over the next four years,” Vishwajeet Jhavar, CEO, Marvel Realtors, told ET. The company is aiming to complete the project in four years after receiving the approvals that are expected in the next six months, he said.
The developer has partnered Piramal Fund Management for the project and both the entities will hold equal stake in the upcoming luxury residential venture. The fund is infusing a total capital of Rs125 crore in the form of debt.
“We are pleased to deepen our ties with Marvel in Pune and are even more pleased to have secured an attractive and extremely well located development site. We constantly endeavor to deepen our funding relationships with existing partners and Marvel has delivered on our expectations across previous investments,” said Khushru Jijina, Managing Director, Piramal Fund Management. “We are happy that we are Marvel Realtors’ strategic partner not only in land acquisition but also in project related decision making.”
This is Piramal Fund Management’s fourth equity transaction in Marvel Realtors’ projects over the past three years. Since February 2013, the fund has invested more than Rs 430 crore in the developer’s projects including this investment.
While Marvel Realtors emerged as the highest bidder, the deal was concluded on Tuesday following an approval from the Parliament of Germany. India’s ministry of finance has also approved the transaction.
Currently, Marvel Realtors’ has a total of 15 million sq ft under construction in Pune and this will be the developer’s ninth project in Boat Club Road and Koregaon Park locality of Pune. It also has few projects in Bengaluru and Goa.