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| NSE buys Kurla property for Rs 120 crore |
| BS Reporter / Mumbai May 14, 2009, 00:30 IST |
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National Stock Exchange (NSE) has bought 80,000 square feet office space from Unmesh Joshi-led Kohinoor City in Kurla, one of the central suburbs of Mumbai, for Rs 120 crore, making it one of the biggest property deals in Mumbai this year. Joshi is son of former Lok Sabha Speaker Manohar Joshi.
NSE, headquartered in the nearby Bandra Kurla Complex (BKC), paid Rs 15,000 per sq ft, which according to property consultants is a decent price given the current market conditions. Office properties in Kurla command a price of Rs 12,000-15,000 a sq ft.
“Ready office spaces get a good price as the supply is limited. Compared with BKC prices, the sale price is justifiable,” said Anuj Puri, chairman of Jones Lang LaSalle Meghraj, a property consultancy. BKC, which is 10 minutes drive from Kurla, commands a price of Rs 20,000-25,000 per sq ft.
In November 2008, banking major Standard Chartered had bought 250,000 sq ft office space in BKC for Rs 750 crore, wherein it paid Rs 30,000 per square feet. After that, no major property deal took place in the city as realty prices crashed.
Jet Airways and property developer Suntech Realty, which bought land from the Mumbai Metropolitan Region Development Authority (MMRDA) last year, are yet to pay the full price to the authority and have sought staggered payment.
Mumbai office rentals have fallen 35-40 per cent from their peak last year as corporates and institutions deferred leasing due to slowdown in the economy.
According to realty sources, NSE is expected to use the Kurla property for its operations as its main office in BKC is facing space shortage.
Kohinoor, which brought the 38-acre Kurla land from Premier Automobiles for Rs 90 crore in 2005, is developing a mixed-use township, which includes 3 million sq ft of office space.
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