Orbit to buy Andheri land for over Rs 150 cr

The company has plans to build a high-end commercial complex for IT and ITES services on the property which lies on Andheri Kurla Road and near the office hub Sakinaka.

According to property consultants, at Rs 3750 per square feet of land, it is a good deal for the company as commercial property is being sold at around Rs 10,000 per sq ft in the office areas of Andheri. With a construction cost of Rs 2,500 per sq ft, the company can make a decent profit of over 30 per cent, consultants said.

When contacted, Ramashraya Yadav, head of finance at Orbit Corporation, said: "We are mulling over it'.' However, he did not disclose other details.

"As Andheri-Kurla Road is developing fast, there is high growth potential for the land. It is a good bet for the company,'' sources said.

According to sources, Orbit has also initiated talks with 2-3 foreign and domestic funds to buy the 35-storey Hafeez Contractor house at Lower Parel area of Mumbai. Earlier, it was in talks with Kotak Realty Fund to sell the property, but both parties did not agree on valuation of the property. According to sources, the valuation of the property is at Rs 700 crore to Rs 800 crore.

The company is looking at a REIT structure wherein these funds would buy the developed property and then lease it out. It is also exploring other options, sources added.

In August last year, Orbit sold its commercial property at Kalina area of Mumbai to Sajjan Jindal group for Rs 807 crore.

Orbit has completed many premium residential projects in South Mumbai such as Shivam and executing a number of luxury projects such as Villa Orb, Orbit Arya in Island city. Besides, Hafeez Contractor House, Orbit is also developing Orbit World Trade Centre in Bandra Kurla Complex and Orbit Plaza in Kalina.