Runwal Group to acquire Cable Corporation land in Mumbai for Rs 550 crore

Mumbai-based property developer Runwal Group is in final stages of buying 8.8 acres of land in Borivali area of Mumbai from Cable Corporation of India (CCI) for Rs 550 crore or Rs 62.5 crore per acre, said sources in the know. This will be one of the biggest land sales in the country this year.

The land was part of 22 acres mortgaged by CCI with Indiabulls Housing Finance, of which CCI has sold 8.8 acres. CCI owed around Rs 300 crore to Indiabulls.

“CCI was in talks with many parties, but finally agreed to do the deal with Runwal," said sources. Runwal is expected to build an office and retail complex on the plot.

Subhodh Runwal, director at Runwal Group, said: “Like many others, we are evaluating the land. We have not finalised it.”  An Indiabulls spokesperson did not comment on the matter.  An email sent to CCI did not elicit any response till going to press. Market sources said the price quoted by Runwal was in line with markets.

This is the first property Indiabulls has sold this week after it sold One BKC office building in BKC area of Mumbai for Rs 1,600 crore. It is also selling Palais Royale building in Worli for Rs 700 crore, sources said.

Early this year, Godrej Properties bought a 27-acre plot in Delhi’s Ashok Vihar area for Rs 1,100 crore from the Rail Land Development Authority. Another Mumbai-based developer Kanakia Group bought 15 acres in Powai area for Rs 850 crore late last year from Skyline Mansions and  a private equity fund floated by Anand Jain.