Runwall group close to buy Compton Greaves land in Mumbai for Rs 1,015 crore

The 35 acre plot is located in LBS Marg, Kanjurmarg

Mumbai-based Runwall group is in the final leg of discussions to buy engineering company Crompton Greaves' 35 acre land parcel in eastern suburbs of Mumbai for Rs 1015 crore, according to a executive in the know.

The plot is located in LBS Marg, Kanjurmarg.

Though several real estate developers such as Lodha group, Oberoi Realty were in the fray, Runwal has emerged as the front runner to buy the plot, said the executive. "They are in the final stage of discussions," he said.

At the rate, the valuation of land parcel comes to Rs 29 crore per acre which is similar to ongoing land valuations, consultants said. Residendtial prices hover around Rs 12,000 per square feet.

Runwal is expected to build a residential housing project on the plot.

When contacted, Runwall Spokesperson declined to comment on the matter. A Crompton Greaves spokesperson said: "As a policy at CG, we do not respond to rumours and market speculation."

Currently, a factory stands on the plot which will be relocated to Gujrat, said sources.

Runwal's land buying is one of the many land deals that have taken place in Mumbai this year. In June this year, National Council for Performing Arts sold Bhabha bungalow to a member of Godrej Family for Rs 372 crore. Before that Oberoi Realty bought 25 acre land parcel of Tata Steel for Rs 1155 crore.

At at the company AGM this month chairman Gautam Thapar said CG was restructuring its business and will sell its non core assets to fund operations

As of March 2014, Crompton Greaves' total debt was Rs.2,395.99 crore.