Runwal Group to buy RMI land in Mumbai for Rs 180 cr

City-based luxury real estate company Runwal Group is set to buy over 2.7 acres land parcel of Rashtriya Metal Industries (RMI) at Andheri for a consideration about Rs 180 crore, sources close to the development said.

Runwal has signed a memorandum of understanding with RMI to buy the land parcel that houses RMI's office and factory. "The deal will be concluded in the next couple of months," a source told PTI here.

The company, which is present in luxury residential, townships and commercial spaces, is planning to develop this plot as a mixed-use development project.

When contacted, the Runwal Group refused to comment while RMI was unavailable for comment.

According to sources, property consultant JLL was the facilitator of the deal. However, when contacted, they too were not available for comment.

"This land deal is expected to be the third largest land transaction of fiscal 2019," an industry expert said.

This can be an indicator that post the GST and RERA regime, the realty sector is showing signs of revival, he added.

According to media reports, city based Kanakia Group has entered into an agreement with India Tube Mills to buy its 7 acre plot in Vikhroli in suburban Mumbai for Rs 363 crore.

Similarly, realty player Kalpataru had emerged as the highest bidder offering over Rs 280 crore for Mondelez India's approximately 8 acre land parcel in Thane.

"As the eastern suburbs and Island city is saturating, there is a renewed focus on the western corridor. Locations like Andheri on the western corridor are gaining interest from developers who want to expand their businesses," the expert added.