Billionaire Ajay Piramal is set to reap another windfall through a Mumbai property deal.
According to sources, Piramal has plans to sell part of Gulita, his sea-facing property in Worli, Mumbai, for Rs 450-500 crore (Rs 4.5-5 billion).
Piramal has started initial discussions with a few high net-worth individuals to sell part of the property.
He has plans to keep a fourth of the property with him, while he will split the remaining portion into three units and sell it off through multiple deals, said people in the know.
In April 2012, Piramal Realty, the property development arm of the Ajay Piramal Group, bought this one-acre property from Hindustan Unilever Ltd for Rs 452 crore (Rs 4.52 billion).
His initial plan was to reconstruct it into a luxury residential complex for his own purposes.
Piramal is looking at a rate of around Rs 150 crore (Rs 1.5 billion) for each unit and the total value would be Rs 450 -500 crore for three units together, sources said.
A Piramal Group spokesperson said: "We do not want to comment on market speculation."
When he bought Gulita, Piramal had outbid two finalists -- Anil Ambani and Gautam Adani -- who were believed to have quoted between Rs 350 crore (Rs 3.5 billion) and Rs 400 crore (Rs 4 billion).
According to investment banking sources, one of the persons who has shown interest was Ajay Mittal, chairman of logistics firm Arshiya International.
When contacted, MittalĀ denied this information.
According to media reports, Mittal was interested in buying the South Mumbai-based Morena House, owned by steel tycoon Sajjan Jindal.
Morena House is a one-storey
Image: Ajay Piramal | Photograph: Arko Datta/Reuters