Godrej Properties Ltd has acquired legendary film actor, director and producer Raj Kapoor's bungalow at Chembur in Mumbai for around Rs 100 crore to develop a luxury housing project with a sales potential of Rs 500 crore.
The land was purchased from the Kapoor family, legal heirs of Raj Kapoor, the company said in a regulatory filing.
When contacted, Godrej Properties executive chairman Pirojsha Godrej told PTI: "The total size of the land is around 1 acre.
"We will develop a premium housing project on this land parcel."
"The project will have an estimated sales revenue potential of about Rs 500 crore," Pirojsha Godrej said.
He did not disclose the deal value citing confidentiality.
Sources said the deal value is around Rs 100 crore.
When contacted, real estate consultant Anarock chairman Anuj Puri told PTI: "The market rate of one acre land at Chembur will be Rs 100-110 crore.
"Chembur is a vibrant residential market with good connectivity to BKC (Bandra Kurla Complex)."
Puri said many developers have launched luxury projects in Chembur and the demand for such premium homes is strong across Mumbai city.
Godrej Properties said in a filing that the site is located at Deonar Farm Road, Chembur, Mumbai, adjacent to Tata Institute of Social Sciences (TISS).
In May 2019, Godrej Properties had acquired R K Studios in Chembur from the Kapoor family to develop a premium mixed-use project Godrej RKS.
The project is expected to be delivered this year.
Gaurav Pandey, MD and CEO, Godrej Properties, said, "We are pleased to add this iconic project to our portfolio and are grateful to the Kapoor family for entrusting us with this opportunity."
The demand for premium developments has been strong over the past few years, he said, adding this project will allow the company to further strengthen its presence in Chembur.
Commenting on the deal, film actor Randhir Kapoor -- son of late Raj Kapoor -- said, "This residential property in Chembur has been of great emotional and historical significance to our family.
"We are happy to once again associate with Godrej Properties to take forward this rich legacy for the next phase of development for this location."
Godrej Properties, which is part of the business conglomerate Godrej Group, is one of the leading real estate developers in the country.
It has a significant presence in Mumbai Metropolitan Region (MMR), Delhi-NCR, Pune and Bengaluru.
To expand business amid strong housing demand, Godrej Properties has acquired more than 15 land parcels so far this fiscal with sales potential of around Rs 28,000 crore and looks to add more land by March to construct new projects.
In an interview with PTI recently, Pirojsha Godrej had said the company's new business development -- which means acquisition of land parcels through outright purchases and joint ventures with landowners to build new projects -- will cross at least Rs 30,000 crore in the 2022-23 financial year, double than the annual guidance of Rs 15,000 crore.
On the operational front, the company's sales bookings rose 77 per cent year-on-year to Rs 8,181 crore in the April-December period of 2022-23 fiscal, as against Rs 4,613 crore in the year-ago period.
