Reliance Nippon Life Insurance leases 40,000 sq ft at Adani Inspire in BKC – ET RealEstate

MUMBAI: Reliance Nippon Life Insurance (RNLI) has taken a 40,000 sq ft space on a five-year lease at an Adani Realty project in the BKC business district to house its corporate headquarters, officials said on Wednesday.

Rental details of the transaction, one of the largest in recent times, were not immediately available.

“RNLI has signed up to have 40,000 sq ft in Bandra Kurla Complex‘s (BKC) Adani Inspire for five years,” a source said.

When contacted, RNLI’s chief executive and managing director Ashish Vohra confirmed the development while officials at Adani Realty were not available for comment.

“Corporate office relocations are a matter of long term commitment and the recovered business sentiment regarding the value of life insurance product gives us the confidence to make this decision. BKC is a prominent and centrally-located business district,” Vohra told PTI.

This is the second big deal clinched by Adani Realty for the 8 lakh sq ft project in BKC, after Japanese lender MUFG took 30,000 sq ft in the commercial property on a ten-year lease. A slew of banks, finance companies and insurance players have their head offices in the BKC business district.

The city’s realty market had been impacted because of oversupply and high prices, which only aggravated because of the economic impact of the pandemic. However, policy measures like a halving of duties for a limited period and interest rates being at 15-year lows have led to some revival.

The pandemic and the ensuing shift to work from home models because of the lockdowns had resulted in concerns for the commercial realty market, as there is a view that demand for space may be hit as companies may not require space to house staff.

RNLI will be moving to the space from Reliance Centre in nearby Santacruz, whose possession has been taken over by Yes Bank for non-payment of loans.



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Demand for luxury residences in Mumbai set to rise in 2021; prices to remain flat: Report – ET RealEstate

MUMBAI: The demand for luxury residences in Mumbai is expected to rise significantly in 2021, while prices are likely to see a flat annual price change despite the buoyancy in demand for the prime properties, said property consultant Knight Frank.

Prices of prime residential properties across the top 22 global cities, on average, are expected to remain static in 2020, before rising by 2% in 2021, Knight Frank’s Prime Global Forecast 2021 report said.

It expects 20 of the 22 cities to see prices remain flat or increase in 2021, a slight reversal of the trend seen in 2020, where analysts expect nine cities to end the year with lower prices.

“With the modest price correction in the Indian real estate sector, post-lockdown, the luxury market has seen significant traction. Buyers are responding favourably to residential purchase across segments including luxury as sale prices have corrected in the last few quarters making investment in property attractive. It is also not surprising that those markets that are already witnessing an economic rebound have moved higher in the rankings in this quarter,” said Shishir Baijal, CMD, Knight Frank India.

During the quarter ended September, Delhi’s prime residential market performed better than Mumbai and Bengaluru. Globally, the city ranked 27th with a 0.2% annual price change; with a sequential price decline of 0.1%.

Mumbai ranked 33rd with 1.3% annual price decline until the end of third quarter; the city also saw a sequential decline of 0.7% price change. Bengaluru property market ranked 34th with an annual price decline of 1.4% for the period with a 1.5% sequential price decline during the third quarter.

Shanghai and Cape Town lead the forecast for 2021 with annual price growth of 5% forecast in 2021 whereas Buenos Aires is expected to be the weakest-performing global city, with prime residential prices falling by 8.0% during the period.



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Former BMC commissioner Ajoy Mehta buys Nariman Point flat for Rs 5.3 crore – ET RealEstate

BY: Varun Singh

MUMBAI: Former municipal commissioner Ajoy Mehta, who was also the chief secretary of the state, has recently bought a flat in Nariman Point for Rs 5.3 crore. Mehta is currently the chief advisor to Chief Minister Uddhav Thackeray.

The flat that Mehta bought is located on the 5th floor of Samata Co-operative Housing Society, on General Jagannath Bhosale Marg near Mantralaya. The carpet area of the flat is 1,076 square feet. The deal was finalised in October. Along with the apartment, Mehta has got two car parking spots in the building.

Mehta confirmed the deal to Mirror and added that he had bought it at market rate and that the documents are in the public domain. The market price of the flat is Rs 5.33 crore.

Mehta paid Rs 2.76 crore via RTGS, Rs 2.5 crore has been paid by him via a post-dated cheque of October 4, 2021. Rs 3.97 lakh (Rs 3,97,500) has been deducted as tax at source.

According to documents available, the stamp duty of Rs 10.68 lakh has been paid by the seller, Anamitra Properties Pvt Ltd, based in Pune. Anamitra Properties bought this flat in 2009, for Rs 4 crore from Ashish Manohar, son of late Justice Sharad Manohar. Ashish was the only legal heir of Justice Manohar, who died on October 4, 2000. The wife of Justice Sharad Manohar and his daughter had died earlier.

The Mumbai collector, on August 28, 2020, had granted the seller permission to transfer the flat by paying a transfer fee of Rs 16.80 lakh. This amount was also paid by the seller of the property. The seller, Anamitra Properties, did not respond to a detailed email sent to them regarding the deal.

About Mehta Mehta, a 1984 batch IAS officer, took over as the state chief secretary in May 2019. Before that, he had served as BMC commissioner for four years. He was to retire on September 30, 2019, but in view of the 2019 assembly polls, he was given an extension of six months, which was ending on March 31. He then got another extension, this time for three months, due to the Covid-19 pandemic. He retired on June 30. He was then appointed as principal advisor of Chief Minister Uddhav Thackeray.



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Mumbai: Stalled since 2013, Orbit Corporation’s project hits fresh roadblock – ET RealEstate

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MUMBAI: Hundreds of buyers of flats in the Orbit Corporation’s budget housing project in Andheri, who were hoping that the project stalled since 2013 would take off after the developer settles the debts, have been disappointed once again.

The project has hit another roadblock with the ready reckoner rate (RRR) of one of the two plots being pushed up by 136 per cent from the original rates “completely jeopardising the viability of the project.”

With a changed sub-division number, Orbit Residency Park’s RRR for one of the two plots, which was earlier Rs 38,100 for every square metre, has now been jacked up to Rs 89,770 for the financial year 2020-21. The second plot’s RRR continues to remain consistent at Rs 38,100.

The project comprises six towers with 281 residential units and six commercial units.

The project is currently under an Interim Resolution Professional (IRP) appointed by the National Company Law Tribunal (NCLT) after Ahinsa Buildtech Pvt Ltd, a subsidiary of Orbit Corp that has undertaken the project, was dragged to the law tribunal by one of its creditors. As per procedure, the IRP had invited applications for a resolution plan, through which the project would be completed.

This resolution plan, flat buyers say, is the only hope that one day they would be living in the houses they purchased 10 years ago.

The flat buyers under the umbrella unit of Orbit Residency Park CHS were one of the six entities to submit their applications showing interest in completing the project. However, with the hiked up RRR, they say, the project is no more viable.

Not only the home buyers, the resolution professional, Vivek Lulla, has also written to the Collector of Stamps and IGR Registration asking them to restore the RRR to what it originally was.

Explaining the impact the changed RRR will have, Sarju Saini, who leads the flat purchasers’ group, said that fresh approvals will be required from the BMC and certain premiums will have to be paid which are all linked to the RRR. Moreover, the sale agreements for many flat buyers couldn’t be registered, and now they will be charged stamp duty at these new rates.

“The people who have booked their flats are from middle class backgrounds, and they invested their life’s savings in this project 10 years ago. The flat buyers have already suffered huge financial losses and mental agony due to delays in the project. This project was supposed to have been completed in 2014, and the flat owners have, so far, collectively paid Rs 155 crore towards their instalments. The only hope they now have is that the resolution process is initiated under NCLT,” the resolution professional said in the letter.

In 2009, Pujit Aggarwal, promoter of Orbit Corporation, started accepting bookings for several projects in the city, some of which were SRA projects, some redevelopment projects, and some new constructions like the one in Saki Naka, promising flats by 2013. For this, Aggarwal took loans from several banks and non-banking institutions.

He took a loan of Rs 325 crore from LIC Housing Finance Limited for three projects – Orbit Residency, Orbit Grand, a luxurious redevelopment project in Lower Parel and for another project in Lalbaug.

The promoter also used these projects as security against his loans.

However, by 2015, after making part payment, Aggarwal had defaulted on most of his loans. Flat buyers of Orbit Residency Park, in Saki Naka, had approached the High Court, willing to buy back their project but were directed to NCLT after the sister company’s insolvency proceedings.



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