Realty developer Runwal Group is set to buy an 8-acre plot close to the Sanjay Gandhi National Park in Mumbai's Borivalisuburb for around Rs. 550 crore, people familiar with the matter said. The land is part of 22 acres owned by Cable Corporation of India. CCI Projects, an associate company of Cable Corporation of India, was earlier looking to develop the entire land.
“Runwal has recently concluded the due diligence for this transaction and has also signed the term sheet for the same. The buyer is expected to pay the consideration over the next three months,” one of the people said.
Cable Corporation of India didn’t respond to an email seeking comment till press time Friday, while Subodh Runwal, a director at Runwal Group, declined to comment.
In the backdrop of increasing preference for forming alliances and undertaking joint developments of land holdings, this will be one of the few instances of an outright purchase.
Several realty developers have reworked their business strategies to focus on asset-light models such as joint developments to reduce upfront capital costs.
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