JSW Steel seen in Rs 800-cr property deal

MUMBAI: In one of the largest land-cum-commercial-property deals in Mumbai, JSW Steel, promoted by the Sajjan Jindal group, is believed to have acquired Orbit Corporations’ 2.5-acre property in Kalina for over Rs 800 crore.

The Jindal group, which is expanding its steel operations, was scouting for a bigger corporate office in Mumbai. When contacted, Seshagiri Rao, director, finance, JSW Steel, said: “We are examining all the possibilities. We have booked Orbit's Lower Parel property. No decision has been taken on their other properties.”

ET first reported on August 6 that the Sajjan Jindal group was one of the interested parties for the Orbit Corporation property. Others in the fray included Reliance Retail and Rosy Blue.

The Jindal group had struck a deal with Orbit Corporation a few months ago to acquire the latter’s Lower Parel property. However, sources close to the development said the Jindal group now wants to buy the Kalina land in which Orbit is setting up a sophisticated commercial complex.

Orbit Corporation acquired the Kalina property from Gujarat Ambuja Cement early this year for Rs 330 crore. Orbit has now decided to sell the property, along with the land. However, Ramashrya Yadav, head, finance and strategies, Orbit Corporation, was non-committal. “Any key development will be first intimated to relevant authorities,” he said.

Acquiring land or dilapidated buildings in the island city and converting them into premium commercial property of residential towers is the business model of the Orbit Corporation.

The deemed-supply mismatch in the Mumbai property market has pushed commercial real estate prices to new highs. Over the past two years, commercial property rates in the BKC-Kalina area have registered around 100% rise.