Clariant Chemicals to sell 87 acre land to Lodha Group for Rs 1,154 crore

MUMBAI: Clariant Chemicals (India) has entered into an agreement with Mumbai-based realty developer Lodha Group to sell its 87-acre land in Thane for Rs 1,154.25 crore, the specialty chemical maker said in a statement to stock exchange.

"The company has entered into an agreement to sell its land located in Kolshet, Thane, aggregating to about 87 acres to M/s Ishwer Realty and Technologies Private Ltd (a subsidiary of Lodha Developers Pvt Ltd) for an aggregate consideration of Rs 1,154.25 crore," the company said.

The Swiss specialty chemicals maker had earlier shortlisted four Mumbai-based real estate developers for selling this land, with development potential of 6 million square feet. Apart from Lodha Group, Kalpataru Group, Oberoi Realty and Runwal Group were the other contenders for this land, according to persons familiar with the development.

Current property prices at Kolshet in Thane, where the land is situated, are hovering around Rs 8,000 per sq ft. Of the 87 acre, 23 acre is freehold while Clariant Chemicals has a lease for the remaining. The transaction is subject to customary closing conditions and is subject to relevant approvals and permissions from the government and other statutory bodies, as may be necessary, the notice added.

Clariant is selling the land parcel on "as-is-where-is basis" and the winning bidder is expected to secure the consent of the authorities for further development.

Lodha Group is planning to develop residential projects on the parcel, and expects to have all permissions in place in 12 to 18 months, the developer said in its release. "Thane is a rapidly developing part of the Mumbai metropolitan region and we see strong, sustained demand for quality homes in the region," said Abhinandan Lodha, deputy managing director, Lodha Group.

Clariant Chemicals initiated the process to sell the land following approval of the company's board in July. The company's board has also approved relocation of its Masterbatches plant from Kolshet to Renaissance Industrial & Warehousing Complex at Bhiwandi in Thane.