Peninsula Land sells Lower Parel space for Rs 170 crore

MUMBAI: Peninsula Land has sold space in an office building in Lower Parel to financial services firms, including Tata Capital, National Realty, India Nivesh Insurance Brokers and Tata AIG Life Insurance, for Rs 170 crore, marking a bright spot in a rather gloomy commercial real estate market in Mumbai.

The company has sold around 1 lakh sq ft space spread over three floors in one of the two towers at Peninsula Business Park in the central Mumbai office district in the last one and a half month, more than one persons familiar with the development said. Peninsula Land officials remained unavailable for any comment for the story.

Until March 2012, the Ashok Piramal Group's listed real estate arm had sold six floors spread over 1,80,000 sq ft in the same building with space for commercial and information technology companies' offices.

Peninsula Land has so far sold space on the nine floors at average price of 17,000 for a sq ft, said one of the sources. Following these deals, the vacancy level in tower A has decreased from 80% to around 50%. Of the remaining eleven floors in the same tower, Peninsula Land is now planning to lease out two floors and sell the remaining nine on an outright basis.