Tata Housing buys KEC’s Thane land parcel for Rs 225 crore

MUMBAI: Tata Housing Development Company has acquired a 7-acre land parcel in Thane from KEC International for Rs 225 crore, said two persons familiar with the development.

“The deal was executed on Monday and the money is now expected to be paid in two tranches in the next few months based on certain milestones like approvals,” said one of the persons mentioned above. Tata Housing Development Co spokesman declined to comment for the story.

An email query sent to KEC International did not elicit any response until the time of going to press. KEC International had put the Thane plot, which earlier housed their cable manufacturing unit, on the block few months ago. The RPG Group company had shifted the unit to Vadodara, and was planning to monetise the land parcel since then.

The developer is likely to finance the transaction through internal accruals , said the person. The Tata Group company is planning to develop the plot into a high-end luxury project.

The project has total revenue potential of around Rs 1,000 crore, based on current property rates, said property consultants. The land parcel is expected to offer total development potential of 7.5 lakh sq ft.

On Monday, shares of KEC International closed at Rs 67.70 on BSE almost flat from Friday’s close.