Raymond open to develop its own land
Posted On The Times Of India , Nov 29, 2013
After its attempt to reach an agreement with a local developer to sell 9.4 acres of a 125 acre plot it owns in Thane fell through, textile major Raymond is learnt to be contemplating developing this land on its own. In a surprise move, the company has recently submitted a proposal to the state government seeking environment clearance for the prime piece of property.
The proposal will come up for hearing before the state environment assessment committee soon. A senior Raymond management official confirmed the proposal. “The company is getting the clearances in place. We are open to the option of selling the land and also developing it on our own,” said an official. In 2012, the company’s talks with the developer to sell the land fell flat after the developer, said to be Cosmos Group, cited financial constraints (the sales price quoted was approximately Rs 150 crore) and that the project was unviable due to reservations and located close to slums as reasons for not inking the deal. Real estate consultants said that if Raymond decides to develop the land on their own, it would be logical. “Logical because Raymond has appointed Milind Pathare, who has worked with several leading developer firms to head their real estate section. The company’s management may also take a cue from the Ajay Piramal Group, who have expanded from their core expertise to setting up their own real estate company,” said an industry expert.
Whatever Raymond’s decision is, real estate consultants say the reason why the deal didn’t go through was because the company’s expectation was high. “If the deal had happened, it would have been an expensive land deal at approximately Rs 15 crore an acre against the average land price in Thane,” said a consultant. Meanwhile, big players like Shapoorji Pallonji, Oberoi, Kalpataru and Runwal are also in talks with the Singhanias to purchase the remaining 110-plus acre of factory land. But, talks are not moving ahead as Raymond is insistent on getting approximately Rs 1,800 crore to Rs 2,000 crore for his property.