Steel magnate Sajjan Jindal has finally cracked the deal to acquire Maheshwari House, a sea-facing three-storey bungalow at Nepean Sea Road in south Mumbai. Jindal has paid around Rs 200 crore to Manoj Maheshwari, who had stalled the transaction involving his other family members as sellers, said three persons involved in the transaction.
Last year, Jindal had paid Rs 300 crore to other family members as part of a Rs 500 crore transaction, making it one of the most expensive residential property deals in the country. Maheshwari, owner of a 25 per cent stake in the property, had then refused Jindal's offer and made a counter-offer to acquire the balance 75 per cent stake from him.
Maheshwari, who has now given consent for the sale, has made almost double of what his other family members received, taking the final deal value to over 500 crore. His consent also involves a go-ahead for transfer of another five-storey building on the plot for redevelopment. The deal between Jindal and Maheshwari was inked last week.
The bungalow and building are spread over more than an acre in one of the prime and most expensive localities in Mumbai. Property prices in this plush locality hover around Rs 85,000 a sq ft.
The building, Maheshwari Mansion, is controlled by a trust run by the Maheshwari family. Along with the bungalow, Jindal has entered into a memorandum of understanding for transfer of the building that will be subject to approval from the charity commissioner, said one of the persons.
Under the redevelopment plan to be executed by Orbit Corp, a new sea-facing bungalow with nearly 30,000 sq ft space will be built exclusively for Sajjan Jindal along with a luxury residential tower.
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Jindal May Share Revenue
The redevelopment will provide 1.2 lakh sq ft, of which around 40,000 sq ft will be for the 40-odd tenants of Maheshwari Mansion, while the rest will be available for free sale.
Jindal may also receive part of the revenue from the project as part of the development transaction with Orbit.
The three-storey bungalow with a sprawling porch and a large garden at the rear is close to the Consulate General of the Russian Federation.
According to one source, Jindal is planning to move into the new bungalow, once ready, along with his family. Currently, his family stays at his Walkeshwar bungalow - Jindal House - in south Mumbai. Last year, Sajjan Jindal had planned to sell another two-storey bungalow - Morena House - at Carmichael Road in south Mumbai, and was eyeing Rs 300 crore for the property.
But this was not pursued. Jindal had bought the bungalow, which was used to house the Belgian Consulate, four years ago for Rs 125 crore. Close to Morena House, Jindal also owns another bungalow-Jindal Mansion-which is used as headquarter of JSW Group.
Author: Kailash Babar and Reena Zachariah
Image courtesy: BCCL
Source: The Times of India
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