Track2Realty: DTZ has brokered the sale of US Consulate’s Washington House in Alta Mount Road in South Mumbai to Lodha Developers at the rate of approximately Rs. 140,000 per sq meter or USD 28,000 per sq meter.
Lodha Developers of Mumbai purchased Washington House located at the super premium residential area of Alta Mount Road in South Mumbai at the rate of approximately INR 140,000 per sq meter or USD 28,000 per sq meter. The consulate had owned and maintained this property since over last half-decade, and it is now likely to be redeveloped by the Lodhas as prime residential apartments.
The US Consulate officials stated that they are very happy with the transaction, having achieved a good price in a turbulent financial market. They are confident about closing the other ongoing transactions in the new year.
“In sharp contrast to the prevailing trend, this deal reflects the continuing interest of buyers in premium areas like South Mumbai and Bandra, even as apartments stockpile as inventories across the country, and the developers remain under pressure,” Aniruddh Wahal, Co-head, Investment Advisory, DTZ-India.
Recently, India’s central bank RBI issued guidance for lending banks to strengthen measures for debt recovery from the defaulting developers which is significantly adding to the NPAs of Indian banks. Also, this is a deal that follows closely on the heels of the recently concluded other acquisition by Lodhas in Southern Mumbai where they reportedly paid USD 500 mn a mill land parcel, originally purchased by India’s largest developer DLF.
The Washington House which measures 2712 sqm has no building norm restrictions and can be redeveloped as residential apartments.
The US Consulate had put two properties, Lincoln House and Washington House, for sale in the month of June last year with a reserve price of INR 850 crore (USD 170 mn) and INR 350 crore (USD 70 mn) respectively for Lincoln and Washington.
