Raymond sells 20-acre Mumbai plot to Xander arm for 700cr
Mumbai: The retail arm of private equity firm Xander has agreed to buy 20 acres of land in J K Gram, Thane from textile major Raymond Ltd for Rs 700 crore. The buyer, Virtuous Retail, will invest another Rs 1,700 crore to develop the site.
The plot at Raymond Junction adjoining the Singhania School has a significant advantage in terms of its location and Xander’s plan is to have a commercial office-cumretail complex there. Sid Yog, chairman, Virtuous Retail, said, “Prime land parcels of this size seldomly trade, especially in major metropolitan markets like Mumbai. We have been waiting patiently for the ideal opportunity to expand our portfolio into the Mumbai region.”
Once the centre is developed in Thane, 20 million-customer visits are expected annually. Besides, the centre will generate 4,000 jobs.
For Raymond, the Thane land sale forms part of its asset monetisation plans to pare debt. Raymond holds the Thane land, which used to house its textile mill, through associate company JK Investo and the net book value of the plot was about Rs 4 lakh in fiscal 2018.
After factoring in taxes, J K Investo will receive Rs 465 crore from the sale transaction. “This deal is a large FDI in terms of real estate in Thane...Given the fact that our residential project, Raymond Realty, is underway, the (retail project) development will ensure a vibrant real estate ecosystem within its vicinity offering home buyers a better choice,” said Gautam Singhania, CMD, Raymond.
The Thane textile mill, the flagship factory of Raymond, was set up in the pre-independence era. Nine years ago, the company pulled the shutters down on the mill due to market dynamics. After offering compensation to mill employees, Raymond received clearances to develop the land for mixed-use projects.