This story is from September 22, 2006

Mukesh buys twin towers for Rs 200 cr

Tinesh Bhasin / TNN / Sep 22, 2006, 00:08 IST

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The group has purchased two multi-storied residential towers from ICICI Bank for an undisclosed sum, according to sources.

MUMBAI: The Mukesh Ambani-led Reliance Group is on a property buying spree in Mumbai. The group has purchased two multi-storied residential towers from ICICI Bank for an undisclosed sum, according to sources.
Though the size of the deal remains unknown, sources estimates the deal to be over Rs 200 crore.
"A conservative estimate of the cost to finish the residential tower is Rs 10,000-12,000 per sq ft," said a source heading a real estate fund.The towers measuring two lakh sq ft are a part of Hindoostan Spinning and Weaving Mills, located close to Mahalaxmi railway station. ICICI and Reliance group officials were unavailable for comment.
The residential towers are under construction and were committed to ICICI Bank by a joint venture (JV) between the CL Raheja-promoted K Raheja Corp and Thackerseys, owners of Hindoostan Spinning and Weaving. Around two years ago, the JV was formed to exploit a whopping nine lakh sq feet of real estate.

The Thackerseys were required to clear debts they own to various lending institutions before they start developing the property. ICICI was the biggest lender and the two residential towers were committed to the bank as part of aloan repayment, market sources said.
According to the original plan for development of the plot, the partners had decided to construct residential as well as commercial towers. The proposal was to develop five wings of residential towers of 23 storeys each.
"A shopping mall was also part of the project," a market source said.
For the elder Ambani, this is the second biggest property deal after the Bandra Kurla Complex joint venture for property development.
Reliance went into a JV with Makers Group to construct one of the biggest commercial complex in BKC on the Drive-In theatre plot.

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