Birla Estates buys land parcel in Mumbai to build luxury homes

New Delhi: Realty firm Birla Estates on Monday said it has purchased a land parcel in South Mumbai to develop a premium housing project and is expecting a sales revenue of more than Rs 600 crore from this upcoming property.

Birla Estates, which is the real estate arm of the Aditya Birla Group housed under Century Textiles and Industries Ltd, did not disclose the size of the land parcel and also the deal value.

With a surge in housing demand post the second wave of the COVID pandemic that hit India in April-June 2021, real estate developers are aggressively acquiring land parcels -- outright as well as through partnership with landowners -- to expand their businesses.

In a regulatory filing, Century Textiles and Industries Ltd informed that its subsidiary Birla Estates has acquired prime land parcel in South Mumbai’s upmarket residential area of Walkeshwar at Malabar Hill.

"The luxury project will hold a revenue potential of over Rs 600 crore," it said.

K T Jithendran, MD and CEO, Birla Estates said, "Our acquisition of this prime plot of land in Walkeshwar is a significant milestone for Birla Estates, as it aligns perfectly with our long-term growth strategy to create a niche in the luxury housing segment." "We are excited about the opportunity to create bespoke boutique residences in one of the most sought-after locations in South Mumbai," he said.

Birla Estates currently has many projects across key markets in the country. The company is developing land parcels both through outright purchases as well as asset light joint ventures apart from developing its own land parcels.

In the long-term, the company said it is focused on developing world class residential, commercial and mixed use properties and aims to be amongst the top real estate companies in India.

The company is headquartered at Mumbai and currently has regional offices in NCR and Bengaluru. It has a commercial portfolio with two grade-A commercial buildings located in Worli, Mumbai with around 6 lakh square feet of leasable area.

Last week, Ajmera Realty & Infra India Ltd acquired 5,017 square meters of land in Mumbai from Tata Communications for Rs 76 crore to build a residential project.

The land parcel, located at Vikhroli East, has been acquired by its subsidiary Shree Yogi Realcon Pvt Ltd in a bidding process for a total consideration of Rs 76 crore.

The acquisition is intended for residential development with an estimated gross sales value of Rs 550 crore.

According to real estate consultant CBRE, nearly 6,800 acres have been acquired by real estate developers and investors for more than USD 12.2 billion during 2018-22 period to construct greenfield realty projects.