Oberoi Realty to buy GSK Pharma's Thane plot for Rs 555 crore

Oberoi Realty is set to acquire GlaxoSmithKline (GSK) Pharmaceuticals’ 60-acre land parcel at Thane, near Mumbai, for Rs 555 crore. This translates into a price of Rs 9.25 crore per acre.

GSK's board approved the land sale transaction in its meeting on Friday. “The proposed sale of land is subject to receipt of all statutory and regulatory approvals from the authorities concerned and signing of definitive documents between the company and Oberoi Realty in this regard,” GSK said in a filing to a stock exchange.

The company had received five to six bids for the land parcel and had indicated that the sale transaction would be concluded by December-end at the annual general meeting in July.

The 60-acre plot housed the company's manufacturing plant, which was set up in 1961. It was used for manufacture of active pharmaceutical ingredients (APIs). In 2012, the drugmaker shut down the plant as it was more economical to outsource APIs instead of manufacturing them. Over 300 employees were given voluntary retirement.

GSK has been looking to sell the Thane land parcel since 2014 but has been unable to conclude the sale till now because of complexities. This includes various government approvals such as land-use change. The land use of the parcel is industrial in government record and would need to be changed to residential. Media reports said that the company twice scrapped the bid since 2014.

In 2015, Cabot Corporation, a speciality chemicals manufacturer, sold a 30-acre plot in Ghansoli in Navi Mumbai to K Raheja Corporation for around Rs 210 crore.

In 2015, drugmaker Pfizer sold its plant in Thane to Vidhi Research and Development LLP for Rs 178 crore. In the same year, Pfizer sold its plant in Thane for Rs 178 crore to Vidhi Research and Development LLP.