Piramal Sunteck Realty, a joint venture between the Ajay Piramal group and Sunteck Realty, is in talks with banks, financial institutions and private equity firms to pay Rs 496 crore of dues to Mumbai Metropolitan Region Development Authority (MMRDA) by September-end.
In March last year, the Mumbai-based property developer through its unit, Starlight Systems, bought two residential plots with a developable area of 7,050 sq metres each in the Bandra Kurla Complex (BKC) from MMRDA. In the same auction, aviation company Jet Airways bought another plot in the BKC for Rs 816 crore.
Both Starlight and Jet have sought a staggered payment option from MMRDA for their bid amounts, citing the slowdown in the Mumbai realty market. After a long wait, MMRDA granted the extension till September 30.
Though Jet has paid Rs 339.72 crore to MMRDA of the Rs 816 crore it needed to pay, Piramal is yet to make any payment. “We are working on the payment. We are in talks with banks, financial institutions and PE funds for the same,” said Kamal Khetan, managing director of Piramal Sunteck Realty. However, Khetan refused to divulge the banks and funds he had spoken to. Initially, Piramal Sunteck was planning to use the land to expand its high-end residential project — Signature Island — at BKC, but is now planning to use it as a seperate project, as construction has already begun at Signature Island, Khetan said.
BKC rents are down to Rs 250 a sq ft now from Rs 400-450 at their peak in 2007-08, as offices and institutions relook at expanding their business in the aftermath of the economic recession.
Sunteck Realty, the listed entity, is also planning to go for a qualified institutional placement (QIP) of Rs 500 crore and has got approval for doing so.