Rs 25 cr deal stirs Park Street

Developers plan to build ladies' only boutique mall on 50 cottah prime property

Jute baron Arun Bajoria has sold prime property off-Park Street for Rs 25 crore, setting a benchmark in terms of pricing in commercial properties.

The 50-cottah property has been acquired by the Avani Group and would be developed into a boutique mall.

Aniruddh Daga of Avani group said the mall would require investment of around Rs 50 crore.

Construction of the mall, to be named "Avani Galleria", would commence in 10-15 days and the project would be completed in 15-18 months' time.

The mall would have built-up space of 1.10 lakh square feet and would have 21,000 sq.ft. for car parking.

Real estate industry sources said, the property transaction has set a benchmark in pricing of commercial properties.

The cost of acquisition was around Rs 50 lakh per cottah, making it one of the costliest acquisitions in recent times.

However, Kolkata has been witnessing a realty boom and properties had given good returns over the last couple of years.

The return on investment in properties in premium locations have given a return of around 25-30 per cent, with larger plots fetching better returns.

Premium locations meant properties ideally located for development, irrespective of which part of the city it was situated.

Plots without proper frontage, for example, had not not appreciated much in value.

Sources close to Bajoria said the property had fetched a high price because of its positioning.

"Most of Park Street was cluttered with saree shops. Given the great demand for fashion outlets in Kolkata today, the mall appears well-timed" said the source.

The mall was conceptualised by Bajoria and then sold as such to the Avani group.

The mall would retail garments, fabrics, accessories and would also have dining options.

Daga said Avani Galleria would be a thematic mall, primarily targeted at women shoppers.

The mall would cater to the middle class and upper middle class segments.

Avani said it would approach the state government to relax the regulations for working hours.

It would like to make the mall suitable for a night bazaar as well.

Daga said the labour department would have to be approached for the purpose.

Arun Bajoria, a major player in the jute industry and stock market investor, was also a prominent owner of real estate in Kolkata.

He was directly developing some plots.