For Rs 476 crore, K Raheja Corp buys South Mumbai's SoBo Central Mall.

Photo-Commonfloor

K Raheja Corp has acquired the esteemed Sobo Central Mall located in the vibrant Haji Ali area of South Mumbai for a substantial sum of Rs 476 crore from Kishore Biyani's Bansi Mall Management Company (BMMCL), as revealed by property documents obtained by Propstack.com. Notable for his successful ventures such as Pantaloon Retail, Big Bazaar, and the Future Group, Biyani's decision to part with the mall marks a significant transaction in Mumbai's real estate landscape.

The acquisition encompasses not only the mall but also the accompanying land spanning 5,357 square meters, with a built-up area of 9,873 square meters, alongside 1,579 square meters designated for common areas and facilities, as outlined in the documents. This substantial investment was officially registered on April 08, 2024, with the total consideration amounting to Rs 476 crore. Stamp duty for the transaction totaled Rs 28.56 crore, with an additional Rs 30,000 allocated towards registration fees.

SoBo Central Mall, situated near the iconic Haji Ali shrine, holds historical significance as Mumbai's pioneering shopping destination, initially known as Crossroads Mall upon its inception in the late 1990s. However, despite its illustrious past, the mall faced financial challenges in recent times, with lenders, led by Canara Bank, owed over Rs 700 crore. The changing landscape of Mumbai, coupled with the emergence of newer malls across the city and shifts in population demographics, contributed to the mall's diminished prominence over the years.

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Amidst the transactional intricacies, queries directed to K Raheja Corp remained unanswered, while attempts to reach BMMCL for comment were unsuccessful. However, industry analysts point to a positive outlook for the retail sector, as highlighted in a recent report by CBRE India, a renowned real estate consultancy firm. The report forecasts a sustained leasing activity of 6-6.5 million square feet in the retail sector for the year 2024, indicative of a stable supply environment bolstered by the completion of several high-quality mall developments.

Furthermore, the report anticipates specific growth in the home décor segment, both online and offline, while fashion and apparel retailers are expected to expand their footprint, particularly in tier-I cities. This projection builds upon the momentum witnessed in 2023, which saw a notable 47 percent year-on-year growth in absorption, totaling nearly 7.1 million square feet in tier-I cities. Notably, Bangalore, Delhi-NCR, and Mumbai emerge as the primary drivers of leasing activity, collectively commanding a substantial 61 percent share in the retail sector's growth trajectory.

As Mumbai's real estate landscape continues to evolve, fueled by strategic acquisitions and shifting consumer preferences, the acquisition of Sobo Central Mall by K Raheja Corp underscores the enduring allure and potential of retail spaces in India's commercial capital. Amidst the ebb and flow of market dynamics, the retail sector remains a cornerstone of urban development, offering a vibrant tapestry of experiences for residents and visitors alike.

April 13, 2024 10:30 a.m. 4853

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