Mumbai: One of the last remaining film studios in the eastern suburbs of Mumbai will soon pave way to a residential high rise as K Raheja Corp Real Estate has signed a development agreement with Cinevista to develop its studios at LBS Road, Vikhroli. In another deal, Macrotech Developers of the Lodha Group has picked up a plot in Bhandup, on the same road, from HDFC Ltd.
Both the transactions have happened in a span of just over a month. K Raheja Corp – Cinevista development agreement was registered on May 29, whereas, HDFC Ltd – Macrotech Developer deal was registered on April 24.
Raheja Corp to have 75.50% market share
In case of the film studio property, during and post property’s development, K Raheja Corp will have 75.50% market share and the balance 24.50% by the landowners of this 3.91 acre plot.
The agreement value has been put at Rs 78.35 crore and a stamp duty of Rs 13.60 crore was paid, as per the documents available from CRE Matrix – a real estate data analytics firm.
At this film studio, mostly television serials were shot. Back in 2018, a portion of it had got engulfed in flames. Similar to R K Studios in Chembur, which too had caught fire and later acquired by Godrej Properties, the studio’s company too started to scout for proposals to monetise their asset.
Back in November 2020, Ashwin Sheth Group was on the verge of acquiring the same film studios and was to register the deal for about Rs 260 crore, but it eventually fell through.
Total value of plot stands at ₹350.43 crore
Going by the agreement value and the share between K Raheja Corp and Cinevista, the total value of the plot works out to be Rs 350.43 crore, approximately Rs 90 crore more than what Ashwin Sheth Group had almost picked it up for.
Year-on-Year, Cinevista’s loss has been widening from Rs 9.54 crore for the year ending March 31, 2021 to Rs 16.49 crore in FY22 and Rs 27.98 crore as on March 31, 2023.
Earlier, Kamalistan Studios along the Jogeshwari Vikhroli Link Road too went to a developer to replace it with a commercial complex.
Sources from the industry have indicated that one more premium residential high rise will dot Vikhroli – Kanjurmarg’s skyline with this development coming up over the course of next four years.
Macrotech buys ₹70 crore land on LBS Road
In another transaction, Macrotech Developers of the Lodha Group has purchased 6.86 acre of plot on LBS Road, Bhandup from HDFC Limited for Rs 70 crore.
As per the data available from Propstack.com, Rs 27.28 crore was paid towards stamp duty and the documents were registered on April 24, 2023.
Earlier, 8.80 acres of the Bhandup plot was owned by Neptune Ventures & Developers. It had secured Rs 250 crore from HDFC Ltd for its project ‘Flying Kite’ and ‘Eleve’, the repayment of which ballooned to Rs 372.91 crore by February 2023. Construction work on project ‘Eleve’ has not even begun.
A few years ago, HDFC Ltd seized the possession of the plot on account of loan recovery. Other than the land parcels where these projects are “ongoing”, the remaining real estate portion of 6.86 acre has now been sold to Macrotech Developer.
