Mumbai: Bengaluru-based Prestige Group has purchased 2.3 acres of land at Marine Lines from DB Realty’s arm for ₹704 crore. The deal was formalised even before the latter applied with the housing regulator for deregistration of the project.
The land parcel is located on Maharshi Karve Road, next to SK Patil Garden. DB Realty’s subsidiary Marine Drive Hospitality & Realty had been planning two skyscrapers on the plot of 67 and 73 floors.
Titled Ocean Tower (Phase I & II), they were to be one of the tallest structures in India. The project was planned to have apartments in the configuration of 4, 5 and 6 BHKs.
A total of 20 flats in the project were sold to different people. The allotment of all these 20 flats have now been cancelled and all the allottees have been refunded the entire amount, states the agreement inked between the two developers, shows the documents accessed via CRE Matrix, a real estate data analytics firm.
The transaction between the two developers was registered on April 18 this year for ₹704 crore and ₹42.24 crore was paid in stamp duty.
Suggestions and objections from homebuyers
On June 2, the Maharashtra Real Estate Regulatory Authority (MahaRERA), on DB Realty’s application, first put up both the phases of Ocean Tower for deregistration and on June 19 extended the timeline for another fortnight to receive suggestions and objections from homebuyers.
Marine Drive Hospitality & Realty had availed loans from Edelweiss Asset Reconstruction Company, RARE Asset Reconstruction and Edelweiss Finvest. The proceeds from the transaction got utilised towards repayment of the debt. Edelweiss Asset Reconstruction Company had an exposure of ₹625 crore, that was repaid from the deal. Another ₹35 crore was repaid to RARE Asset Reconstruction, while the balance of ₹44 crore was paid prior to the registration to Marine Drive Hospitality & Realty.
As per the financial results of FY2023, year-on-year, DB Realty’s net loss soared to ₹118.98 crore from a profit of ₹110.82 crore in FY2022.
