JK lnvesto Trade (India) Limited (JKIT), an associate company of Raymond has entered into an agreement for sale (AFS) for its 20 acres Thane property with Elpis Ventures Private Limited, an affiliate of Virtuous Retail South Asia Pte. Ltd for ₹700 crore.
"The land parcel at Raymond Junction adjoining the Singhania School has a significant advantage in terms of its location and this deal is seen to be iconic as it will bring in significant commercial development in Thane," said a company statement adding that the deal is subject to payment of taxes, cost of approvals, as applicable and terms & conditions set out in the AFS.
Commenting on the development, Gautam Hari Singhania, Chairman & Managing Director, Raymond Limited said, "The sale of JKIT land parcel is a major step towards our strategy of asset monetization and value creation for our shareholders. I am delighted to state that this land deal, which is a large FDI in terms of real estate in Thane will bring in the much required state of the art commercial and retail development and will lead to multiple job creation along with sustainable long term employment opportunities.”
Raymond shares were trading up over 9% at ₹599 in a firm Mumbai market on October 9 morning.
'Raymond Realty'
"Given the fact that our residential project, 'Raymond Realty' is underway, this development will ensure a vibrant real estate eco-system within its vicinity offering home buyers a better choice. Virtuous Retail South Asia is known for developing high performance retail environments. Overall this landmark deal would give the much required impetus to Thane's real estate development in terms of residential, retail and commercial space," Mr. Singhania added.
Commenting on the acquisition, Sid Yog, Founder and Chairman of the Board, VRSA, said, "Prime land parcels of this size seldomly trade, especially in major metropolitan markets like Mumbai. We have been waiting patiently for the ideal opportunity to expand our portfolio in the Mumbai region."
Sponsored by the emerging markets investment firm The Xander Group Inc., Virtuous Retail South Asia develops and manages community-oriented retail and lifestyle centers across India.
"We envision a vibrant, 24/7, people-centric development that will draw upon the heritage and history of the region, bolster tourism, create thousands of new jobs, and make a major contribution to the local economy and community," Mr. Yog added.
