Golden Tobacco to Sell 5.5-Acre Land, Could Fetch Rs 100-cr

Source from:  The Economic Times (India) 08/23/2010

MUMBAI: Having shifted its manufacturing operations to Vadodara in Gujarat, cigarette-maker Golden Tobacco(GT) has put a 5.5 acre land parcel near the international airport on the block, which could fetch the company up to Rs 100-crore, say realty experts. The plot, located in the Marol Industrial Area near Chhatrapati Shivaji International Airport, is being sold by GT through an online auction. The reserve price for the land-parcel has been pegged at Rs 50-crore. GT has closed all manufacturing facilities in Mumbai and shifted to Vadodara, the company had said in a note recently. The company had reportedly sold a property in suburban Vile Parle to a private developer for Rs 591-crore early this year. A realty expert said the final bid amount could touch Rs 100-crore considering the booming property market in the city and some deals in the recent past, especially the sale of an 18-acre plot located in Marol by Borosil for Rs 870-crore. "There are some disadvantages as the property is close to the Mithi river in an industrial area which may impact the price. But it also has positives like proximity to airport which can help," property consultant JLLM's Joint Managing Director for Capital Markets Shobhit Agarwal told PTI here. According to the tender document posted by GT, a minimum of 1-lakh square feet of space can be constructed on the land. The company slipped into the red in the June quarter, registering a net loss of Rs 25.02-crore from a profit of Rs 3-lakh in the corresponding period last year. Its total income had also declined to Rs 23.38-crore from Rs 33.73-crore. Enditem