Tata Housing shuts door on Lincoln House property in SoBo
US Consulate’s Lincoln House property
Two years back in March 2012, Mumbai’s realty circles were abuzz with news of Tata Housing, Tata Group’s realty company bagging the US Consulate’s Lincoln House property in South Mumbai for a cool Rs 850 crore. Almost three years on, a stroll past it reveals no sign of the Tata involvement, just a sole security guard, wearing a US Mission-logoed uniform manning the post.
Lincoln House, a heritage structure, underwent a grade change which worked as the spanner in the deal wheel. “Lincoln House hasn’t gone anywhere. We are not involved with the deal anymore,” says Brotin Banerjee, MD & CEO, Tata Housing said.
In July 2012, Municipal Corporation of Greater Mumbai, on basis of the Mumbai Heritage Conservation Committee’s recommendations, published a revised list of heritage structures. As per this list, the heritage status of Lincoln House was upped from grade III to II-B. While redevelopment of heritage structures with grade III is permissible, there are several restrictions in place for change especially external, to structures with grade II-B. “The development potential reduced. We are hoping for changes in the Coastal Regulation Zone rules,” says a source involved with the transaction.
Tata Housing had not signed any documents to close the deal or pay the US Consulate any sum. They were the highest bidders and had only paid the earnest money deposit, put down by every bidder. The amount has since been repaid, says the source.
Banerjee says there’s a possibility of a future involvement in the property. “Mumbai Metropolitan Region and Delhi NCR are our two biggest markets. If I can get better projects for Tata Housing in , I’d be keen to do it. I wouldn’t say I am not interested.” Here is a catch. Banerjee feels that he must be capital ready and the project investment ready for a deal to come through. No point waiting for “500 years for it (investment) to show (results)”. He says, “No point investing Rs 700-800 crore and then the development potential, which you thought was a million square feet, comes down to X. It doesn’t make sense.” As for Lincoln House, it continues to be in limbo, he told a newspaper.
