Raheja to develop 6 million sqft for Rs. 2000 crore in Navi Mumbai

Buoyant with the increasing demand of affordable commercial office spaces, the K. Raheja Group which already runs three IT parks under the brand Mindspace, is planning to invest an estimated Rs.2,000 crore in acquiring land and developing 6 million sq. ft of commercial space in the next two-and-a-half years in Navi Mumbai.

Vinod Rohira, managing director and chief executive officer (commercial real estate and REIT), K Raheja Corp, said the company is looking to expand its commercial business within the Navi Mumbai region. This includes a fourth IT park, which it is looking to start building in the next six-to-nine months.

The fourth IT park which has 6 million sq ft of developable area, is being built on a 30-acre land parcel at Ghansoli, which the Raheja Group purchased from US-based specialty chemicals company Cabot Corporation for Rs.210 crore last year.

“All four business parks are ongoing projects that offer the potential to develop over 20 million sq. ft of commercial real estate in the next six to seven years, of which six million sq. ft will be ready within the next three years,” Rohira said.

“With commercial developments in Navi Mumbai, we want to bring in volumes by making the market supply-driven. Our aim is to create quality offerings at economical rates,” Rohira added. At present, Raheja Group leases its commercial office space for Rs.50 per sq. ft. which is one of the lowest in Mumbai where rentals range between Rs.250 and Rs.350 per sq. ft in upcoming financial hubs like the Bandra Kurla Complex (BKC).

K. Raheja Group

K Raheja Corp, one of the largest developers of business parks in the country under the brand ‘Mindspace’, has bought 30 acres in the Ghansoli area of Navi Mumbai for Rs 210 crore or Rs 7 crore an acre, from US-based speciality chemicals company Cabot Corporation, according to sources.

The 30-acre plot that earlier housed a plant of Cabot will be used by the Raheja Group to build an infotech park. The plot has a total develop able space of four million sq ft and floor space index (FSI) of three million sq ft.

According to industry experts, this is one of the biggest land deals in the MMR and a good transaction for K. Raheja Corp as they already have a major presence in Navi Mumbai with Mindspace properties in Airoli and Juinagar.