K Raheja Corp plans to transform SOBO Central Mall into upscale residential units. Situated across 1.3 acres in the prestigious Haji Ali area, the mall will give rise to a towering sea-facing structure spanning approximately 50 stories, boasting a potential development area of nearly 250,000 square feet.
According to individuals familiar with the project, real estate developer K Raheja Corp is planning to transform SOBO Central Mall, the nation's inaugural mall, into an exclusive luxury residential complex.
Formerly recognized as Crossroads, the mall was established in the late 1990s in the southern region of Mumbai.
Situated across 1.3 acres in the prime Haji Ali neighborhood, the mall is anticipated to pave the way for an approximately 50-story structure offering views of the sea, with a development potential of nearly 250,000 square feet. Given the current property prices in the area, the project is projected to generate revenue exceeding Rs 2,000 crore.
"The developer is in the process of drafting plans for the proposed redevelopment and is expected to finalize the entire plan soon," stated one of the individuals mentioned earlier. The developer recently purchased the property for Rs 476 crore from its previous owner, Kishore Biyani's Bansi Mall Management Company. The property was put up for sale by creditors led by Canara Bank to recover their dues, and they had already received a bid of Rs 475 crore for the property.
However, Biyani offered to settle the dues at Rs 476 crore, which was accepted by the lenders. K Raheja Corp has acquired Biyani's stake in the mall, including 150,000 square feet of leasable space, and Biyani has used the proceeds to settle the creditors of Bansi Mall Management Company.
Property consultants note that this plot stands out as one of the larger available parcels in the vicinity of Carmichael Road, Pedder Road, and Altamount Road, famously dubbed India’s Billionaires’ Row. Most other plots nearby are comparatively smaller and are earmarked for housing society redevelopment projects.
Recently, K Raheja Corp has inked an agreement to collaboratively develop a 2.5-acre land parcel in Mumbai’s Worli area into a luxury residential project, boasting a revenue potential exceeding Rs 2,000 crore.
The developer's residential division and the property owner have reached an agreement on a revenue-sharing structure for the joint development. Under this arrangement, K Raheja Corp will receive a 57% share of the revenue, while the remaining 43% will be allocated to the landlord.
Over the last couple of years, the luxury housing market in India has experienced a significant uptick in demand and sales activity, particularly in the top eight cities across the nation. Mumbai, the country’s financial hub, has led this trend, with a majority of such transactions occurring in the upscale neighborhoods of south Mumbai and Worli-Prabhadevi.
Source: Economic Times
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