Aditya Birla Group chairman Kumar Mangalam Birla is set to be the next owner of Jatia House, Malabar Hill. He has emerged as the top bidder for the coveted mansion, quoting Rs 425 crore, according to two persons privy to the development.
Sources said the deal was one of the most expensive real estate transactions in Mumbai, valued at nearly
Rs 1.5 lakh per square foot.
Jatia House was put on the block by current owners Arun M Jatia and Shyam M Jatia, sons of industrialist MP Jatia, through a bidding process. International property consultant Jones Lang Lsalle (JLL) was appointed to assist with the sale of the property at least three months ago.
Shyam Jatia and JLL both declined to comment on the property deal. The official spokesperson of Aditya Birla Group too declined comment.
According to sources, while the commercial sale of the house was completed on September 4, the legal process for the sale is still on. “Jatia House”will be used by the Birla family and will not be exploited for commercial purposes,” said sources.
The 2926 square-metre Jatia House on 38 Gibbs Road, with a built-up area of at least 28,000 square feet, was bought by industrialist MP Jatia in 1971 from Meher Cawasji Vakeel. The Jatia family moved to India from Myammar in 1964 after the political coup in the country. Jatia House has Burma teak wood interiors, numerous gardens and offers a sea view. The property is owned by Chem Mach Pvt Ltd.
Pudumjee Paper Mills, the flagship company of M P Jatia Group of companies is now headed by Arun M Jatia and the family also has interests in hospitality, real estate, financing and FMCG products. The proceeds of the sale of Jatia House will be divided between Arun and Shyam Jatia, said sources.
“These are marquee properties and the price one agrees to pay for the same is not representative of the current market value prevalent in the area or even market sentiment. The decision to buy such iconic bungalows is purely based on the heritage, location and individual need of people, who treat these auctions as rare opportunities,” said Shishir Baijal, chairman and managing director of Knight Frank India, a property consultancy firm.
In 2014, Mehrangir, the landmark Bhabha House, close to Jatia House was bought by Pheroza Godrej, wife of Jamshyd Godrej and managing director and chairperson of Godrej & Boyce, for Rs 372 crore. In 2012 , Hindustan Unilever sold Gulita, a sea-facing property in Worli, to the chairman of Piramal Group, Ajay Piramal, for Rs 452.5 crore. In the same year, steel magnate, Sajjan Jindal, also acquired Maheswari Mansion in Napean Sea road for approximately Rs 500 crore.