Finlay mill land deal: Lodha to shell out Rs 710 cr

Putting an end to the predicament faced by the National Textile Corporation (NTC) in the case of Finlay mills at Parel,the highest bidder,Lodha Group,has agreed to shell out NTC’s asking price of Rs 710 crore.

Last week,the 10.5-acre mill land had received two bids,both below the NTC’s reserve price. While the Lodha Group quoted Rs 657.90 crore,Indiabulls Real Estate had quoted Rs 520 crore. NTC’s mill land in Mumbai,being amongst the dwindling prime land parcels,have always attracted aggressive bids. Any move to hand over Finlay mills land to someone bidding at below reserve price would have been first-of-its kind.

“The NTC discussed the matter with us and asked us to enhance our offer. We were convinced as their asking price is 5% above what we had quoted. We agreed to pay the amount as the project would be a prestigious one. Also,we have had a long association with NTC. We had purchased land from them,” said Lodha Group chairperson Abhishek Lodha. The company had in 2005 bought over 7.5-acre at Apollo mill in Chinchpokli for Rs 180 crore and are working on a luxury residential project there. At the Finlay mills plot,the group plans to have a use-cum-residential complex.