* Mumbai Textile Mills, 17 acres
* Kohinoor Mills, 4.5 acres

Three years ago, five National Textile Corporation mill land deals were the springboards that catapulted Mumbai’s realty prices to stratospheric levels. Today most of them are in choppy waters.

The developers who had once bid aggressively for the land deals are now struggling to either complete their projects or find lessees in the completed ones.

Take for instance the 11-acre Jupiter Mills and the eight-acre Elphinstone Mill at Lower Parel, bought by India Bulls at Rs 276 crore and Rs 441 crore.

India Bulls director Gagan Banga says work at both plots is going on at normal pace, that 1.1 million sq ft of the 1.5 million sq ft in the near-complete project at Jupiter Mills has already been leased out. “Our lessees include Reliance, Aditya Birla Group, NDTV, Edelweiss and IDFC,” said Banga.

However, according to information from the International Property Consultants (IPC), clients such as Reliance Mutual Funds and Aditya Birla Group, which have only signed letters of intent, are now demanding renegotiations on the lease rent. The last deal transacted was as long back as April.

Banga concedes that the rates have come down from Rs 275 per sq ft per month, but only up to Rs 225-250. IPC, however, says that even at Rs 195, there are no takers today.

As for Elphinstone Mills, on-site company officials confirmed that work on one of the buildings has been halted completely.

Bang opposite is the Mumbai Textile Mills. Bought over by DLF at Rs 704 crore, the 17-acre plot stands testimony to the country’s costliest land deal till then. Since its moment of glory, the changing market dynamics has forced the Delhi-based realty player to go back to the drawing board more than once. Plans for a business hotel, mall and multiplex were modified to make way for an IT park. For more than a year now, the massive cranes on site have been at rest and work has not proceeded beyond the basement. Despite repeated calls and e-mails, there was no response from the DLF spokesperson.

... contd.