Zydus Healthcare bought the Walia Business Park at Goregaon East, Mumbai in fourth week of March 2017 for total pay-out of INR172 crores. The said property was lying vacant since last two and half years despite receipt of occupation certificate in Oct 2014 and was mortgaged to SBI in June 2015. The 2 basements + 2 podiums + ground + 10 floors building, admeasuring 79,832 sqft in carpet area is right on the Western Express Highway, Goregaon. The purchase price on carpet area is INR 21,545 per sqft and presuming building efficiency of 63%, the purchase price on chargeable area would be INR 13,570 per sqft.
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The transaction details seem aligned with overall market figures. Presuming the asset could potentially secure rent of INR 95-105 per sqft if fully leased out, the capital values would be in range of INR 13,000-14,400 sqft at prevailing cap rates of ~8.75%. Premium grade A buildings in Goregaon command average rent in range of INR 100-130 per sqft.
In 2017, Mumbai’s commercial real estate market is witnessing increased activity in owner occupier and pre-leased segment. At least, few of the recent transactions show this…
| Asset | Buyer | Owner Occupied/Pre-Leased, Investment | Capital Values on Carpet Area |
|---|---|---|---|
| Walia Business Park | Zydus | Owner Occupied | 21,545 |
| Lighthall | Netmagic | Owner Occupied | 15,998 |
| Crescenzo | ICICI Prudential | Pre-Leased | 40,960 |
| Godrej BKC | Anamudi Real Estate | Owner Occupied | 71,304 |
| Godrej BKC | Ranchhoddas Enterprises | Investment | 62,292 |
| Inspire BKC | Individual | Investment | 45,900 |