Mumbai: Raymond Ltd is selling a 20-acre land parcel in Mumbai's Thane area to Xander-backed Virtuous Retail South Asia (VRSA) for ₹700 crore as part of the textile firm's ongoing asset monetization plan.
In a filing to the BSE, Raymond said its associate firm JK lnvesto Trade (India) Ltd (JKIT) has entered into an agreement to sell the Thane land to Elpis Ventures Ltd, an affiliate of VRSA for ₹700 crore.
VRSA is the retail development and investment arm of private equity firm Xander Group.
Located at Raymond Junction adjoining the Singhania School, the land deal will bring significant commercial development in Thane, the company said. "The sale of JKIT land parcel is a major step towards our strategy of asset monetization and value creation for our shareholders," said Gautam Hari Singhania, chairman and managing director Raymond Ltd, in the exchange filing.
He said this land deal is a large foreign direct investment in terms of real estate in Thane that would bring in the much required commercial and retail development in the area. "It will lead to multiple job creation sustainable long term employment opportunities, " he added.
In March this year, the company had announced entering into the real estate development business with the launch of a residential project within the vicinity.
Raymond owns 125 acres of land in Thane and has been looking at ways to monetise the asset by conducting an outright sale or developing it in a phased manner. "Given the fact that our residential project, 'Raymond Realty' is underway, this development will ensure a vibrant real estate eco-system within its vicinity offering home buyers a better choice," Singhania said.
As part of its first housing project, Raymond Realty is building 3,000 mid-income housing units in 10 42-storey towers spread over 14 acres. In the second phase it plans to build premium houses over six acres land parcel.
"Prime land parcels of this size seldomly trade, especially in major metropolitan markets like Mumbai. We have been waiting patiently for the ideal opportunity to expand our award-winning portfolio into the Mumbai region and are delighted to embark on the development of aVR flagship center in the city as part of a larger master-planned development promoted by a like-minded partner like Raymond, " Sid Yog, founder and chairman of the board, VRSA, said.