In Short:
K Raheja Corp Real Estate bought the land and buildings of Crossroad Condominium in Mumbai from Kishore Biyani’s company for ₹476 crore as part of a debt resolution plan. The mall, previously known as Sobo Central Mall, faced financial difficulties due to the pandemic and owed over ₹700 crore to lenders. Biyani offered a settlement to lenders after an auction by Canara Bank.
Exciting News: K Raheja Corp Real Estate Acquires Crossroad Condominium in Mumbai!
Guess what, folks? K Raheja Corp Real Estate has made a bold move by acquiring the land and buildings of Crossroad Condominium in Mumbai’s Haji Ali area. This area was previously home to the iconic Sobo Central Mall, owned by the renowned Kishore Biyani company.
How much did they pay for this prime piece of real estate, you ask? A whopping ₹476 crore! This acquisition is part of a debt resolution plan for non-performing assets, and it’s surely making waves in the real estate world.
The Deal Details
According to documents from Propstack, the mall was sold by Bansi Mall Management Company, owned by the Kishore Biyani promoted firm, to K Raheja Corp earlier this week. The plot area spans 5,357 sq m, with a built-up area of 11,453 sq m, including common areas and facilities.
So, what’s the catch? Well, Kishore Biyani reportedly offered this amount to lenders as a one-time settlement. The mall owner owed a hefty sum of over ₹700 crore to lenders, led by Canara Bank. As part of the settlement, lenders had to take a haircut on the amount owed.
The Backstory
Crossroads, later known as ‘Sobo Mall,’ was a pioneer in the Mumbai mall scene. However, with the rise of newer, larger malls in the suburbs and the challenges posed by the Covid pandemic, the mall struggled to stay afloat. Parking issues in the congested area didn’t help its case either.
In January, Canara Bank decided to auction the mall in a bid to recover dues, with a reserve price of ₹500 crore. The Runwal Group made a bid of ₹475 crore, which was accepted by lenders. But hold on, Biyani had other plans. He made a move by approaching the Debt Recovery Tribunal, challenging the bid and offering to settle the amount.
And now, with K Raheja Corp stepping in and sealing the deal, the future of this prime property in Mumbai is definitely looking bright. Let’s see what exciting developments unfold in the days to come!
