Greaves Cotton announced in a filing in stock exchanges on Thursday said they have inked a memorandum of understanding (MoU) with the Pune-based realtor, Runal Developers. It said the value of the sale would be paid by Runal Developers in three tranches, with the entire sale to be closed by the end of the current financial year.
Runal Developers confirmed the transaction to TOI, but refused to elaborate further. Sources close to the deal, however, said it had been in the works for a few months. The decision to sell the land was arrived at the board meeting held on Wednesday.
“Yes, Greaves Cotton has announced the MoU to the stock exchanges. We have not yet decided on how we shall develop the land, whether it will be used for housing projects or commercial development. We will take a call on that after the deal is complete. We chose the land because of its various potentials, including its location,” said a spokesperson from Runal Developers.
Greaves Cotton, besides its Akurdi plant, has manufacturing facilities in Aurangabad in Maharashtra, and elsewhere. The sale was one of the largest in recent times due to its value, real estate watchers said. Industry observers added that other companies too have sold excess land in recent years, especially along the old Pune-Mumbai highway stretch.
Realtors also sounded optimism about the deal. “We have been saying that Pimpri Chinchwad has all the ingredients of developing its own city structure, especially on the stretch on the old highway, with the 60 feet wide road, underpasses, BRT, and now the Metro as well. There is very good potential for offices as well as for housing on that stretch, as well as for retail. The area along the highway is slowly developing into a commercial hub, with good access from Pune. The rate of this transaction, which has been in discussion for a while, reflects that the market is opening up and there is huge demand for housing and offices, despite the pandemic going on,” said Vineet Goyal, the managing director of the Kohinoor Group.
An industry observer in the region said the old highway stretch through Pimpri Chinchwad is one of the most attractive propositions for developers now, as the Pune Metro corridor is coming up in that stretch.