The Bombay Dyeing and Manufacturing Company Limited (Bombay Dyeing) has sold its entire building in a private IT park at Worli measuring around 3,50,553 square feet to Axis Bank Limited (Axis) for a total consideration of Rs.790 crores ($170 million). 

The deal values the real estate project at Rs.22,400 per square feet making it one of the more lucrative deals in Mumbai. The deal that was being negotiated from January of this year closed last week. Several media reports that covered this deal had pegged the deal at Rs.16,000 per square feet valuing the property at Rs.560 crore ($124 million).

Bombay Dyeing was advised by the Mumbai based Crawford Bayley with Partner Zarine Talaty whereas Axis was advised by the Mumbai office of Khaitan & Co, whose team was led by Partners Sudip Mullick and Savita Singh.

Khaitan & Co had to deal with the contentions under the 2003 IT and ITES Policy, which provides several incentives to IT parks including stamp duty exemptions and sales tax benefits. The law firm had to also look into whether the sale of the subject property to Axis Bank Limited is in compliance with the said IT Policy.

The real estate market is slowly seeing an upward trend after a global collapse in 2008 and 2009. The Lodhas purchased a record breaking 22.5-acre plot in Wadala, Central Mumbai, for Rs. 4,053 crore ($ 900 Million) in an auction conducted by the Mumbai Metropolitan Region Development Authority (MMRDA).

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