D-Mart Owner Damani buys 5 floors at Nariman Point
Owner of retail chain D-Mart, Mr. Radhakishan Damani has bought an area of 37000 sq. ft. that covers 5 floors of a building for Rs.134.25 crore at the rate of Rs.36000 per sq. ft., the current market rate for office spaces in Nariman Point.
Nariman Point is one of India’s premiere business buildings being ranked thirty second in the list of Top 50 Costliest Global Markets. Damani is already reputed to be an astute investor and at present has his office at the Dalamal Estate at Nariman Point itself.
Transactions:
- The estimated cost of the transaction is known to be worth Rs.134.25 crore and took place between Damani’s Bright Star Investments and Sanofi, an Indian branch of the French Multinational company.
- As per the amount stated, the carpet basis value for the bought area has been estimated to be Rs.36000 per sq. ft. The current market price for office spaces at Nariman Point has been calculated to be of same worth.
- A broker from this first business district states that though many corporate businesses are moving out to other business districts away from this posh business area, the market price continues to hold is average momentum.
Transaction advisors to Damani, Cushman and Wakefield declined to comment on this high valued business deal made. By the end quarter ending December 31st, Sanofi shall be handing over the office space officially with all transactions being made complete.
All floors of Nariman Point are given on lease and license basis. In early 2013, Sanofi had acquired an office space area of 150,000 sq. ft. previously owned by L&T Realty during its ongoing project in Powai, a suburban area of Mumbai. The value of transaction had been estimated to worth Rs.220 crore. In 2013, it had been valued as the largest deal in its financial year.
Estimates:
Analysts estimate the valuation for Damani’s Retail Chain, D-Mart to be over Rs.5000 crore. Revenues from the business over the years since 2006-07 has increased from Rs.260 crore to Rs.3334 crore in 2012-13 financial year and at this rate is expected to reach Rs.4500 crore by the end of this financial year.
This would make D-Mart Retail India’s third largest branded retail chain.
Source: The Economic Times
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