Prestige Constructions buy 8 acre land in Koramangala Bangalore

Published on July 8th, 2014 by Abilash Reddy
How to get the best deal in buying a house Bangalore
Engineering and electronics conglomerate Siemens has sold an 8-acre prime plot in south Bangalore to builder Prestige Estates for Rs 345 crore. The Bangalore-based builder entered into an agreement with Siemens on Thursday and has already paid an advance and registered the property on Koramangala Road, a residential hub for the city's IT professionals. An official announcement is expected later this week.

pixel
The transaction was handled by Juggy Marwah, managing director south India for JLL India, a real estate consultancy firm. Marwah declined to comment. The entire sale procedure for the property, which has been in the market since 2011, lasted six months, said one person in the know. Siemens had earlier entered into an agreement with another Bangalore builder, RMZ Corp, to sell the same land parcel in 2011, but the deal fell through. RMZ had paid an initial instalment of Rs 32 crore to Siemens for this land parcel. According to sources, Siemens has returned 50% of the money to RMZ against the property.

The 8-acre land parcel came under Siemens' control after a merger of Siemens VDO Automotive's business with the equipment manufacturer in 2005. Earlier, the land used to house a factory of Siemens VDO Automotive. Koramangala Road is one of the key localities in south Bangalore, largely known for its residential commercial development. Real estate projects here fetch around Rs 9,000 to Rs 15,000 per sq ft depending on the facilities offered by builders.

Siemens have been planning to sell land parcel across major cities like Mumbai, Bangalore and Pune as part of its value optimization strategy. Prestige Estates Projects has 59.47 million sq. ft of projects under development across residential, commercial, hospitality and retail. The South-based builder plans to launch 31.96 million sq ft this fiscal with 76% of it to be residential projects followed by commercial and retail. The builder has 377-acre of land bank across South.