Kingfisher Airlines to acquire Kohinoor Mills

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Kingfisher Airlines to acquire Kohinoor Mills

Mill land in Central Mumbai is in the news again. Kingfisher Airlines is in talks to acquire Kohinoor Mills' five-acre property in Dadar for over Rs 1,000 crore, reports CNBC-TV18.

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Mill land in Central Mumbai is in the news again. Kingfisher Airlines Kohinoor Mills in central Mumbai's Dadar area was auctioned by the National Textile Corporation for Rs 421 crore. Now, the developers, Shiv Sena-promoted Kohinoor Projects  and Matoshree Realtors , in partnership with IL&FS , are set to make a killing. Sources say Kingfisher Airlines is negotiating with IL&FS, which is a 50% stakeholder, to buy the property for corporate offices.

The deal is believed to be valued at over Rs 1,000 crore. Sources say Kohinoor Mills' developers expect to rake in Rs 27,000 per sq ft or Rs 1,500 crore. Kingfisher Airlines denied the deal. But IL&FS and Matoshree Developers said selling the property to a corporate was a consideration. They refused to mention who they are in talks with.

This site was to be developed into a retail mall. But consultants say it would not be as much of a money-spinner as a commercial complex because retailers would not pay such high values. Sources say Axis Bank was also in talks to acquire the property but the deal fell through because of high valuations. Even so, Matoshree Developers say the deal might be sealed by the end of this year.