CG House, one of the landmark buildings of Mumbai's tony Worli area, will be demolished soon as CG Power and Industrial Solutions has signed an agreement with real estate major K Raheja Corp Group to jointly develop the property.
The building is the registered office for the Chennai-headquartered Murugappa Group firm CG Power.
“The company and the developer will be entitled to 50 percent share of the leasehold right and the developed building. The statutory charges/cost will be borne by the company and the developer as agreed in the signed term sheet,” CG Power informed the bourses in a disclosure.
The project is expected to be completed over five years from the date of execution of the development agreement, subject to the receipt of necessary approvals.
CG Power declined to comment on a query by Moneycontrol seeking details of the new project.
The Past
The 12-story high-rise building at Annie Besant Road was the headquarter of Thapar family-promoted Avantha Group’s Crompton Greaves, which dated its history to pre-independence era. In 2015, the group’s consumer business was demerged to form a separate entity– Crompton Greaves Consumer Electricals Ltd– while the erstwhile Crompton Greaves Ltd was renamed as CG Power and Industrial Solutions Limited.
In 2020, Chennai-based Murugappa Group acquired CG Power and Industrial Solutions amid allegations of financial irregularities by promoter Gautam Thapar after an investigation by the company revealed that the nine wrongful transactions caused the company to lose around Rs 2,435-crore bank fraud case.
In January, the Central Bureau of Investigation (CBI) filed a charge sheet before a special court in Delhi against CG Power and Industrial Solutions and its former promoter Gautam Thapar in an alleged fraud case that affected 12 banks.
Murugappa Group said in May last year that CG Power achieved financial turnaround in its first full year of operations 2021-22 and that the group had cleared net debt of Rs 650 crore, which included the loans related to CG House.
The Present
Worli is a prominent micro market in the Central Mumbai locality of Mumbai real estate market.
The per sqft rate in the Worli micro market for residential segment is between Rs 40,000 per sqft to Rs 90,000 per sqft depending on the locality and the grade of construction.
The commercial office segment is majorly into leasing of office spaces in Worli. The per sqft rate for office leasing is between Rs 250 to Rs 400 depending on the grade of construction.
The notable residential projects in the Worli and its surrounding include that by Oberoi Realty, Macrotech Developers, K Raheja Corp etc.
Worli had also reported one of the biggest deal wherein family members of Radhakrishna Damani of D'Mart purchased as many as 28 housing units worth Rs 1,238 crore.
Meanwhile, a email query has been sent to K Raheja Corp on the announcement.
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