Mahindra & Mahindra Sells Kandivali Land for INR 210 Crore to Pune-based Rucha Group

Mumbai:

Mahindra & Mahindra (M&M) has successfully sold a significant 20.5-acre land parcel in Kandivali East, Mumbai, for ₹210 crore to Pune-based Rucha Group's real estate arm, Blueprintify Properties. This transaction, concluded on July 23 and registered the following day, highlights a strategic move by M&M to capitalize on its non-strategic assets.

Below Market Value Sale

Despite the plot's ready reckoner value being ₹223.58 crore, M&M sold it for a lower amount, adhering to strategic business decisions. This land, situated in a ‘no development zone,’ is bordered by the Sanjay Gandhi National Park to the east and south, providing a serene environment.

Transaction Details and Stamp Duty

The sale, which incurred a stamp duty of over ₹13.41 crore, was processed according to Maharashtra's stamp duty regulations. The stamp duty was calculated based on the ready reckoner rate rather than the transaction price, as the property was sold below its government-set valuation.

Strategic Asset Management

Mahindra Lifespaces, M&M’s real estate development arm, is currently working on a nearby project but considered this particular plot as non-strategic. This strategic asset management decision aligns with M&M's broader business objectives.

Future Prospects for Land Monetisation

While M&M has no immediate plans to sell other land assets, the company remains open to monetizing its real estate holdings depending on future market conditions and strategic needs.

Clear and Unencumbered Property

Importantly, the Kandivali land parcel is vacant and free from any unauthorized or illegal constructions, ensuring a smooth transaction and clear title for the buyers.By leveraging its non-core assets, Mahindra & Mahindra demonstrates a proactive approach to asset management, paving the way for future strategic opportunities in the real estate market.