Land prices in Pimpri-Chinchwad may not match the rates prevailing in Mumbai or Pune. But at an auction that may signal a shift in the real-estate market there, a 10-acre plot where the defunct Hindustan Antibiotics Limited (HAL) stands has been sold for an astounding Rs49 crore.
HAL was the first public-sector pharmaceutical firm. Commissioned in 1955-’56, the Pimpri plant manufactured bulk drugs, mainly penicillin, streptomycin, and a number of other formulations.
Considering that land costs in this industrial town range between Rs6,000 and Rs8,000 per square metre, the cost of Rs12,051 per sq m paid by the Ellora Group from Navi Mumbai has set the realty market abuzz. This is the third time the factory was put on the block.
Though the factory is located strategically in the heart of Pimpri, real-estate analysts believe the price paid by the developer is too high. “The price does not make sense as it will not boost any major industries despite its proximity to Pune, which has been developed as an information technology and automobile hub,” an analyst said. “Further, there is a large supply of residential developments at significant incentives readily available in Pune. Why would anyone want to live so far away?’’
But Ellora Group director Vijay Gajra said, “The government is developing Pimpri as an extension to Pune on the same lines it developed Navi Mumbai to Mumbai city. Land rates here are more reasonable than in Pune. Being the only large piece of clear land in the area, I can develop a residential complex here with good amenities.’’
HAL company secretary AS Vaidya said, “We are not allowed to disclose anything to the press. But the bid took place on Tuesday according to the tender process.” Compared to existing flat rates of Rs2,500-Rs2,700 per sq ft, Gajra intends to sell flats at Rs3,000 a sq ft. The developer will get a developable space of six lakh square feet.
Three years ago, Gajra had acquired a three-acre plot to set up a multiplex and mall on Spine Road, at the junction of the Mumbai-Pune highway and Nashik-Pune highway. The recession brought the project to a halt.
At Lonavala, Gajra has tied up with Tata Housing to construct villas and premium apartments on a twenty-acre plot opposite the famous Fariyas resort.
(With inputs from Archana Dahiwal in Pimpri)
