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RK Studios has a new owner in Godrej Properties, deal value likely to be around Rs 190 crore

The real estate development arm of Godrej Group is buying the 2.2-acre land parcel in Chembur, said three persons with direct knowledge of the development.

, ET Bureau|
Oct 27, 2018, 09.49 AM IST
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Agencies
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The property is currently owned jointly by Raj Kapoor’s sons — Randhir Kapoor, Rishi Kapoor, and Rajiv Kapoor — and daughters Ritu Nanda and Reema Jain.
The iconic RK Films & Studios, where genre-defining Hindi films such as Awaara, Shri 420, and Mera Naam Joker were made, is set to get a new owner in Godrej Properties.

The real estate development arm of Godrej Group is buying the 2.2-acre land parcel in Chembur, said three persons with direct knowledge of the development.

“The developer has already paid the token advance for the proposed transaction valued between Rs 170 crore and Rs 190 crore. The deal is expected to be registered after Diwali,” said one of the persons mentioned above.

The studio was built about 70 years ago by Raj Kapoor, who was often called the Greatest Showman of Indian Cinema. The iconic maroon logo, set against off-white perimeter walls, defines the unassuming entrance to the famed studio in Chembur, then a distant, sleepy and outlying suburb in India’s film and business capital.

Last fall, a major fire tore through the studio, gutting decades of film memorabilia.

Godrej Properties is currently undertaking due-diligence for the land parcel’s transaction. Both the parties are expected to conclude and register the transaction over the next few weeks.

Krishna Raj Kapoor, wife of Raj Kapoor, passed away earlier this month at the age of 87. The property is currently owned jointly by Raj Kapoor’s sons — Randhir Kapoor, Rishi Kapoor, and Rajiv Kapoor — and daughters Ritu Nanda and Reema Jain.

No More Economical to Run It: Kapoors
According to media reports, the Kapoor family, owners of the studio, decided to sell off the iconic property as they believed it is no longer practical and economical to keep it running.

It had become an unviable proposition given that the studio was situated in a busy eastern suburb, and this location was no longer sought after by filmmakers. Facilities in Mumbai’s western suburbs of Andheri and Goregaon's Film City have been preferred by filmmakers over the past couple of decades.

Both Rishi Kapoor and Godrej Properties declined to comment.

While the studio is spread over 2.2 acres, or 9,018.85 sq meter of land parcel, around 131.89 sq meter was affected by road offset and handed over to the Municipal Corporation of Greater Mumbai.

According to the persons cited above, Godrej Properties is planning to develop a mid-income residential project on this plot.

After a long gap, land transactions have started to gain momentum in the Mumbai Metropolitan Region, the country’s most expensive property market.

Over the last few years, outright land transactions were overtaken by joint developments and joint ventures as those would involve lower capital involvement for the developer, and a possible revenue upside to the landlord once the projects were ready.

Last week, realty developer Kanakia Group acquired a 15-acre prime land parcel in the Powai suburb of Mumbai for around Rs 850 crore from Skyline Mansions and a private equity fund promoted by Anand Jain.

In May, Kalpataru emerged as the highest bidder for an eightacre land parcel of Mondelez India, former Cadbury India, on Thane’s Pokharan Road with its bid price of Rs 282 crore

Also Read

Godrej Properties concludes acquisition of RK Studios' land

Kapoor family ready to sell iconic RK Studio

Legacy of RK Studios is not limited to the land; Kareena says Kapoors have taken it ahead through their work

IFTDA requests new owner Godrej Properties to make 'Raj Kapoor museum' at recently acquired RK Studios

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