source :3 DEC, 2011, 09.50AM IST, RAJSHRI MEHTA,TNN
MUMBAI: With the construction industry reeling from an oversupply of office space, an entire commercial building has now been sold to a school. The 30-year-old American School of Bombay (ASB) has bought 1.4 lakh square feet of space in the 36-acre Kohinoor City, Vidyavihar, in a deal amounting to more than Rs 125 crore.
The six-storey building, which has been entirely bought by the ASB, was earlier planned as a commercial building. The 36-acre mixed township in Vidyavihar is promoted by Unmesh Joshi, son of Shiv Sena leader Manohar Joshi.
The newly bought premises are expected to accommodate almost 800 students and admissions are expected to begin in 2012. The ASB currently operates from an 85,000-square-foot state-of-the-art complex in the Bandra-Kurla Complex (BKC).
Joshi confirmed the deal, saying the school's presence would boost the Kohinoor City project. "We have our own school, a hotel and other commercial and residential buildings. The ASB liked being located in a project that has all social facilities,'' said Joshi. CBRE, the global property consultants who brokered the deal, refused to comment. ASB coordinator Craig Johnson was unavailable for comment as he was travelling.
Property experts said the deal is a reasonable one, being struck for approximately over Rs 8,000 per sq ft. "Considering the stagnancy in the property market, and especially in the Kurla-Vidyavihar region, where office rentals are low at about Rs 80 to Rs 100 per sq ft, and the huge availability of space, any deal is welcome,'' said an expert.
Two years ago, notwithstanding the economic slump, Kohinoor City witnessed one of the biggest property deals in the city when the National Stock Exchange (NSE) bought 80,000 sq ft of office space for Rs 120 crore. The NSE is expected to use the Kurla property for its operations, as its main office in BKC is not adequate for its operational requirements
The six-storey building, which has been entirely bought by the ASB, was earlier planned as a commercial building. The 36-acre mixed township in Vidyavihar is promoted by Unmesh Joshi, son of Shiv Sena leader Manohar Joshi.
The newly bought premises are expected to accommodate almost 800 students and admissions are expected to begin in 2012. The ASB currently operates from an 85,000-square-foot state-of-the-art complex in the Bandra-Kurla Complex (BKC).
Joshi confirmed the deal, saying the school's presence would boost the Kohinoor City project. "We have our own school, a hotel and other commercial and residential buildings. The ASB liked being located in a project that has all social facilities,'' said Joshi. CBRE, the global property consultants who brokered the deal, refused to comment. ASB coordinator Craig Johnson was unavailable for comment as he was travelling.
Property experts said the deal is a reasonable one, being struck for approximately over Rs 8,000 per sq ft. "Considering the stagnancy in the property market, and especially in the Kurla-Vidyavihar region, where office rentals are low at about Rs 80 to Rs 100 per sq ft, and the huge availability of space, any deal is welcome,'' said an expert.
Two years ago, notwithstanding the economic slump, Kohinoor City witnessed one of the biggest property deals in the city when the National Stock Exchange (NSE) bought 80,000 sq ft of office space for Rs 120 crore. The NSE is expected to use the Kurla property for its operations, as its main office in BKC is not adequate for its operational requirements
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