India Real Estate Link

MUMBAI: Finolex Industries, part of the diversified Finolex group, has decided to sell off its special economic zone (SEZ) plot at Chinchwad near Pune. It is close to signing a deal with a US-based developer to sell the land for between Rs 350 -400 crore.
For close to a year, the nine hundred fifty crore rupees maker of PVC pipes and fittings had been weighing two options for the seventy eight acre plot — either to develop it as an information technology SEZ or dispose it off completely and release the value of the land.
A source close to the company said: “We were previously in talks with companies in the Middle East and the United States to jointly develop an IT SEZ there, but the management has finally decided to dispose it of.”
He said the company is very close to finalizing the details of the property and an declaration will be made within a week. He, however, did not divulge the name of the US-based developer.
When contacted, a senior company official said Finolex is still talking to companies in the US and an announcement will be made as soon as a firm decision is taken. “It is a sensitive matter and we cannot divulge the developments,” he said.
Around a year ago, Finolex Industries was talking to Tishman Speyer India Ventures, a company engaged in real estate development, for the sale of land. However, the deal had to be called off.
Tishman Speyer India Ventures is a 50:50 joint venture between Tishman Speyer Properties, USA, and ICICI Ventures.
The Finolex official had said in December that the modalities for the sale were decided and that Finolex was sure to sell the plot to Tishman Speyer India. But the developer took a very long time to take a firm stand and eventually the deal was called off.
“Finolex is talking to a different developer this time and the deal is almost finalised. It is just a matter of time,” he said.