Parsi Trust sells Bandra sea-facing property at Rs 350 cr

The Bandra Parsi Convalescent Home Trust sold its sea-facing property at Bandra Bandstand for Rs 350 crore. In October, Imperial Infra, a Boman Irani-led Rustomjee Group, concluded the sale agreement with the Parsi trust for the 1-acre area of the plot near Taj Land's End Hotel.

The Parsi trust has received Rs 234 crore from the sale agreement going to the suburban collector as a collector's fee. The trust will get back 12,000 sq ft for free after the builder redevelops the land. Rustomjee Group is planning to develop a luxury residential tower there.

The sale agreement was registered a few days back and paid Rs 17 crore as stamp duty.

The trust had floated tender in 2019, but it took two years to finalise due to the Covid-19 lockdowns. Two bidders were selected, including Rustomjee Group and Runwal Developers, who offered over Rs 100 crore.

The property deal makes the Bandra Parsi Trust richer than the Bombay Parsi Panchayat (BPP) in terms of the corpus. Though the BPP controls land and buildings of higher costs, its corpus is nearly Rs 117 crore.

The plot contains a dilapidated early 20th-century bungalow, which was earlier used as a convalescence home to poor women and children of the Parsi community.

The plot trustees said that the annual interest earned from the money would be used for Parsi Irani charity work. It provides medical aid, education funds and amelioration of poverty.

The decision of selling the Bandra property was also due to the high ground rent, which was increased from Rs 4,600 to Rs 16 lakh within one year, and it was unaffordable for the trust.

According to the sources, the property was open for construction and redevelopment with the Coastal Regulation Zone (CRZ). The developers will get more floor space index (FSI) to develop the plot near the coast. Earlier, the CRZ allowed construction of only up to 500 metres from the high tide line.

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