CG Power and K Raheja Corp Join Forces for Iconic Redevelopment in Mumbai

Mumbai

CG Power and Industrial Solutions, known as Crompton Greaves, has collaborated with realty giant K Raheja Corp to jointly redevelop its headquarters, CG House, located in the luxurious Worli area. The property, spanning over an acre and known for its involvement in power generation, transmission, distribution, and rail transportation, sits on leasehold land.

Details of the Redevelopment Agreement

The agreement, signed by both companies, grants K Raheja Corp the rights to redevelop the land by demolishing the existing structure and constructing new buildings. The scope of development, as per the agreement, will be detailed according to regulatory guidelines. This development agreement is slated to be finalized within 45 days from the term sheet's execution or within an extended period if mutually agreed upon, as disclosed in a regulatory filing by CG Power and Industrial Solutions.

Shared Ownership and Financial Responsibilities

Upon completion, CG Power and Industrial Solutions and K Raheja Corp will each own a 50% share of the leasehold rights and the newly developed building. The companies have agreed to equally shoulder the statutory charges and costs associated with the development, as outlined in the signed term sheet.

Project Timeline and Potential

The redevelopment project is anticipated to span five years from the date of the development agreement, contingent upon receiving necessary approvals. Property consultants have suggested that the company might develop a commercial tower on the plot, which boasts a total development potential of over 400,000 square feet.

K Raheja Corp's Expanding Portfolio

Earlier in January, K Raheja Corp Homes, the residential development arm of K Raheja Corp, secured an agreement to develop a luxury housing project in south Mumbai's Mahalaxmi locality. The project, encompassing a 3-acre prime land parcel, will feature two superstructure towers and cover a total area of 1 million square feet. This development is in collaboration with Modern India, which will receive a percentage of the sales revenue as consideration for the land sale. K Raheja Corp Homes will manage the design, approvals, development, and sales of this upscale project.