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Siemens sells 8-acre plot to RMZ for 380 Crore

Kailash Babar, Mumbai, The Economic Times

February 05, 2011


Electrical equipment major Siemens has sold its 8-acre parcel in Bangalore for 380 crore to realty developer RMZ Corporation. Earlier this week, the Bangalore-based realtor entered into an agreement with Siemens for this and has already paid an advance for the plot. RMZ Corporation MD Raj Menda confirmed that the deal has been finalized and the balance amount of the consideration would be paid by March 31. The developer's total cost for the land parcel including registration will move to 410 crore, he said. Siemens spokesperson declined to comment on the story saying that the officials concerned to this are not in the country.

ET was first to report that Siemens has put this land parcel on block and RMZ is the top contender to bag the plot with its around Rs 400 crore. Siemens in an email response to ET on January 24 had confirmed that the process to sell the land parcel was on, adding that it is part of a regular process wherein the company optimises its real estate portfolio from time to time.

RMZ emerged as the highest bidder out of total five short-listed candidates including Nitesh Estates, Hiranandani Upscale, a realty fund, and an auto component company. The land parcel situated at Koramangala Road was marketed and Siemens is handling the deal directly without involving any realty consultancy firm. The bidding process for the land was concluded on January 7 after almost six month's exercise.

RMZ is planning a residential development on this plot in two phases over the next five years.