Rajesh Exports buys property on MG Road for Rs 82 crore
It’s official. The landmark Brindavan Hotel on
Mahatma Gandhi Road has been sold to Rajesh Exports for Rs 82 crore
approximately, excluding the registration fee.
Constructed in the 1960s, the hotel land admeasuring 46,000 sqft was acquired by the Rao family for just over Rs 25,000. The hotel will officially close down in the next couple of days.
After serving delicious delicacies, apart from providing lodging to travellers over the past four decades, the iconic hotel is now making way for a palatial private property.
The market value of the property has been placed at close to over Rs 130-Rs 140 crore, but it has been sold at a lesser price because of its narrow approach road, claim realty experts.
Industry sources say that while the property may be in a prime location, most investors, including Vijay Mallya, had backed out of the deal due to its very minimal floor space ratio (FSR).
However, Rajesh Mehta, an elated chief managing director (CMD) of Rajesh Exports and owner of Shubh Jewellers, said the FSR did not matter to him and his family. “We are looking for a quiet private residence in the heart of the City. The FSR does not matter to us,” he said.
The Mehta family will utilise the space to build a “small and cosy” house for themselves, sources said. “The Mehta family struck the deal just about 10 days ago and are expected to build a villa for themselves and their relatives in the massive space,” said an employee of Brindavan. The Mehtas are likely to take possession of the land in the next three months.
Meanwhile, 100-odd employees would lose their livelihood with the closure of the hotel. “We have been working in the hotel for over 25 years. Serving people is the only thing we know. Now, with the hotel sold, we will be on the streets,” said a waiter. Bell boys, cooks, cleaners and room service staff will now have to look for other employment opportunities.
The employees, most of them from Udupi and Mangalore, were told nearly eight months ago about the hotel’s closure. While the hotel management has settled the payments of most employees, those in the restaurant have been asked to wait till January 16.
Constructed in the 1960s, the hotel land admeasuring 46,000 sqft was acquired by the Rao family for just over Rs 25,000. The hotel will officially close down in the next couple of days.
After serving delicious delicacies, apart from providing lodging to travellers over the past four decades, the iconic hotel is now making way for a palatial private property.
The market value of the property has been placed at close to over Rs 130-Rs 140 crore, but it has been sold at a lesser price because of its narrow approach road, claim realty experts.
Industry sources say that while the property may be in a prime location, most investors, including Vijay Mallya, had backed out of the deal due to its very minimal floor space ratio (FSR).
However, Rajesh Mehta, an elated chief managing director (CMD) of Rajesh Exports and owner of Shubh Jewellers, said the FSR did not matter to him and his family. “We are looking for a quiet private residence in the heart of the City. The FSR does not matter to us,” he said.
The Mehta family will utilise the space to build a “small and cosy” house for themselves, sources said. “The Mehta family struck the deal just about 10 days ago and are expected to build a villa for themselves and their relatives in the massive space,” said an employee of Brindavan. The Mehtas are likely to take possession of the land in the next three months.
Meanwhile, 100-odd employees would lose their livelihood with the closure of the hotel. “We have been working in the hotel for over 25 years. Serving people is the only thing we know. Now, with the hotel sold, we will be on the streets,” said a waiter. Bell boys, cooks, cleaners and room service staff will now have to look for other employment opportunities.
The employees, most of them from Udupi and Mangalore, were told nearly eight months ago about the hotel’s closure. While the hotel management has settled the payments of most employees, those in the restaurant have been asked to wait till January 16.
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