MUMBAI: Mahindra Lifescape may buy over the three-storey Nepean Sea Road bungalow in which Anand Mahindra, VC and MD of Mahindra Group resides as a tenant along with his family.

The Mahindra family's tenancy dated back to the times of Mahindra's grandfather KC Mahindra. The deal is believed to be worth close to Rs 270 crore. Located close to Priyadarshini Park, Gulistan is spread across 15,000 sq ft. Mahindra Lifescape, the real estate wing of the Mahindra Group, has signed a preliminary agreement with Orbit Corporation and Rishi Gagan Trust, whose beneficiary is businessman Om Navani, who are the two owners of the bungalow. Navani had bought the bungalow from an earlier owner in the early 1980s while Orbit acquired the property in 2008.

Arun Nanda, chairman of Mahindra Lifescape told ToI that they are in the process of carrying out due diligence of the property. "We are currently in the process of talking to lawyers and six tenants including Bank of Maharashtra on their settlement terms for tenancy rights. We have agreed to take over some liability. The sale price is much lower than the quoted deal price of Rs 270 crore,'' said Nanda. The company has made an advance payment of Rs 11 crore.

According to Nanda, the company would execute the redevelopment plan itself once the transaction was completed. "It's a deal between the two real estate companies and does not involve the group's vice-chairman. Its too preliminary for me to say how many floors I will construct as I am yet to finalise the design,'' said Nanda.

Real estate sources said that once the deal is signed, the Mahindras would continue to be a tenant, paying rent to Lifespace. Mahindra would be compensated with an equivalent space in the new building when redevelopment was undertaken.

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