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Peninsula To Convert Dawn Mills Into IT Park

Peninsula Land, the real estate arm of the diversified Ashok Piramal group, has decided to convert Dawn Mills ? its defunct textile firm at Lower Parel ? into an IT park. Peninsula had acquired the mill from the Ruia group in 2005.

The real estate developer has applied for approvals from the Maharashtra government to change the land use of Dawn Mills. The mill is sprawled over 5 lakh sq.ft near Peninsula Park at Lower Parel.

Confirming the development, Peninsula Land managing director Rajeev Piramal said: ?We are developing an IT park in Dawn Mills. We are in the process of getting approvals from the government.? Peninsula Land is in the process of merging Dawn Mills Company with itself. The merger is aimed at consolidating the group?s real estate businesses under a single entity.

On Tuesday, shares of Peninsula Land were up by 3.4 percent to close at Rs 509.80 on the Bombay Stock Exchange.

The Maharashtra government has recently allocated additional floor space index (FSI) to IT parks in Mumbai, which can be used as commercial property. The resolution enables builders to make a much more profitable use of 100 percent extra FSI granted to them for IT/ITeS parks. A part of this, extra FSI can be used by builders for establishment to provide financial services such as banks, insurance companies, securities and mutual funds.

The policy will allow Peninsula Land to double its FSI and saleable area to 1.2 million square feet. The company expects a revenue of Rs 2,700 crore over the next three years at a development cost of Rs 500 crore, investment banking firm Enam Securities said recently in its latest report on Peninsula Land. Source : The Economic Times , Nevin John & Rajesh Unnikrishnan, Mumbai << Back