Indiareit Fund is acquiring a majority stake in SoBo Central - erstwhile Crossroads Mall, in Central Mumbai from Future Group for about Rs 600 Cr.

Future Group had bought Crosswords in 2006 for Rs 350 Cr from Ashok Piramal Group, which launched India's first full fledged shopping mall in 1999. With a plan to transform it into a high-end lifestyle mall, Crossroads was shut down for almost two years and opened in 2009 as SoBo Central.

Now, the ownership is set to change once again. Ajay Piramal Group plans to convert it into a high-end hotel-cum service apartments in the next three years.

Transaction Reference: ET

Indiareit will apply for higher FSI for the same. However, getting higher FSI could be difficult for the Piramals as SoBo falls under the Coastal Regulatory Zone and the FSI in CRZ is restricted to 1.33. The current FSI of SoBo is 1.33.

Indiareit Fund Advisors manages four funds for investments in Indian real estate sector. It is promoted by the Piramal Group. The funds have invested in several real estate projects all across the country.

In May, Piramal group sold the domestic formulations business of Piramal Healthcare to the US-based Abbott Laboratories for a down payment of $2.12 Bn and annual installments over four years taking the total deal size to $3.72 Bn.

It is also selling its diagnostic business - Piramal Diagnostic Services Pvt. Ltd. to Super Religare Laboratories for Rs 600 Cr.

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