Yesteryear actor Jeetendra, also a promoter of Balaji Telefilms, created a splash recently selling off two family-owned pieces of prime real estate in Mumbai’s sought-after suburb of Andheri for a humungous Rs 855 crore. The 2.4 acre property, which currently houses the Balaji IT Park, and a few commercial buildings, was sold to NTT Global Data Centers.
While this deal was the talk of the town because of its size, it was not the only celebrity sell-off. Mumbai in recent months has seen a spate of high value sales by Bollywood actors and cricketers. Earlier, Amitabh Bachchan was in the news for selling a large duplex apartment in a building called ‘Atlantis’, located in the suburb of Andheri, for Rs 83 crore.
In March, actor Akshay Kumar made a splash with the sale of two residential units in a gated community called ‘Oberoi Sky City’, in the north-west suburb of Borivali, for Rs 6.6 crore. He followed it up in April with the sale of a 1,200 sq ft commercial office space in ‘One Place Lodha’ for Rs 8 crore.
Abhishek Bachchan, also a big real estate player in the Mumbai market, meanwhile, is in the process of offloading a prime duplex apartment on the 40thand 41st floor of one of the towers in Planet Godrej, in the Mahalaxmi Area of south Mumbai. Purchased from Godrej Properties (GPL) around 12years ago, Bachchan Junior has been leasing the apartment at high rentals.
Portfolio rejig
However, these sales do not herald the exit of the stars from the real estate market. They are deals to cash out of some properties when the going is good, while they rejig their portfolio. “Amitabh Bachchan’s sales are evenly matched by his shopping spree for prime land in Ayodhya,” points out Pankaj Kapoor, founder of the property tracking site LiasesForas.
Bachchan has been a steady buyer of land before and after the launch of the Ram Mandir in Ayodhya as he perhaps sees considerable appreciation in the holy city’s new found status. About 4 weeks ago, Bachchan acquireda prime 25,000 sq ft plot from the Abhinandan Lodha group adjacent to its ‘Sarayu’ project, for a reported price of Rs 40 crore. He had earlier acquired a 10,000 sq ft plot in the Saryu project too. The buzz in builder circles is some of these acquisitions are actually a swap for promoting the Lodha projects.
Devang Trivedi, a Navi Mumbai developer, said some celebrities have been longtime investors in upcoming farm and resort properties around Mumbai. These have now appreciated manifold after the new airport and improved connectivity via the Atal Setu have been commissioned. Salman Khan, Rakesh Roshan and Paresh Rawal are some of the big investors, he said. Giving the example of the Vasundhra project, near Khopoli, off the Mumbai-Pune Expressway, Trivedi said plots that were purchased at Rs 2-3 lakh an acre two decades ago, are now worth Rs 5 crore an acre.
Commenting on the Rs 855-crore sale of prime estate by actor Jeetendra, Ashok Chhajer, promoter of Arihant Superstructures, said Jeetendra is a long-time realtor. He expects much of the proceeds from his Andheri sale will be ploughed back into other realty investments.
“Property prices are peaking now after the Covid rout, and many celebrities feel this is the right time to cash out before prices plateau or begin dipping,” Chhajer said.
Symbiotic relations
Celebrity investments in real estate is not a new thing. Builders and Bollywood stars have had a symbiotic relationship for over two decades, especially in India’s tinsel capital, Mumbai. Builders want celebs to push their projects, and Bollywood stars and cricketers are keen on some windfall investments and easy-go endorsement money. The two are a good fit.
Omkar 1973, was one such project launched over a decade ago. The three towers in Worli, rising to 73 floors with clear views of the Arabian Sea, offered huge, expensive apartments ‘By Invitation Only’. In the first round, among others Virat Kohli, Anushka Sharma, and Yuvraj Singh booked flats at highly discounted rates. But the large inventory and the prohibitive prices created a huge cash crunch for the promoters. Today, the project is only partly done; and Virat Kohli, who had opted for a 7,000 sq ft apartment for Rs 34 crore, cancelled his booking in 2018.
Besides, the‘soft’ endorsement, some stars have chosen to become brand ambassadors for builders projects, hoping to convert their brand value for a piece of real estate.
Years ago, M.S. Dhoni endorsed the Amrapali Group for their projects in the NCR region. Starting around 2009, the star cricketer became the face of the group in ads and promotions. However, with project delays and customers going to court for alleged fraud, Dhoni faced sharp criticism. He ultimately stepped down as the company’s brand ambassador.
Cricketer Rahul Dravid too had been a brand ambassador for a Mumbai developer, Nirmal Lifestyle, a few years ago. Once a well known brand, the company later faced charges of cheating homebuyers. Promoters Dharmesh Jain and Rajiv Jain were arrested by the Mumbai Police's Economic Offences Wing (EOW) in pursuance of an FIR filed in 2022.
These endorsement forays by celebs, while they provide good returns on discounted purchases and promotion fees, sometimes have a nasty blowback. Some have learnt the hard way. Perhaps they should do their due diligence better when stepping into these choppy waters.