The iconic South Mumbai property that has been a hub for India's film, television and advertising shoots since 1946, is set to change hands through a transaction valued at around Rs650 crore, said persons with direct knowledge of the development.
Realty developer K Raheja Corp is in advanced talks to acquire the 1.5-acre property, located on Dr E Moses Road overlooking Mahalaxmi Racecourse, a landmark address that has hosted generations of Bollywood and advertising professionals.
"The company is set to conclude the deal structured as a joint development pact for the consideration involving a certain part of developed space to be shared with the current owners. Under current planning norms, the plot offers a development potential of around 4 lakh sq ft area," said one of the persons mentioned above.
The final development potential, according to property market experts, will depend on approvals from the civic authority.
This is not the first time the Famous Studios land parcel has been targeted for redevelopment. In 2012, Piramal Realty had entered into a joint venture with the owners of the studio, to build luxury apartments on the land.
That deal, valued at around Rs350 crore, fell through within a year amid disagreements over commercial terms, challenges in converting the BMC leasehold plot from commercial to residential use and complications in relocating existing tenants.
Over the decades, Famous Studios became a go-to venue for production houses and advertising agencies. Its sound stages hosted countless feature films, television serials, ad films and corporate shoots.
The facility adapted to changing industry needs, adding digital post-production services and expanding into events and previews. Yet, as demand for physical studio spaces in central Mumbai waned and land values soared, redevelopment became an increasingly attractive proposition for its owners.
ET's email query to K Raheja Corp and messages to representatives of Famous Studios remained unanswered.
Land transactions across India have been witnessing a sharp rise, driven by growing demand for housing, commercial and mixed-use developments. Developers are actively pursuing outright acquisitions, joint development agreements and joint ventures to secure prime land parcels, especially in and around top urban centres.
