Hiranandani brothers divide Rs 20,000-crore realty assets – India News
“The brothers have divided 90% of the assets while they would continue to hold 10% of assets jointly,” said sources in the know.
By Raghavendra Kamath
After running the company for 40 years, the billionaire Hiranandani brothers – Niranjan and Surendra – have divided their real estate assets worth Rs 20,000 crore in Mumbai.
“The brothers have divided 90% of the assets while they would continue to hold 10% of assets jointly,” said sources in the know.
According to the settlement, 72-year-old Niranjan would own properties in Powai and allied assets, including residential inventory, commercial properties, land parcels, and so on. Surendra would own assets in Thane near Mumbai, sources said.
“We have done it peacefully and happily after 40 years of running it jointly. It is always better to divide assets in good times,” Niranjan said. However, he did not comment on the valuation part of the division.
In 2016, the Hiranandani brothers sold 4 million sq ft of assets in Powai to Canada-based Brookfield Asset Management for about $1 billion. The division was in the ratio of 50:50. They held 0.5 million sq ft of commercial assets in Powai after the sale and developed about 3,000 residential units in the Mumbai suburb then.
The brothers moved away from the family occupation. Their father LH Hiranandani was a renowned doctor. He and his brother Surendra founded the company in 1978 and bought 250 acres in Powai to develop Hiranandani Gardens.
Surendra could not be contacted for the story.
So far, the parent company Hiranandani Developers was run by Niranjan but ownership was 50:50 between the brothers.
After the division, the brothers would continue to run the assets they own separately, sources said.
Niranjan has 500 acres in Panvel, 250 acres in Alibaug, Khandala near Pune, and in Pune. He has residential projects in Panvel and under development projects in Khandala.
Niranjan also has a warehousing platform with US-based fund manager Blackstone, which has around 3 million sq ft of properties.
Surendra owns properties in Chennai and Bengaluru separately.
In 2019, Niranjan announced that his son Darshan would be the successor to his real estate empire. Darshan led the group’s foray into energy and data centers, and recently into the consumer technology space.
In 2009, Niranjan had a dispute with his London-based daughter Priya Vandrevala, who had accused her father and brother of violating a development deal. In 2016, the London Court of International Arbitration ruled in her favor, asking them to pay Rs 360 crore to Priya. The matter is settled now.
In the real estate segment of IIFL Wealth Hurun India Rich List 2021, Niranjan came at number four with a wealth of Rs 34,100 crore.
