The Guptas have acquired complete development rights over two properties comprising Bandra Talkies and a stretch of property at Goregoan, both at suburban Mumbai in Maharashtra for a consideration of approximately Rs 10.75 crore. But this time round, realty acquisitions are expected to yield significant gains for the promoters in the medium term.

The deal, signed a fortnight back, will include about 50,000 square feet of land comprising Bandra Talkies and 3,50,000 square feet of the original Nirlon Property at Goregaon. This real estate is being acquired by Kandelwal Estates, a private company promoted by the Gupta family.

Both Bandra Talkies and the Goregaon premise was originally bought by Nalin Joshi in the early 90s. The Guptas subsequently got into 50:50 joint venture with Joshi for developing the property in 1993-94. But, sources say, the partnership turned sour after the Joshis failed to implement their part of thedevelopment plans.

The Gupta's decision is believed to be a direct fallout of Joshi's failure to fulfill his part of the joint obligation, apparently due to financial constraints. When the property was acquired, the Joshis and Guptas had a pact for the joint development of the property. According to sources, the Guptas are planning to develop a commercial complex on the lines of a mega shopping mall at Bandra Talkies. The company is yet to decide on the development plans, but indications are that a joint venture with the Oberoi group for developing a club at the premise could be in the offing. There was, however, no official confirmation from the company.

Significantly, institutional sources, this time round, say that the Gupta's latest deal will actually facilitate generation of income, once the properties are developed to their full potential. According to institutional sources, both proposed projects are viable as the Guptas have not made significant investments in the purchase of the properties. Thefinancing for the projects is expected to be either channelised through family resources or through partnerships. Moreover, it is understood that the Guptas could also use the property as collaterals for future acquisitions. According to sources in the property market, the deal could augur well for both parties as the Guptas have the necessary finances to fulfill the development plans for these premises.