Godrej Properties Ltd has acquired Bollywood legend Raj Kapoor’s bungalow at Chembur in Mumbai for around Rs 100 crore to develop a luxury housing project with a sales potential of Rs 500 crore.

The land was purchased from the Kapoor family, legal heirs of Raj Kapoor, the company said in a regulatory filing.

“The total size of the land is around 1 acre. We will develop a premium housing project on this land parcel…The project will have an estimated sales revenue potential of about Rs 500 crore,” news agency PTI quoted Godrej Properties executive chairman Pirojsha Godrej as saying.

Godrej Properties said in a filing that the site is located at Deonar Farm Road, Chembur adjacent to Tata Institute of Social Sciences (TISS).

The bungalow adjoins RK Films and Studios, spread across 2.2 acres, which Godrej Properties had bought from the Kapoor family in May 2019 to develop a premium mixed-use project Godrej RKS. The project is expected to be delivered this year.

Gaurav Pandey, MD and CEO, Godrej Properties, said, “We are pleased to add this iconic project to our portfolio and are grateful to the Kapoor family for entrusting us with this opportunity.”

The demand for premium developments has been strong over the past few years, he said, adding this project will allow the company to further strengthen its presence in Chembur.

Commenting on the deal, film actor Randhir Kapoor — son of late Raj Kapoor — said, “This residential property in Chembur has been of great emotional and historical significance to our family. We are happy to once again associate with Godrej Properties to take forward this rich legacy for the next phase of development for this location.”