MUMBAI: Well-known Famous Studios based bang opposite the Mahalaxmi racecourse will soon go in for a joint redevelopment with the Ajay Piramal-led Piramal Realty entering into a deal with Arun Roongta, the owner of Famous Studios.

The builder can develop around one lakh sq ft space on this plot. However, the final development potential will depend on approvals from civic authority. The transaction for the prime property spread over around one and a half acre is expected to be worth around Rs 3.50 billion.

The deal will have Piramal Realty and the owner of the studio jointly develop a high-end residential property overlooking the racecourse for which the developer has offered to pay around Rs 8 billion upfront, it has been reported by a leading financial daily. The realty firm has also offered nearly 40 per cent share in the project revenue to the landlord.

Famous Studios was set up in 1946 and has as many as ten floors that were rented out for shooting purposes. Currently, it has only eight with the other two being used for post-production purposes. It also has a preview theatre, and around 10 to 15 offices of production houses.

Around two years ago, DB Realty had initiated talks with Roongta for the property but the talks fizzled out owing to the structure of the proposed transaction then.

Since its launch, Famous studios has made an invaluable contribution to the sphere of films, ad films and TV shows.