K Raheja Corp is in advanced negotiations to acquire the iconic Famous Studios property in South Mumbai for approximately Rs 6.5 billion, according to industry sources familiar with the matter.

The 1.5-acre plot, located on Dr. E Moses Road and overlooking the Mahalaxmi Racecourse, carries a development potential of nearly 400,000 sq. ft., subject to approvals from civic authorities. The deal is being structured as a joint development agreement, under which a portion of the developed space will be shared with the current owners.

Established in 1946, Famous Studios has been a landmark for Bollywood film, television, and advertising shoots. Over the years, the studio has modernised its offerings by incorporating digital post-production and event spaces. However, the soaring value of South Mumbai real estate has shifted focus towards redevelopment.

This is not the first attempt to redevelop the site. In 2012, Piramal Realty was in talks for a Rs 3.5 billion deal, which ultimately fell through due to issues around leasehold conversion, tenant relocation, and commercial disagreements.