K Raheja Corp has entered into advanced talks to acquire the 1.5-acre Famous Studios property in South Mumbai for around Rs 650 crore.

Established in 1946, the iconic studio has been a hub for Bollywood, television and advertising shoots. The transaction is structured as a joint development agreement under which developed space will be shared with current owners. The land parcel on Dr. E Moses Road, overlooking Mahalaxmi Racecourse, offers a development potential of nearly four lakh sq. ft., subject to civic authority approvals.

In 2012, Piramal Realty’s Rs 350 crore venture did not go through due to leasehold conversion hurdles, tenant relocation challenges and commercial disagreements. Over decades, Famous Studios adapted to changing industry needs, adding digital post-production and event facilities, but rising land values have made redevelopment attractive.