Bombay Dyeing and Manufacturing Company Limited, owned by the Wadia group, has announced that it will be selling 22 acres of land in Worli, Mumbai to Goisu Realty Pvt, a subsidiary of Sumitomo Realty & Development Company Limited. The deal is valued at ₹5,200 crore, making it one of the largest land deals in Mumbai. The proceeds from the sale will be used to repay debt and fund future projects.
The sale of the land parcel will be carried out in two phases, with the first phase expected to generate ₹4,675 crore and the second phase expected to generate ₹525 crore, subject to certain conditions being met. The decision to sell the land was made in order to strengthen the company’s balance sheet and fund future real estate projects.
The Chairman of the Wadia group, Nusli Wadia, expressed his satisfaction with the deal, stating that the sale of the land will generate a total consideration of ₹5,200 crore. He also mentioned that the company has approved the development of unused land parcels, which have the potential to create about 3.5 million square feet of residential and commercial property, with an estimated revenue of ₹15,000 crore over the next few years. The development will be carried out in phases to manage cash flows effectively.
Upon completion of the transaction, Bombay Dyeing will be able to record a pre-tax profit of over ₹4,300 crore and pay off all its borrowings. The company’s shares closed 6.93% higher at ₹140.50 apiece ahead of the announcement.
Sources:
– Bombay Dyeing and Manufacturing Company Limited
– Sumitomo Realty & Development Company Limited