Tue. Sep 26th, 2023
    Bombay Dyeing to Sell Land Parcel in Mumbai’s Largest Land Deal

    Bombay Dyeing and Manufacturing Company (BMDC), a subsidiary of the Wadia Group, has approved a proposal to sell a 22-acre land parcel in Worli, Mumbai to Goisu Realty, a subsidiary of Japanese real estate developer Sumitomo. The deal, valued at Rs 5200 crore, marks Mumbai’s largest land deal in terms of value.

    The transaction will be completed in two phases, with the initial tranche of Rs 4,675 crore. The remaining Rs 525 crore will be received upon the completion of specific conditions by BMDC and the execution of definitive agreements for the second phase. The decision to monetize the land parcel comes as the Wadia Group aims to repay its debt, which currently stands at Rs 3,969 crore. The group has already repaid Rs 900 crore over the past year.

    As part of the mill land policy, Bombay Dyeing has surrendered eight acres to the BMC for recreational space, and another eight acres to the state housing authority, Mhada, for public housing. In return, Bombay Dyeing will be entitled to transfer development rights of over 82,000 sq m. The housing authority has already constructed buildings for transit accommodation and homes for mill workers on its portion of the land.

    Goisu Realty, a subsidiary of Sumitomo, has previously leased a land parcel in Bandra-Kurla Complex from MMRDA for Rs 2,238 crore and has also acquired land parcels in BKC for Rs 2,067 crore through a tender floated by the MMRDA. Sumitomo Corporation, with 886 group companies, is involved in the development and operation of various real estate properties, including office buildings, retail facilities, residences, and logistics facilities.

    In a separate development, a public notice was issued to investigate the right, title, and interest of Bombay Dyeing’s land measuring over one lakh sq m at Worli. The notice was issued by the law firm Wadia Ghandy on behalf of an unnamed client.

    – Wadia Group entity Bombay Dyeing and Manufacturing Company approves sale of land parcel in Mumbai for Rs 5,200 Cr – Economic Times
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