In a major real estate deal, Mumbai Metropolitan Region Development Authority (MMRDA) will earn Rs 2,067 crore with a Japanese firm bagging the tender for leasing two land parcels at Bandra-Kurla Complex for the next 80 years. The bid for the two commercial plots, measuring 5,807.50 sq m and 6,077.60 sq m, was finalized at a little more than the reserved price stipulated by the development authority.
“Goisu Realty Pvt Ltd, a unit of the Tokyo-headquartered Sumitomo Corporation, was the successful bidder for both plots,” metropolitan commissioner S V R Srinivas said. “The deal has been an extremely positive development for the real estate market in Mumbai, especially for commercial space.” The development potential on each plot is 30,000 sq m, said officials.
MMRDA had to cancel the earlier bidding process for the two amalgamated land plots – C44 and C48 in G Block – as it failed to obtain relevant response due to the Covid- 19 pandemic. When fresh tenders were invited in August 2022, MMRDA received only a single bid from Goisu Realty. While the reserve price quoted by MMRDA was Rs 3,44,4485 per sq m of built-up area, Goisu Realty quoted Rs 3,44,4500. The total lease premium earned for each plot is Rs 1,033.50 crore, which adds up to Rs 2,067 crore for both plots.
In 2019, Goisu Realty had leased a 12,141-sq m land parcel in BKC from MMRDA for Rs 2,238 crore, which was one of the biggest land deals by a foreign company.
This real estate deal is a bonanza for MMRDA which is executing various infrastructure and transportation projects worth rupees thousands of crores, including Metro corridors, elevated roads and various connectors in the Mumbai Metropolitan Region (MMR). In July, the state cabinet had given approval to MMRDA to raise Rs 60,000 crore in loans. In Phase I, Rs 12,000 crore will be borrowed for which the government has decided to stand as guarantor to fund infrastructure projects in MMR.
MMRDA expects good cash flow from various sources of revenue over the next 25 years, but the Rs 60,000 loan amount will act as buffer in case of non-receipt from expected sources in the next five years due to delay in projects and its impact on revenue in-flow. The authority’s revenue has been hit due to delay in commissioning of projects because of the pandemic-induced lockdown and lack of interest for land parcels put up on lease in BKC.
MMRDA said it is confident about repaying the loan by levying development charges to residential, commercial and industrial units, besides monetising the land. The money needed for operations and maintenance of assets can be raised by taxes and cess advertising, said officials.
