DB Realty has leased out approximately 186.52 acres of land parcel to Brihanmumbai Municipal Corporation (BMC) for about Rs 248 crore average per annum rent over the duration of five years, the company said in a BSE filing.
BMC had invited tenders for hiring of land parcels for setting up casting yards and allied works use for its various vital projects.
Mira Real Estate Developers (Mira), a partnership firm in which the company or its wholly-owned subsidiary hold 100% share in profit/loss, is owner of 254.99 acres of land adjoining Mira Road Railway Station.
The said land is vacant and un-developed. From the total land holding of 254.99 acres, land admeasuring 186.52 acres was offered in the tender.
The letter of acceptance (LOA) was issued by the BMC on March 11, 2024 in favor of Firm, for renting out approximately 186.52 acres of land parcel.
Under this tender, land admeasuring 186.52 acres (7,54,859.64 sq meters) shall be temporarily handed over to the BMC on a leave and license for a duration of three years (can be further extended by two years) at a license fee of approximately Rs 248 crore average per annum over the duration of five years.
As per the LOA, the license fee rental has to be paid on basis by quarterly basis by the BMC to Mira.
The Mira land which is largely situated in the residential zone, has over 50 million sq ft of development potential which is expected to be undertaken for development of an integrated township post completion of the infrastructure linking the Mira land. The current residential capital value in the area is approx Rs 20,000 per sq feet carpet area.