In July 2019, Japan’s Sumitomo similarly leased a three-acre land parcel in the BKC from the MMRDA for Rs 2,238 crore. (file)
Japan’s Sumitomo has once again turned out to be the successful bidder to lease two commercial plots of the Bandra Kurla Complex (BKC) at Rs 2,067 crore for a period of 80 years. The deal was offered by the Mumbai Metropolitan Region Development Authority (MMRDA), which is the planning agency in the BKC. These two commercial plots were offered by the MMRDA several times along with calling fresh tenders in August 2022. However, it failed to obtain relevant response from the bidders due to the Covid- 19 pandemic despite the tender being called from 2019.
MMRDA Commissioner SVR Srinivas confirmed about the recent land deal that it cracked after waiting for a long time. “We managed to get a deal for both the plots for Rs 2,067 crore. That means, each plot roughly sold for Rs 1,033 crore. The bidder has met the reserve price criteria and it is more than the set price,” Srinivas said.
When asked when the deal will be closed, Srinivas said it will be done in a few days’ time. “The bidder has to get the money, say they bring it from the FDI (foreign direct investment) and later it will be deposited in the MMRDA’s account like the previous deals that Sumitomo did with MMRDA,” he explained.
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The MMRDA had this time offered two commercial plots 69C spread over 5,807.50 sq. mt. and plot 69D over 6077.60 sq. mt. The development potential on each plot is 30,000 sq. mt. and the MMRDA had pegged the reserve price of each plot at Rs 3.44 lakh.
In July 2019, Japan’s Sumitomo similarly leased a three-acre land parcel in the BKC from the MMRDA for Rs 2,238 crore. It turned out to be the biggest land deal of that particular year, especially when the real estate market was hit due to cash crunch.
The MMRDA had previously obtained permission from the state to lease out nine plots of the BKC. As part of it, the said two commercial plots have now been leased with this recent deal. Soon, the other remaining plots will be gradually offered for lease, Srinivas said. The MMRDA carries out land monetisation so it can provide funds to the infrastructure projects ensuring the smooth execution of work.
The MMRDA had before 2019 also leased out several land parcels of the BKC which is now known to be the financial hub of Mumbai that houses top corporate offices, including banks among other leading private offices. The money generated through lease is utilised by the MMRDA for improvement of infrastructure projects.
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In fact, the MMRDA is presently also carrying out various metro projects, including the other big budget projects like Mumbai Trans Harbour Sea link (MTHL) together that cost Rs one lakh crore in the Mumbai Metropolitan Region. In July 2022, it obtained permission from the state government to borrow Rs 60,000 crore from various sources, including the private investors.
