Bombay Dyeing is reportedly in a discussion to sell 18 acres of its mill land on Pandurang Budhkar Marg in Worli to the Japanese conglomerate Sumitomo for approximately ₹5,000 crore, said multiple media reports.
According to the reports, a public notice by the law firm Wadia Ghandy on behalf of an unnamed client was looking to investigate the right, title and interest of the Bombay Dyeing and Manufacturing Co limited, a diversified company engaged in real estates, textiles and polyester, that measured to more than one lakh sq m at Worli.
Biggest land deal in Mumbai
This deal could turn out to be one of the biggest deals in Mumbai. However, a few years ago, Brookfield Asset management bought Hiranandani Group's offices and retail space in Powai for ₹6,700 crore making it the biggest deal. But, the deal was for the buildings while the Wadia deal is for vacant land.
As the deal is for vacant land the building is being vacated. While the chairman's office has been shifted to Dadar-Naigaum, Shilpa Shetty-owned Bastian restaurant has been shuttered.
Why is Bombay Dyeing selling the property?
This proposed sale of land would help Bombay Dyeing address its existing debt and also support corporate objectives. In the financial year 2023, the company reported a net debt of ₹3,456 crore with a revenue of ₹2,674 crore. The company in FY23 reported a loss of ₹517 crore.
The WIC was meant to be a luxury mixed use development of residences, luxury hotel, offices, hospital and mall. However, according to a media report by the Times of India the Wadias have decided to hive off the property and have moved its office.
8 acres for BMC and MHADA
Additionally, the mill land policy, Bombay Dyeing surrendered eight acres of land to the Brihanmumbai Municipal Corporation (BMC) for recreation space and it also gave eight acres land to the state housing authority, Mhada, for public housing from its Dadar-Naigaum mill. The report by Times of India quoting a BMC official said that the developer will transfer the development rights of over 82,000 sq m for surrendering part of its land to the BMC and Mhada.
The Wadia group has an extensive land portfolio of around 700 acres across its different companies and charitable trusts in and around Mumbai and the decision to sell off land is to use its assets and better enhance its financial position.
