Mumbai: After the wait of four years, the Mumbai Metropolitan Region Development Authority (MMRDA) has finally managed to lease out two of its prime plots in the business district of Bandra Kurla Complex for Rs. 2,067 crore. The bid was finalized on Rs 2 more than the reserved price stipulated by the development authority.
The plots were taken on lease by Goisu Realty Private Limited, a unit of Japan's headquartered Sumitomo Corporation, for next 80 years. Listed in the Fortune Global 500 list, Sumitomo Corporation is a global network having an interest in a variety of products and services, import and export, trilateral trade, and domestic and international business investment.
Commissioner of MMRDA S V R Srinivas said, "Guiso Realty of Sumitomo Corporation was the sole bidder for the plots and they quoted higher than our set reserve price."
The size of plot is 5,807.50 sq. mtrs. and 6,077.60 sq. mtrs. On each of the plots, the company is permitted to have a built-up area of 30,000 sq. mtrs., which is a total of 60,000 sq. mtrs. Goisu Realty quoted a lease premium of Rs. 3,44,500 per sq. mtr. of built-up area as against the reserve price of Rs. 3,44,448.
As per the calculation, the MMRDA will get Rs 1,033.50 crore against the reserve price set of Rs 1,033.34 crore. The plots are two amalgamated land parcels—C44 and C48 at BKC’s G Block—that were reserved for commercial purposes.
To make the offer lucrative for the private players, the authorities amended the reservation to mixed usage (combination of residential and commercial). Yet, it struggled to get a favourable response in the last four years.
The Japanese company is likely to route the amount via the Foreign Direct Investment route.
In 2019, Sumitomo Corporation, the same company, took up another plot measuring three acres in Bandra Kurla Complex from the MMRDA for Rs 2,238 crore.
After these three plots, another six plots are likely to be put up for lease by the MMRDA to monetise them. The proceeds from it will be used to finance the establishment of infrastructure and transportation networks in the Mumbai Metropolitan Region.
In the last few years, the development authority has been executing various infrastructure and transportation projects, the most capital-intensive being the metro rail links in the MMR. All the infrastructure projects in the MMR put together require a capital investment of Rs 1 lakh crore.
On an average, it requires an investment of around Rs 30,000 crore per annum to execute infrastructure projects. Apart from internal accruals, the MMRDA had borrowed funds from international bilateral and multilateral development banks, among others.
