In a blockbuster deal, Goisu Realty, a subsidiary of Sumitomo Corporation of Japan, picked up a massive 22-acre parcel of land belonging to Nusli Wadia's Bombay Dyeing in Worli on Wednesday for a whopping Rs 5,200 crore.
The deal was approved by Bombay Dyeing's board of directors and now it needs to be endorsed by the shareholders, the company said in a statement.
"Upon approval of shareholders, BDMC (Bombay Dyeing & Manufacturing Co) will receive about Rs 4,675 cr from the buyer for Phase - I. The balance amount of about Rs 525 cr will be received upon completion of certain conditions by BDMC and execution & consummation of the definitive agreements thereto for Phase - II," the Wadia company said.
The land along with associated floor space index (FSI) has been sold. Goisu may get an FSI of 4.0 and if the municipal commissioner concurs, it may get an additional 1.0 FSI.
The decision to monetise the land has been taken with a view to finance other real estate projects of the company. It explained that the deal has been entered into with a view to strengthen its balance sheet of the company for funding future real estate projects.
Wadia Group's Expansion Plans
An elated Nusli Wadia, Wadia Group Chairman, expressed his happiness over the deal. The funds from the sale will help power the Wadia group to become a front-runner in the real-estate market of Mumbai. The company has already developed a large residential complex on its property at Naigaum in Dadar.
Future Real Estate Projects
“The board has also, in-principle, approved the development of the unutilized land parcels available with the company having a potential to create about 3.5 million square feet of residential/commercial property and generate a revenue of about ₹15,000 crores over the next few years.
"The development will be planned judiciously in phases to manage company’s cash flows efficiently. The company will also evaluate other joint development and partnership opportunities to create a steady pipeline of future revenue and profits," the company added.
Goisu Realty's Track Record
Goisu Realty was registered in Mumbai on January 9, 2019 and since then it has entered into at least two big ticket deals.
In October, 2022 it had taken on lease for 80 yrs from MMRDA, two commercial plots at the Bandra-Kurla Complex spread over 12,141 sq.mtrs for Rs 2,238 Cr, in what was regarded as the biggest land lease entered into by a foreign entity.
Goisu is managed by two directors Taiji Endo and Hironori Kawahara. Email to the company did not yield any response.