Mumbai's Biggest Land Deal Of Rs 5,200 Crore Makes Bombay Dyeing's Shares Soar High

The shares of Wadia Group's textile giant Bombay Dyeing and Manufacturing Company (BMDC) have jumped more than 15% today after Mumbai's biggest ever land deal.

Bombay Dyeing Cracks Mumbai's Biggest Land Deal

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On Wednesday, Bombay Dyeing approved a proposal to sell the land parcel of about 22 acres in Worli, Mumbai, to Goisu Realty, a subsidiary of Japanese realty developer Sumitomo, for Rs 5200 crore. This is Mumbai's largest land deal in terms of value.

As per the ET report, the whole transaction with Sumitomo will be completed in two phases, including the first tranche of Rs 4,675 crore. The balance of Rs 525 crore will be received upon completion of certain conditions by BDMC and execution and consummation of the definitive agreements for the second phase.

The Wadia group has decided to monetise the land parcel to repay the debt,whicht currently stands at Rs 3,969 crore. It has already repaid debt worth Rs 900 crore over the last year.

Last week, tempos were lined up outside Wadia International Centre (WIC), the Wadia Group headquarters. The building was being vacated, and the chairman¡¯s office was shifted to the Bombay Dyeing property at Dadar-Naigaum. Behind the Wadia headquarters, the Shilpa Shetty-owned Bastian restaurant was also shuttered.

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More Details About The Deal

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According to the mill land policy, textile giant Bombay Dyeing surrendered eight acres to the BMC for recreation space and another eight acres to the state housing authority, Mhada, for public housing from its Dadar-Naigaum mill. A BMC official said the developer will be entitled to the transfer of development rights of over 82,000 sq m for surrendering part of its land to the BMC and Mhada. The housing authority has constructed buildings for transit accommodations and homes for mill workers on its portion.

Back in the year 2019, Goisu Realty, a unit of Japanese Sumitomo, leased a 12,141-sq-m land parcel in Bandra-Kurla Complex from MMRDA for Rs 2,238 crore. And last year, the Japanese corporation bagged a tender floated by the MMRDA for two land parcels in BKC for Rs 2,067 crore.

With 886 group companies, Sumitomo Corporation is also into the development and operation of office buildings, retail facilities, and residences, as well as logistic facilities and real estate funds. Earlier, a public notice was issued by the law firm Wadia Ghandy on behalf of its unnamed client, wanting to investigate the right, title, and interest of the Bombay Dyeing and Manufacturing Co. Ltd. land measuring over one lakh sq m at Worli.

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