BY: Ateeq Shaikh
MUMBAI: It’s a never-ending wait for the Mumbai Metropolitan Region Development Authority (MMRDA) to lease out two plots in Bandra Kurla Complex (BKC). The government agency wants to lease out two plots to partially finance infrastructure projects it has been executing within Mumbai and the rest of the Mumbai Metropolitan Region (MMR).
The two plots that the MMRDA has been attempting to monetise are C-44 and C-48 within the Central Business District of Bandra Kurla Complex. It intends to raise a minimum of Rs 3,44,448 per square metre of permissible built-up area.
The plot area of both the land parcels put together is 6,018.90 sq m that has a permissible built-up area of 30,000 sq m.
Hence, as per the reserve price, the MMRDA is looking at raising a minimum of Rs 1,033.34 crore.
For several years now, the MMRDA has been making attempts to monetise its land bank at Bandra Kurla Complex. Back in 2016, it had put up plot C-65 for lease, but managed to get a bidder only in early 2019, when it had also put up C-44 and C-48 up for grabs.
Japanese major Sumitomo Corporation picked up the C-65 plot for Rs 2,238 crore. The offer letter was issued to Goisu Realty for a lease period of 80 years.
The existing pandemic-induced economic slowdown has made it even more challenging for the development authority to raise funds through its real estate sources.
“Hence, once again it has extended the bid submission deadline by another month,” said an official from MMRDA’s Town & Country Planning Department.
To make the deal more lucrative for the real estate players, the MMRDA had amended the reservation of all the plots in the financial district from solely commercial to mixed usage – a combination of residential and commercial. Yet, it isn’t getting a favourable response. Despite such difficult market conditions, it is hoping to raise over Rs 2,000 crore from the sale of these two plots.
For the last few years, the MMRDA has been executing several infrastructure projects, the most capital intensive being the metro lines in the MMR. All the infrastructure projects put together exceeds Rs 1 lakh crore. Apart from internal accruals, it has borrowed funds from international bilateral and multilateral development banks, among others.