Bombay Dyeing to sell Worli site for Rs 5,200 crore

14 Sep 2023 , 12:26 PM

On Wednesday, the Bombay Dyeing and Manufacturing Company (BMDC), a Wadia Group company, authorised a proposal to sell Goisu Realty, a subsidiary of the Japanese real estate developer Sumitomo, a 22-acre tract of land in Worli, Mumbai, for Rs 5200 crore. In terms of value, this is Mumbai’s greatest land transaction.

The entire deal with Sumitomo will be finished in two stages, the first of which will include the first instalment of Rs 4,675 crore. Following the fulfilment of a few requirements by BDMC and the execution and consummation of the definitive agreements for the second phase, the remaining Rs 525 crore will be given to BDMC.

The group has made the decision to sell the land lot in order to pay off its Rs 3,969 crore debt. Over the past year, it has already repaid debt of Rs 900 crore.

Tempos were parked outside Wadia International Centre (WIC), the location of the Wadia Group, last week. The chairman’s office was moved to the Bombay Dyeing facility at Dadar-Naigaum as the building was being demolished. The Shilpa Shetty-owned Bastian restaurant was also closed, and it was located behind the Wadia corporate offices.

Bombay Dyeing gave up eight acres of its Dadar-Naigaum mill’s land to the BMC for leisure space and another eight acres to the state housing authority, Mhada, for public housing in accordance with the mill land policy. According to a BMC official, the developer will be eligible to transfer development rights for more than 82,000 square metres in exchange for turning up a portion of its land to the BMC and Mhada. On its half, the housing authority built residences for mill workers as well as buildings for transit accommodations.

A 12,141 sq m land lot in the Bandra-Kurla Complex was leased from MMRDA in 2019 by Goisu Realty, a division of the Japanese Sumitomo, for Rs 2,238 crore. Additionally, the Japanese company won the MMRDA’s tender last year for two BKC land parcels at Rs 2,067 crore.

Sumitomo Corporation, which has 886 group companies, also develops and manages office buildings, retail establishments, and homes in addition to logistical infrastructure and real estate funds.

Prior to this, a public notice was published by the legal firm Wadia Ghandy on behalf of an anonymous client seeking information regarding the right, title, and interest in the Worli property owned by the Bombay Dyeing and Manufacturing Co Ltd that measures more than one lakh square metres.

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