Sumitomo Corporation Group secured a momentous long-term lease for a 3-acre land parcel in Mumbai's BKC from the MMRDA, valued at over Rs 2,067 crore. The subsidiary, Goisu Realty, won the bid in 2019, concluding the deal after a four-year journey. This marked MMRDA's first land auction in 12 years. The BKC remains a sought-after business district, with the MMRDA looking to raise Rs 3,000 crore from its land parcels. However, policy clarity regarding floor space index purchases is awaited. Goisu Realty also made a significant acquisition in Worli for Rs 5,200 crore. Land transactions are gaining momentum across key Indian markets.
In a remarkable move, the Sumitomo Corporation Group of Japan has officially sealed a lengthy lease agreement with the Mumbai Metropolitan Region Development Authority (MMRDA) for a substantial land parcel spanning nearly 3 acres within Mumbai's prestigious Bandra-Kurla Complex (BKC). The staggering sum of over Rs 2,067 crore was exchanged in this monumental deal. Goisu Realty, a subsidiary of Sumitomo Realty & Development Company, orchestrated the acquisition of this prime land parcel. Their victory as the highest bidder in 2019 marked the beginning of a journey that spanned more than four years, culminating in this significant transaction.
Remarkably, the authority has auctioned its first land parcel in over a decade, since 2007. Throughout this extended hiatus, only a few plots were allocated to select government entities. The transaction, which transpired on September 3, incurred a hefty stamp duty payment of over Rs 111 crore, as documented in CRE Matrix records. The MMRDA, responsible for long-term strategic planning and the implementation of crucial infrastructure projects across the Mumbai Metropolitan Region (MMR), recognized the potential of the BKC as a sought-after business district. It remains poised to attract numerous global and domestic corporate entities, promising substantial economic growth.
The future remains bright for MMRDA, as they set their sights on generating an additional Rs 3,000 crore through the monetization of additional land parcels within the BKC in the upcoming months. Already, bids have been invited for the lease of two more plots within the district's G block. Moreover, the MMRDA envisions monetizing various-sized plots across Mumbai to fund an array of ongoing and planned infrastructure and transportation projects within the MMR. However, the success of these plans hinges on obtaining clarity regarding a policy related to the purchase of additional floor space index (FSI) by winning bidders. The Urban Development Department is currently examining the report that a dedicated committee submitted on the FSI premium policy.
Recently, Goisu Realty further solidified its position in the real estate arena by entering into a momentous agreement with the esteemed Wadia Group entity, Bombay Dyeing & Manufacturing Co. The pact involved the acquisition of an expansive 22-acre land parcel located in Mumbai's Worli locality, complete with its associated floor space index (FSI), for a staggering total of Rs 5,200 crore.
The transaction with Sumitomo will unfold in two distinct phases, with the first instalment amounting to Rs 4,675 crore. The remaining Rs 525 crore will materialize upon the fulfilment of specific conditions by Bombay Dyeing and the formal execution of the definitive agreements for the second phase.
In recent times, the real estate sector has seen a resurgence in land transactions, encompassing outright acquisitions and collaborative ventures, across key property markets such as Mumbai, Pune, Chennai, Hyderabad, and Bengaluru. These deals, whether already finalized or on the cusp of closure, promise to reshape the urban landscape in innovative and profound ways.
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