The Wadias are finally getting into property development in a major way. The group, which owns vast tracts of land in different parts of Mumbai, has started constructing a 36-storey skyscraper with luxury apartments on its land — which used to house Bombay Dyeing’s textile mill (Spring Mill) -- in central Mumbai.
Though the Wadias have been constructing residential properties for long, the new project—which is being developed in collaboration with a global architect—signals its appetite for mega ventures.
Industry sources said that 60 per cent of the apartments have already been booked and the rest would be sold off during the the current financial year. The project is slated for completion in 15 to 18 months.
The Wadias have also started construction work on the shopping centres and commercial offices at Dadar and Worli. These commercial developments are part of initial development plans at both the sites. In three years' time, the mill lands will transform into posh residential and commercial premises.
According to the sources, the Wadias have lined up huge investments for their real estate plans. Group flagship Bombay Dyeing is raising Rs 1,000 crore as part of its capital expendture programme. A major part of this will be used for real estate development.
"The real estate sector continues to get the benefit of Foreign Direct Investment in the island city and its suburbs. Though volume growth of more than 10 per cent is expected to continue in the coming year, the significant growth of unit prices and rents in Mumbai of more than 30 per cent per annum has resulted in an overheating in the marketing the high end," Bombay Dyeing said in its recent annual report.