Bombay Dyeing to sell 22-acre land in Worli to Japanese firm for ₹5,200 crore

Wadia said the Bombay Dyeing board had charted out a strategy in March 2022 to change the company’s trajectory by focusing on realty business for future growth and profitability, accelerating sale of flat in its Island City Centre project in Dadar and monetising its land bank

Mumbai: In one of the biggest land deals in Mumbai real estate market in recent times, the Wadia Group on Wednesday announced the sale of the land parcel of 22 acres at Wadia International Centre in Worli to Goisu Realty Private Ltd, a subsidiary of Japanese group Sumitomo Corporation for ₹5,200 crore.

Mumbai, India - Sept. 8, 2023: Aerial view of Bombay Dyeing Mill Compound at Worli in Mumbai, India, on Friday, September 8, 2023. (Photo by Anshuman Poyrekar/ Hindustan Times) (Hindustan Times)

In a meeting on Wednesday, the board of directors of the Bombay Dyeing and Manufacturing Company (BDMC) formally approved the proposal to monetise the land. The land parcel will be sold along with the associated FSI in two phases, subject to approval of shareholders, the company said in a statement.

The BDMC will receive about ₹4,675 crore from Goisu Realty in Phase-I. They will receive around ₹525 crore after BDMC completes certain conditions of the deal and executes definitive agreements in Phase- II.

Bombay Dyeing Chairman Nusli Wadia said the company will be able to post a pre-tax profit in excess of ₹4,300 crore on the completion of the transaction.

Wadia said the Bombay Dyeing board had charted out a strategy in March 2022 to change the company’s trajectory by focusing on realty business for future growth and profitability, accelerating sale of flat in its Island City Centre project in Dadar and monetising its land bank. He said the board had envisaged developing unutilised land parcels and exploring joint development opportunities.

“With a view to deleverage and strengthen the balance sheet of the company for funding future real estate projects, the Board decided to monetize BDMC’s land parcel at Worli, Mumbai, after evaluating various other options,” he said.

Wadia said the board has also, in-principle, approved the development of the unutilized land parcels available with the company having a potential to create about 3.5 million square feet of residential / commercial property and generate a revenue of about ₹15,000 crore over the next few years.

Industry experts watching the land deal closely said the 3.5 million sq ft land belonging to the Bombay Dyeing group consisted of two land parcels located between Worli and Naigaon. Bombay Realty, Bombay Dyeing’s realty arm has already used the Spring Mills land and completed Springs, a 40-storey tower, in Dadar, and two luxury towers, 59-storey One ICC and 65-storey Two ICC in Island City Centre project in Naigaon.

This will be the biggest land parcel to be acquired by Sumitomo Corporation in Mumbai’s city centre. It had forayed into Mumbai real estate in July 2019 by winning the bid for leasing a three-acre MMRDA plot in Bandra Kurla Compex for ₹2,238 crore. It also bid successfully in October 2022 for two more commercial plots spanning 11,900 csq ft for ₹2,067 crore in BKC’s G block.