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Mumbai?s new realty bonanza

60-acre mega plan in Worli, Wadala will yield Rs 8,000 crore in flats, malls, reports Gurbir Singh.

india Updated: Oct 29, 2006 14:01 IST

Bombay Dyeing’s 60 acres—spread across two mills — will be Mumbai’s most lucrative real estate project. Conservative estimates put the commercial yield on it at Rs 8,000 crore, about three times the worth of the land.

“The island city will see two sets of spectacular development — one along the western coast and the other on the eastern side,” Jeh Wadia told HT, referring to the Wadia Group’s real estate plans for Bombay Dyeing and Manufacturing Mills.

The realty, as per civic records, translates into 35 acres within the now closed Spring Mills at Dadar-Wadala in the east and 25 acres at Worli, stretching from Pandurang Bhutkar Marg to Century Bazaar.

At Spring Mills, Bombay Dyeing has already had a soft launch for the first part of its 160-apartment residential project. These will be in the luxury segment with three- and four-bedroom configurations, with bookings opening at Rs 12,000 per sq ft. This is a scale-down as the original civic permission, taken in December 2004, had sanctioned 80,000 sq m for residential development.

With property prices going through the roof, the textile company seems to have preferred the commercial option. As things stand, Bombay Dyeing has pitched for a mega 1 million sq ft mall — possibly the largest in the island city. The first phase will see a 5 lakh sq ft

“It will not be a traditional mall with a single large structure, but a series of buildings with inter-connected shopping complexes,” said a company planner.

“The object is to bring in budget shoppers and not cater only to the luxury segment,” he added, referring to the large working class and lower middle class inhabitants in the area.

Considering the severe shortage of hotel rooms, the company is also developing a five-star hotel. With these upmarket projects in a well-landscaped 35-acre complex of 2,000 trees, the face of the Wadala-Sewree zone dotted with chawls and narrow roads is likely to change.

The developers will have to part with 25,775 sq m (4 acres) for gardens and open spaces and an additional 26,556 sq m (4.6 acres) for development of public housing by Maharashtra Housing and Area Development Authority.

The Worli unit will probably see a more complex, phase-wise development since the company expects to develop real estate while keeping part of the textile operations running. Most of Bombay Dyeing's manufacturing operations have been or are being shifted to the newly-acquired unit at Ranjangaon, in which the company has invested Rs 295 crore.

At Worli, the company has been cleared to develop 13,319 sq m (1.43 lakh sq ft) of commercial space. "The current leased space in the Bombay Dyeing buildings in Worli are a stop-gap arrangement. These will gave way to full-scale development later," Jeh, a director in the company, said.

The company intends to convert part of its textile-manufacturing unit at Worli into an international designer studio producing high-end apparel for brands in Switzerland and elsewhere, the company planner said.

The company has settled a VRS package with its 3,127 workers at a cost of Rs 120.55 crore.

First Published: Oct 29, 2006 14:01 IST