Bombay Dyeing to sell 22 acres land parcel in Mumbai’s Worli for Rs 5,200 crore, ET RealEstate

September 13, 2023

<p>Representative Image</p>
Representative Image

NEW DELHI: The board of directors of The Bombay Dyeing and Manufacturing Company (BDMC) has approved the proposal to sell the land parcel of about 22 acres (along with the associated FSI) in Worli, Mumbai to Goisu Realty, a subsidiary of Sumitomo Realty & Development Company in two phases, for a total consideration of about Rs. 5,200 crore.

BDMC will receive about Rs 4,675 crore from the Goisu Realty for phase-I. The balance amount of about Rs. 525 crore will be received upon completion of certain conditions by BDMC and execution & consummation of the definitive agreements thereto for Phase- II.

Nusli Wadia, chairman of the company said, “On completion of the proposed transaction, the company will be able to record a pre-tax profit in excess of Rs. 4,300 crore on account of this transaction, report a strong positive net worth, extinguish all its borrowings thereby saving interest costs and releasing the charge on encumbered assets, pay dividend in future and have a strong Treasury balance to fund the future realty projects.”

The board of directors of BDMC had charted out a strategy in March 2022 to change the company’s trajectory focusing on realty business for future growth and profitability, accelerating sale of flats in Island City Center, Dadar [ICC], monetizing its land bank, deleveraging the company by retiring its borrowings & improving credit rating, developing the unutilized land parcels of the company and exploring joint development opportunities.

BDMC generated a net revenue of about Rs. 1,050 crore between April 2022 and June 2023, through sale of the flats in ICC, leading to a reduction in the company’s borrowings by about Rs. 900 crore in the same period.

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 sq ft of residential/commercial property and generate a revenue of about Rs. 15,000 crore over the next few years. The development will be planned judiciously in phases to manage company’s cashflows efficiently.

  • Published On Sep 13, 2023 at 06:00 PM IST

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