Bombay Dyeing’s mill land in Worli to be sold to Sumitomo for about Rs 5,000 crore, ET RealEstate

September 7, 2023

<p>Representative Image</p>
Representative Image

MUMBAI: It could well turn out to be the city’s largest land deal in terms of value. Though there is no official confirmation, multiple property market sources said 18 acres of Bombay Dyeing‘s mill land on Pandurang Budhkar Marg in Worli is expected to be sold to the Japanese conglomerate Sumitomo for roughly Rs 5,000 crore.

Early this week, a public notice was issued by the law firm Wadia Ghandy on behalf of its unnamed client, wanting to investigate the right, title and interest of the Bombay Dyeing and Manufacturing Co Ltd land measuring over one lakh sq m at Worli.

Wadia’s 18-acre land at Worli may be bought by Sumitomo

Inside the sprawling Bombay Dyeing mill at Worli on a sultry Wednesday afternoon, tempos are lined up outside Wadia International Centre (WIC), the Wadia Group headquarters. The building is being vacated and the chairman’s office has shifted to the Bombay Dyeing property at Dadar-Naigaum.

Behind the Wadia headquarters, the Shilpa Shetty-owned Bastian restaurant too has shuttered. So what’s happening on this prime real estate property in central Mumbai controlled by Nusli Wadia, one of the largest private landowners in the city?

Sources said the 18-acre property is being sold to Japanese conglomerate Sumitomo in Mumbai’s largest land deal by value. Some years ago, Brookfield Asset Management bought Hiranandani Group’s offices and retail space in Powai for Rs 6,700 crore, but the Brookfield deal was for complete buildings while the Wadia deal is for vacant land. A call and message for a comment to a Wadia Group spokesperson did not elicit a response.

The WIC was once touted as “the second flagship project” by Bombay Realty, the real estate company of the Wadia Group. It was meant to be a “luxury mixed use” development of residences, offices, a luxury hotel, mall, high street and a state-of-the-art hospital. Market sources said the Wadias have, however, decided to hive off this property and shift its offices to the Bombay Dyeing Spring Mills in Dadar-Naigaum.

According to the mill land policy, Bombay Dyeing surrendered eight acres to the BMC for recreation space and another eight acres to the state housing authority, Mhada, for public housing from its Dadar-Naigaum mill. A BMC official said the developer will be entitled to transfer of development rights of over 82,000 sq m for surrendering part of its land to the BMC and Mhada. The housing authority has constructed buildings for transit accommodation and homes for mill workers on its portion.

Sumitomo, which is believed to be concluding a deal with the Wadias for the Worli land, are not new in the city’s real estate market. In 2019, Goisu Realty, a unit of Sumitomo, leased a 12,141-sq m land parcel in Bandra-Kurla Complex from MMRDA for Rs 2,238 crore. And last year, the Japanese corporation bagged a tender floated by the MMRDA for two land parcels in BKC for Rs 2,067 crore. With 886 group companies, Sumitomo Corporation is also into development and operations of office buildings, retail facilities and residences as well as logistic facilities and real estate funds.

Nusli Wadia, the Wadia Group chairman, is considered one of the largest private landowners in the city due to his position as the sole administrator of the F E Dinshaw Charities and F E Dinshaw Trust. The Dinshaw land holdings were once believed to be spread over a staggering 1,500 acres, mainly in the western suburbs of Malad and Borivli, most of which are now encroached.

  • Published On Sep 7, 2023 at 08:44 AM IST

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