MMRDA to earn ₹3,840.50 crore from leasing 3 BKC plots

MUMBAI: The Mumbai Metropolitan Region Development Authority (MMRDA) is set to draw ₹3,840.50 crore by leasing three plots in Bandra Kurla Complex (BKC) to private entities.

In August and October 2024, MMRDA had put out 10 plots on the block through competitive bidding for a lease tenure of 80 years. After several deadline extensions, by the end of February, it received a response for six plots to have a hospital, educational institute, clubhouse-cum-sports facility and office space. Of these, of Friday, it opened financial bids for 3 plots meant for commercial spaces.

Japanese firm Goisu Realty Pvt Ltd of Sumitomo emerged as the highest bidder for plot C-13. The reserved price for permissible built-up area on this plot was ₹974.51 crore or ₹4,80,945 per square meter for 28,287.60 sq m of built-up area. The Japanese company placed a bid of ₹1,360.48 crore, which is 39.60% above the reserve price for this 70.719-acre big plot.

Likewise, another plot, C-19, picked by Goisu Realty Pvt Ltd as well, had a reserve price of ₹840.12 crore and it bid 40.20% more price at ₹1,177.86 crore. On this 60.966-acre plot, 26,386.68 sq m of built-up area is allowed. The company’s quote is 40.20% above the reserve price kept by MMRDA.

This is the fourth round of investment in the business district for the Japanese firm. The earlier ones included three commercial plots in 2019 and 2022, bid for a cumulative amount of ₹4,305 crore. The one leased out in 2019 was for ₹2,238 crore and the other two for approximately ₹1,033.5 crore each.

The third plot, C-80, was bagged by Brookfield, backed The Leela hotels owner Schloss Bangalore. Schloss Bangalore, with Arliga Ecospace Business Parks, had bid for the 84.11-acre land, which had a reserve price of ₹3,87,000 per sq m of built-up area. The permitted built-up area on this plot is 33,647.52 sq m or FSI 4. As against the reserve price of ₹1,159.16 crore, MMRDA received 12.33% higher bid of ₹1,302.16 crore.

The proceeds through monetisation of the land parcels will be utilised to finance MMRDA’s multiple infrastructure projects in the MMR.

Prior to 2024, MMRDA’s previous attempt to monetise on the real estate was in May 2023. Apart from monetising the land bank in BKC, the authority has been heavily borrowing to ensure the funding pipeline does not dry up for the ongoing and planned development projects.