The Bombay Dyeing and Manufacturing Company Limited (BDMC), on September 13, announced that its board of directors has approved a proposal to sell a land parcel of about 22 acres (along with the associated Floor Space Index, or FSI) in the Worli area of Mumbai to Goisu Realty Private Limited, a subsidiary of Sumitomo Realty & Development Company Limited of Japan, in two phases, for a total consideration of about Rs 5,200 crore.
In a statement, Bombay Dyeing said the transaction is subject to the approval of its shareholders.
"Upon approval of shareholders, BDMC will receive about Rs 4,675 crore from the buyer 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," the company said in a statement.
“I am happy to inform that BDMC is entering into agreements with Sumitomo Group for sale of about 22 acres of land (along with the associated FSI) in Worli, Mumbai, for a total consideration of about Rs 5,200 crore,” said Nusli Wadia, Chairman of BDMC.
"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 on interest costs, and release the charge on encumbered assets," Wadia added.
The company said in the statement that the Board of Directors of BDMC had charted out a strategy in March 2022 to change the company’s trajectory by focusing on the realty business for future growth and profitability, accelerating the sale of flats in Island City Centre (ICC), Dadar, monetising land banks, etc.
The statement further said that the board has also given in-principle approval for the development of unutilised land parcels available with the company having the potential to create about 3.5 million square feet (msq) of residential and commercial property and generate a revenue of about Rs 15,000 crore over the next few years.
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