Century Textiles acquires ownership rights of 10-acre leasehold land parcel from Nusli Wadia

Century Textiles, which owns Birla Estates, said that the 10 acre land parcel adds Rs 14,000 crore by way of booking value potential

Aditya Birla Group-owned Century Textiles and Industries Ltd has acquired the ownership rights of approximately 10-acre leasehold land parcel in Worli, Mumbai from Wadia Group chairman Nusli Wadia. The amount paid for this transaction is Rs 1,100 crore, according to an exchange filing.

With this transaction, the existing leasehold interest of Century Textiles is merged with the ownership rights. This acquisition will be developed through its wholly owned subsidiary Birla Estates Pvt Ltd, Century Textiles said in a release.

According to the release from Century Textiles and Industries, the 10-acre land parcel has a booking value potential of Rs 14,000 crore, and also paves the way for a contiguous holding of around 30 acres, which has a combined booking value potential of Rs 28,000 crore. The area includes the company's Birla Niyaara luxury housing development, which has had total sales of Rs 5,700 crore.

Worli as a location is in the forefront of the current bullish trend in luxury real estate, the release stated, adding that the location is seen as a hotspot for buyers in not just South Mumbai but also beyond. Century Textiles, through Birla Estates, has been on its way to pivot to being a real estate player, through premium and luxury projects across cities such as Mumbai, the National Capital Region, Bengaluru, and Pune.

The Wadia Group, which includes Britannia Industries, Bombay Dyeing, and Bombay Realty, as well as the defunct airline Go First, has been targeting the monetisation of its land parcels.

In August, Nusli Wadia-chaired Bombay Dyeing closed a deal with a subsidiary of Sumitomo Realty to sell a 22-acre land parcel in Worli worth Rs 5,200 crore, registering the sale of the last two acres of agreed land sale for Rs 440 crore, as part of Bombay Dyeing's strategy to pare its debt. Bombay Dyeing's deal with Sumitomo, through the latter's Goisu Realty subsidiary, was announced in September 2023.