In one of the biggest deals in the recent past, Japan's Sumitomo through its subsidiary Goisu Realty Private Limited has won the auction for leasing two land parcels in India's costliest commercial district at Bandra Kurla Complex (BKC) in Mumbai, confirmed Metropolitan Region Development Authority (MMRDA).
The land parcels will be leased for 80 years due to which the MMRDA which is the special planning authority (SPA) of BKC will earn Rs 2,067 crore.
The two plots include one measuring 6,077 sq m with a base price of Rs 3.44 lakh per sq m in the G Block of BKC, followed by an adjacent plot measuring 5,807 sq m with the same base price of Rs 3.44 lakh per sq m.
SVR Srinivas, Metropolitan Commissioner of MMRDA confirmed to Moneycontrol that the deal in BKC is one of the biggest commercial deals in Mumbai in the last three years.
He said, "Japan's Sumitomo through its subsidiary Goisu Realty Private Limited won the bids as they have offered meeting the criteria of the minimum base price. They were the single bidder, and we will get revenue of ₹ 2,067 crore which means ₹ 1,033 crore for each of the two land parcels. The winning company will be free to construct real estate on the same."
He added, "Earlier in 2019, also the same company had won the bid for a land parcel. We will now put up their file for approval and later they can add up to around 60,000 square meters of office space in BKC."
The BKC is one of the costliest commercial districts in India. The per sq ft rate here goes even up to Rs 1 lakh in rare cases from as low as Rs 20,000 per sq ft. It houses headquarters of several companies like the National Stock Exchange, Bank of Baroda, Indian Oil, Reserve Bank of India, and the US Embassy.
In the near future, the BKC will also accommodate a terminal for the Mumbai-Ahmedabad bullet train corridor and the Maharashtra government is also going to construct International Financial Service Centre (IFSC) at BKC.
Also read: Apple India Private Limited renews lease for three floors in Mumbai's BKC for five years
Meanwhile, the Maharashtra government last month formed a seven-member high-power committee, consisting of Indian Administrative Service (IAS) officers from departments of urban development, finance, and planning to study the optimisation of the premium paid by developers for additional Floor Space Index (FSI) in the Bandra-Kurla Complex (BKC) in Mumbai.
The committee will study and suggest ways by which land premium, which is currently levied can be optimised, for additional Floor Space Index (FSI). The base FSI currently granted in BKC is 4.
Also read: Avendus Capital leases four floors in Mumbai’s BKC for Rs 2.4 crore per month for five years
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