The Bombay Dyeing and Manufacturing Company Limited (BDMC) on October 16 announced that it had signed the Conveyance Deed with Goisu Realty Private Limited (a subsidiary of Sumitomo Realty & Development Company Limited) and received Rs 4,675 crore as part of the deal to sell a land parcel of about 22 acres (along with the associated Floor Space Index, or FSI) in the Worli area of Mumbai.
"The company has received the consideration of about Rs 4,675 Crores towards Phase-I and the proceeds realized shall be used for repaying loans of the Company and the balance thereof invested in approved securities for future developments," BDMC said in a regulatory filing on October 16.
The deal
It was on September 13 that BDMC announced the deal at a total worth of Rs 5,200 crore. The deal was one of the notable land deals that was reported in the Mumbai real estate market.
The company had on September 13 announced that it would receive Rs 4,675 crore in phase-1 from the buyer. "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 had announced on September 13.
Also read: Bombay Dyeing to sell 22 acres of land in Worli for Rs 5,200 crore to Sumitomo Group arm
Further, the company had on September 13 said 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-principal 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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