Mumbai: Reserve Bank of India inks major Nariman Point land deal for Rs 3,472 crore

The Reserve Bank of India's Fort headquarters in Mumbai

The Reserve Bank of India has completed the purchase of a 4.2 acre land parcel at south Mumbai's commercial Nariman Point neighbourhood for a consideration of around Rs 3,472 crore, according to property registration documents accessed by CRE Matrix. This purchase, according to property experts, is one of the largest in the history of Mumbai, at a price of more than Rs 800 crore per acre.

The seller was the Mumbai Metro Railway Corporation Ltd (MMRCL), which is developing the Aqua Line of the Mumbai Metro, with the land, one of the rare open land parcels in the area, being located above the Vidhan Bhavan metro station. The station is set to open in the coming months as part of the final phase of the Aqua Line. The central bank also paid a stamp duty of Rs 208 crore for the transaction.

MMRCL had originally planned to auction the plot, which has a development potential of around 1.6 million square feet, according to property experts, as the allowable floor-space index for the project is higher due to the transit-oriented development (TOD) related regulations. The agency had even appointed Knight Frank India to conduct the sale process, with multiple large developers and private equity funds evincing interest in the land parcel.

However, MMRCL decided to scrap the sale process once the central bank expressed interest to buy the land parcel. RBI has its headquarters nearby at Fort, and also has offices elsewhere in the Mumbai metropolitan region, such as at Bandra Kurla Complex, and CBD Belapur in Navi Mumbai. It also has residential facilities spread across the city for staff accommodation.

Moneycontrol has written to RBI for comment on the matter, and the story will be updated if any responses are received.

According to a close watcher of the central bank, the land buy will help the RBI to consolidate their facilities in the city.

"As RBI’s operations grow and they are spread out across the city, such plots enable RBI to consolidate their offices and also plan for future space needs. A buy like this is perfect for both local government as it brings in a strong buyer who can foot the bill, and for RBI as it enables streaming of operations," the observer said.