Bombay Dyeing to Sell 22 Acres of Worli Land to Sumitomo Group Arm for Rs 5,200 Crore

Bombay Dyeing to Sell 22 Acres of Worli Land to Sumitomo Group Arm for Rs 5,200 Crore

In a significant development, The Bombay Dyeing and Manufacturing Company Limited (BDMC) has announced its board of directors’ approval for the sale of a substantial land parcel spanning approximately 22 acres in the coveted Worli locality of Mumbai. The purchaser is Goisu Realty Private Limited, a subsidiary of Japan’s Sumitomo Realty & Development Company Limited. This transaction is slated to occur in two phases, resulting in a total consideration of approximately Rs 5,200 crore.

The successful execution of this deal is contingent upon obtaining the nod from BDMC’s shareholders, underscoring the importance of their consensus in this strategic move.

Upon receiving shareholders’ approval, BDMC is set to receive approximately Rs 4,675 crore from the buyer during Phase-I. The remaining balance, approximately Rs 525 crore, will be remitted upon the fulfillment of certain conditions by BDMC and the finalization and consummation of the definitive agreements for Phase-II.

Chairman of BDMC, Nusli Wadia, expressed his satisfaction with this significant development, stating, “I am happy to inform that BDMC is entering into agreements with Sumitomo Group for the 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.” This move holds substantial financial implications for BDMC.

Wadia continued, “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.” This strategic maneuver aligns with BDMC’s broader strategy, initiated in March 2022, to reorient the company’s trajectory towards the realty business, with an eye on future growth and profitability.

Moreover, the board of directors of BDMC has also granted in-principle approval for the development of unutilized land parcels currently owned by the company. These parcels hold significant potential, with the capacity to yield approximately 3.5 million square feet of residential and commercial property. This ambitious initiative is anticipated to generate a substantial revenue stream of about Rs 15,000 crore over the coming years.

This move by BDMC signifies a decisive step toward its evolution into a prominent player in the real estate sector, offering promise for future growth and financial robustness in the years to come.

Sources By Agencies

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