Bombay Dyeing to sell 22-acre land in Mumbai's Worli

This entity is a subsidiary of Sumitomo Realty & Development Company Limited from Japan, the report said, citing a statement by the company, adding that the transaction will take place in two stages, with a total value of roughly Rs 5,200 crore.

"Upon approval of shareholders, BDMC will receive about Rs 4,675 crore from the buyer for Phase-I. 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 said in a statement.

“I am happy to inform that BDMC is entering into agreements with Sumitomo Group for 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,” said Nusli Wadia, Chairman of BDMC.

"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," Wadia added.

According to the company's statement, in March 2022, the Board of Directors of BDMC established a plan to alter the company's course, with a focus on the real estate sector for future growth and profitability. This involved expediting the sale of flats in Island City Centre (ICC), Dadar, as well as capitalizing on available land holdings, the Moneycontrol report said.

The statement also noted that the board has tentatively approved the development of unused land parcels within the company, which have the potential to yield approximately 3.5 million square feet (msq) of residential and commercial property.

This development is anticipated to generate a revenue of around Rs 15,000 crore in the coming years.