MMRDA leases two properties in BKC to raise Rs 2,900 crore

Two plots in the Bandra-Kurla Complex have been made available for lease by the regional development agency, the Mumbai Metropolitan Development Authority, or MMRDA, with the anticipation that they will bring in about Rs 29 billion. After a Japanese company, Goisu Realty Private Ltd, won the tender for leasing two land parcels at Bandra Kurla Complex, MMRDA received Rs 20.67 billion in October 2022. The two plots, one measuring 7,071.90 square meters (C13) and the other measuring 6.096.67 square meters (C-19). Plot C-13's built-up area development potential is 45,000 square meters, whereas Plot C-19's is 40,000 square meters. The offered lease term is 80 years, and the reserve price for the built-up area is Rs. 3445 billion. A senior official said, “The reserve price is similar to one which was paid by Goisu Realty to win the bids for two plots in 2022.” MMRDA has set aside Rs 287.05 billion for spending on a variety of infrastructure projects in 2023–2024, including costs for Metro routes, the Mumbai Trans Harbor Link, the Versova–Vasai Sea Bridge, and an underground road between the Eastern Freeway and Marine Drive. The state government had given the MMRDA permission to borrow Rs 600 billion in July 2022. The government has chosen to act as guarantor for a Rs 120 billion loan in Phase I that would be used to finance infrastructure projects in the Mumbai Metropolitan Region. The MMRDA lacks the authority to levy taxes in order to raise money. The MMRDA intends to monetize its assets, particularly the metro network, and engage in land sales to increase revenue. However, it anticipates strong cash flow from a variety of sources over the following 25 years; however, officials said the Rs 600 billion in loans it has been permitted to raise will act as a buffer in case it does not receive expected funds in the following five years due to project delays and their effects on revenue inflow. The authority is optimistic that it will be able to pay back debts by collecting development fees from commercial, industrial, and residential buildings in addition to selling off property. According to officials, taxes, cess, advertising, and other fees can be used to obtain the funds required for asset operations and upkeep. See also: Brookfield leads race to acquire IL&FS group headquarters in MumbaiEFC leases 60,000 sq ft in Hyd and 32,000 sq ft office space in Mumbai