Bombay Dyeing to sell Worli land to Goisu Realty for ₹5,200 crore
Wadia group owned Bombay Dyeing and Manufacturing Company Limited Wednesday said it has agreed to sell 22 acres in Worli to Goisu Realty Pvt for ₹5,200 crore in one of Mumbai's largest land deals to repay debt and fund future projects
Wadia group owned Bombay Dyeing and Manufacturing Company Limited (BDMC) Wednesday said it has agreed to sell 22 acres in Worli to Goisu Realty Pvt, a subsidiary of Sumitomo Realty & Development Company Limited, for ₹5,200 crore in one of Mumbai's largest land deals to repay debt and fund future projects.
The company in an exchange filing said its board of directors Wednesday approved the proposal to sell the land parcel of about 22 acres (along with the associated FSI) in Worli in 2 phases, for a total consideration of about ₹5,200 crores, subject to approval of its shareholders.
“Upon the 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 BDMC said.
The plan to monetise the land parcel has been approved with a view to deleverage and strengthen the balance sheet of the company for funding future real estate projects, the BDMC added.
Nusli Wadia, Chairman, Wadia group said, "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 ₹5,200 crores.”
“The board has also, in-principle, approved the development of the unutilized land parcels available with the company having a potential to create about 3.5 million square feet of residential/commercial property and generate a revenue of about ₹15,000 crores over the next few years. The development will be planned judiciously in phases to manage company’s cashflows efficiently. The company will also evaluate other joint development and partnership opportunities to create a steady pipeline of future revenue and profits,” the company added.
The BDMC further said on completion of the proposed transaction, the company will be able to record a pre-tax profit in excess of ₹4,300 crores and extinguish all its borrowings thereby saving interest costs and releasing the charge on encumbered assets beside paying dividend in the future.
The company shares closed 6.93% higher at ₹140.50 apiece ahead of the announcement on Wednesday.
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First Published:13 Sep 2023, 07:11 PM IST
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