Bombay Dyeing may sell Worli land parcel at Rs 5,000 cr valuation

Japanese conglomerate leads race among the bidders for to land which has a development potential of 2 mn sq ft for commercial purposes, says source

Wadia group firm Bombay Dyeing is in talks to sell a part of its land parcel in central Mumbai’s Worli at a valuation of Rs. 5,000 crore.
 

A Japanese conglomerate is leading the race to acquire the land, which has a development potential of 2 million square feet for commercial purposes, said a source in the real estate industry. Bombay Dyeing, which has  presence in real estate, polyester, and textiles, will use the proceeds to reduce debt and for corporate purposes.
 

The company reported a net debt of Rs. 3,456 crore for the financial year ended March 2023 (FY23) on revenues of Rs. 2,674 crore. It made a loss of Rs. 517 crore in the same period.
 

The Wadia group owns 700 acres of land in and around Mumbai, housed under various companies and charitable trusts. A top official of Bombay Dyeing said no decision had been taken so far about the land sale. Bombay Dyeing shares closed at Rs. 122.90 apiece on Wednesday, up 11.52 per cent.
 

Real estate prices in central Mumbai have recovered after the pandemic and construction of key infrastructure projects, like Mumbai Metro connecting South Mumbai to airports and trans-harbour sea link, are nearing completion.

“The final figure for the (Bombay Dyeing) land sale is likely to be higher considering demand for land is high but there is no supply,” said a real estate analyst.
 

Almost 12,000 redevelopment projects are under construction in land-scarce Mumbai, the analyst said. Among India’s top cities, Mumbai in FY23 reported the highest real estate transactions with 25 land deals accounting for over 267 acres.
 

Mumbai was followed by the Delhi-NCR region with 23 land deals of around 274 acres. In terms of total land area transacted in top seven cities, Chennai topped with approximately 292 acres changing hands in nine separate deals, according to data collated by real estate firm ANAROCK.
 

“With land becoming scarcer amid the unfettered real estate development boom, leading players are pulling out all the stops to secure the best land parcels in key locations,” said Anuj Puri, chairman of ANAROCK.

“In FY23, the number of land deals has risen significantly — from 44 in FY22 to 87 in FY23. However, in terms of area, the increase was just 13 per cent — implying that several smaller plots were closed in FY23,” he said.

Most land acquisitions in Indian cities are for residential projects that have grown sharply in demand after the pandemic compared to the commercial properties.