Mumbai: On September 13, The Bombay Dyeing and Manufacturing Company Limited (BDMC) announced that they have approved the proposal to sell a land parcel of approximately 22 acres in the Worli area of Mumbai to Goisu Realty Private Limited, a subsidiary of Sumitomo Realty & Development Company Limited of Japan. The sale will be in two phases and the total consideration will be around Rs 5,200 crore. However, this transaction is subject to the approval of BDMC shareholders.
If approved, BDMC will receive about Rs 4,675 crore for Phase-I. The remaining amount of about Rs 525 crore will come upon completion of specific conditions by BDMC and execution & consummation of the definitive agreements thereto for Phase- II.
The Chairman of BDMC, Nusli Wadia, expressed his happiness with the agreement with Sumitomo Group for the sale of about 22 acres of land in Worli, Mumbai. The company will be able to record a pre-tax profit of over 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.
The board of directors of BDMC had charted out a strategy in March 2022 to change the company’s trajectory by focusing on the realty business for future growth and profitability, accelerating the sale of flats in Island City Centre (ICC), Dadar, monetising land banks, etc. They have also given in-principle approval for the development of unutilised land parcels available with the company having the potential to create about 3.5 million square feet of residential and commercial property and generate a revenue of about Rs 15,000 crore over the next few years.
