Bombay Dyeing to sell 22 acres in Mumbai’s Worli to Sumitomo Realty for Rs 5,200 cr
Wadia Group entity Bombay Dyeing & Manufacturing Company (BDMC) has approved the plan to sell around 22 acres land parcel along with its associated floor space index (FSI) to a subsidiary of Japanese realty developer Sumitomo Realty & Development Company for a total of Rs 5,200 crores.
The entire transaction with Sumitomo will be completed in two phases including the first tranche of Rs 4,675 crore. The balance Rs 525 crore will be received upon completion of certain conditions by BDMC and execution and consummation of the definitive agreements for the second phase.
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Offering CollegeCourseWebsiteUniversity of Western AustraliaUWA Global MBAVisitNorthwestern UniversityKellogg Marketing Leadership Development ProgramVisitIndian School of BusinessISB Chief Digital OfficerVisitIIM KozhikodeIIMK Senior Management ProgrammeVisit“On completion of the proposed transaction, the Company will be able to record a pre-tax profit in excess of Rs 4,300 crores on account of this transaction, report a strong positive net worth and a strong treasury balance to fund the future realty projects,” said Nusli Wadia, Chairman, Wadia Group.
The group has decided to monetise the land parcel to repay the debt that currently stands at Rs 3,969 crore. It has already repaid debt worth Rs 900 crore over the last one year.
“The move to monetise this land is in line with the strategic vision provided by the board of directors in March 2022. This will enable us to eliminate our debt completely. We evaluated all available options and this was the most viable one,” Rahul Anand, CEO, Bombay Realty, the property development company of BDMC, told ET.
As part of the debt-reduction exercise, Bombay
