Commenting on the proposed transaction, Mr. Nusli Wadia, Chairman, 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 Rs. 5,200 Crs.

On completion of the proposed transaction, the Company will be able to:

• Record a pre-tax profit in excess of Rs. 4,300 Crs on account of this transaction.
• Report a strong positive net worth.
• Extinguish all its borrowings thereby saving interest costs and releasing the charge on encumbered assets.
• Pay dividend in future.
• Have a strong Treasury balance to fund the future realty projects.

The Board of Directors of BDMC had charted out a Strategy in March 2022 to change the company’s trajectory which envisaged:

• Focusing on realty business for future growth and profitability.
• Accelerating sale of flats in Island City Center, Dadar [ICC].
• Monetizing its land bank.
• Deleveraging the Company by retiring its borrowings & improving credit rating.
• Developing the unutilized land parcels of the Company.
• Exploring joint development opportunities.

We are happy to report that BDMC was able to generate a Net Revenue of about Rs. 1,050 Crs between April 2022 and June 2023, through sale of the flats in ICC by focused execution, leading to a reduction in the Company’s borrowings by about Rs. 900 Crs in the same period.

Further, with a view to deleverage and strengthen the Balance sheet of the Company for funding future real estate projects, the Board decided to monetize BDMC’s land parcel at Worli, Mumbai, after evaluating various other options.

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 Rs. 15,000 Crs 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.

Considering the scale and impact this transaction will have on the future prospects of the Company, we seek support of all the stakeholders to ensure that the Company delivers sustainable shareholder value as we move forward.”

Also Read: Birla Estates Acquires 10 Acre Land Parcel in Bengaluru

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By Varun Singh

MHADA has decided to take back the plots that it had allotted to several government bodies and individuals. These plots were allotted almost 30 years ago.

MHADA had undertaken a project under Bombay Urban Development Project (BUDP) with the assistance of the World Bank in Mumbai suburbs during the period of 1985-1994.

The areas include Gorai-Borivali, Charkop-Kandivali, Malwani-Malad, Mulund, and Versova.

On Tuesday, Vinod Ghosalkar, Chairman, Mumbai Building Repair and Reconstruction Board, MHADA said, “The Chief Officer of Mumbai Board of MHADA has informed that the plots that were allotted to several central government bodies and also to individuals, under the World Bank project shall be taken back.”

Ghosalkar said those plots where no work has commenced and are lying vacant for the last three decades and either encroachment has happened and some plots where people have started dumping garbage such plots would be taken back.

According to Ghosalkar there are hundreds of such plots and especially in the western suburbs of Mumbai that MHADA shall be taking over some are huge and some plots are smaller ones.

All these plots were meant for housing and according to Ghosalkar, when the authority will take these plots back there may be some good news for common Mumbaikars.

These plots may be brought into MHADA’s lottery scheme where they can be made available to the common public.

MHADA for the last two years hasn’t come up with a single lottery for Mumbai homes. The last lottery that MHADA’s Mumbai Board held was way back in 2019 for 217 homes.

Most homes that Mumbai Board had put in the lottery was way back in 2011, where it had put 4034 homes for common citizens.

Also Read: Diwali Dhamaka Lottery Of 4000 MHADA Homes

The post MHADA plans to take back 100’s of its Mumbai plots appeared first on Square Feat India.