By Accommodation Times News Services
In the end of last month, Mumbai saw its largest land deal ever. Three different deals had been sealed for a whopping amount Rs 2,719 crore. The amount was almost 180% higher than the reserve price set by MMRDA, which auctioned the plots.
Reliance Industries, Wadhawa Builders and TCG Urban Infrastructure Holding Ltd were the successful bidders, who grabbed 75,350 sq mt BKC land. Apart from those three, Satra Properties ( India) Ltd, JSW Steel Ltd, DLF Commercial Developers Ltd, Rolta India Ltd , Parinee Developer Properties Pvt. Ltd, Suzlon energy Ltd, Man Industries (I) Ltd were in the race.
Wadhawa Builders and TCG won two plots, which were allocated for commercial and office use . Wadhawa Builders won plot no C-70 ( G- Block, BKC , plot area was 7107 sq m and permissible BUA : 16500) for Rs 831 crore or Rs 5.4 lac per meter. For this plot , JSW Steel Ltd and Satra Properties (India) Ltd were the 2nd and the 3rd bidders respectively. JSW Steel Ltd had valued Rs 742 crore or Rs 4.5 lac per sq. meter and Satra Properties quoted Rs 666 crore for the same plot. MMRDA put Rs 1,53,054 per sq m as a reserve price for three plots . TCG won another commercial plot ( Plot No C-54&55 , G- block , Plot Area: 8076.38 sq m , Permissible BUA: 28300 sq m) for Rs 3.67 lakh per sq mt, valued at Rs 1,041 crore. While Satra Properties and JSW quoted 1,011 crore ( 3.57 lac per sq m ) and 943 crore ( 3.33 lac per sq m ) respectively.
RIL won the bid for the third plot (Plot No C-66 G- Block, Plot Area : 10183.18 sq. m, Permissible BUA: 30550 sq m ) , which is reserved for a multi-storeyed car parking and commercial complex. Reliance Industries quoted Rs 3.4 lakh per sq mt for the third plot, the total amount being Rs 941 crore. For this plot Tishman Sapyer India Master Fund valued 858 crore ( 2.81 lac per sq m ) and Parinee developer quoted 781 crore ( 2.55 lac per sq m).
G-Block of BKC has now emerged as the financial hub of Mumbai due to the availability of modern infrastructure, locational advantage and the strategic planning and is well on its way to become a truly international finance and business hub. A number of front line financial institutions, banks, private insurance companies and leading business houses have established their corporate headquarters in the IFBC. ICICI, IL&FS, UTI, NABARD, National Stock Exchange (NSE), CITI Bank, Bank of India, Bank of Baroda, Wockhard to name a few. Other banks such as IDBI, State Bank of India, Punjab National Bank, Dena Bank, SIDBI and Canara Bank are in the process of establishing their offices in IFBC.
The rates in BKC have been increasing rapidly ( see rate table). All big real estate players have been showing keen interest in BKC. Even this time eminent real estate developers had bid for enormous amount for those plots ( see Table 2,3 and 4). MMRDA allocated two FSI for all three plot. What this means is that the developers have got 50% rate on quoted value. The rates in BKC have been increased 300% to 400% in just one year. Even government is also interested in higher rates. For these three plots , they had reserved a price of Rs1,53,054 per sq. m. Looks like the government is also striking the iron when it’s hot as big developers are willing to pay hefty amounts to grab a piece of it in BKC. But will the mid and small-cap players can reap some benefit in BKC? Thats the question which only MMRDA can answer.
Land rate history of BKC
Land prices have appreciated since the early 80’s.
Year Price (Rs/sq m)