Century Textiles, the flagship company of the BK Birla Group is planning to invest Rs 1,000 crore to develop commercial property including hotels at its Worli mill land in Mumbai. The company is in talks with US-based Ritz Carlton to lease its property for hotel, according to a person with direct knowledge of the developments.
As per the plan, Century Textiles would pass on the management of the hotel to the international hospitality chain while retaining the ownership of the property. The company plans to raise about 80 percent or about Rs 800 crore of the planned investment through bank borrowings, while the rest would be funded through internal accruals, said R K Dalmia senior president, Century Textiles.
“We have received the necessary clearances and the first phase is expected to be completed in two years,” he said adding that Century Textiles will not opt for a joint venture or equity dilution to fund the project. In the first phase, Century Textiles will develop two commercial complexes that will be leased to banks and other companies, while in the second phase it will build high-end luxury hotels at the property. Although there is an ownership dispute for a part of the 40-acre property in Worli, the company is going ahead with commercial development of the rest of the plot.
The Wadia group had originally leased a 10-acre plot at the same property to Birlas for 999 years for textile manufacturing in 1898. Century Textiles is currently embroiled in a legal battle with the Wadias for control of this 10-acre plot.