Inside the ₹5,200cr deal: Bombay Dyeing to sell Worli land to Goisu Realty
Bombay Dyeing and Manufacturing Company Limited (BDMC) has approved a Rs. 5,200 Cr deal to sell its 22-acre land parcel in Worli, Mumbai. The board met on September 13, 2023, and finalized the deal with Goisu Realty Private Limited, a subsidiary of Sumitomo Realty & Development Company Limited. The sale will take place in two phases, with the first phase bringing in approximately Rs. 4,675 Crs to BDMC upon shareholder approval.
What This Deal Means for Bombay Dyeing
Nusli Wadia, the Chairman of BDMC, stated, “I am happy to inform that BDMC is entering into agreements with Sumitomo group for the 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.” The transaction will lead to multiple financial benefits for the company, including a pre-tax profit exceeding Rs. 4,300 Crs, the eradication of all borrowings, and the capacity to pay dividends in the future.
Company’s Long-term Strategy Revealed
The board had earlier set a strategy in March 2022, focusing on accelerating realty business growth, selling flats in the Island City Center, Dadar, and improving credit ratings. “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, leading to a reduction in the Company’s borrowings by about Rs. 900 Crs in the same period,” Wadia added.
Future Development Plans
In addition to the Worli deal, the board also greenlit the development of unutilized land parcels, expected to create 3.5 million square feet of residential and commercial property. This could generate revenue of about Rs. 15,000 Crs over the coming years. “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,” Wadia concluded.