Bombay Dyeing to sell 22 acres in Mumbai’s Worli to Sumitomo Realty for Rs 5,200 cr

The 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.

“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 Realty sold almost all the available inventory of ready apartments at its project in central Mumbai’s Dadar over the last one year.

In addition to elimination of debt, a part of the proceeds from this deal will be utilised to support the projects of Bombay Realty. Apart from the land being sold, the company has a land bank with development potential of 3.0-3.5 million sq ft in Dadar that can generate revenue of Rs 15,000 crore in the next few years, Anand said.

The company has so far developed nearly 2 million sq ft on its 16-acre land parcel in Dadar and is planning to develop a mix of residential and commercial properties on the balance land. It also holds smaller land parcels in Mahabaleshwar and Matheran.

Bombay Realty is also planning to evaluate other joint development and partnership opportunities to create a steady pipeline of future revenue and profits.