Report: Bombay Dyeing would sell a portion of Mumbai land to a Japanese group for 5,000 crore.
Bombay Dyeing is reportedly in discussions to sell a portion of its land in Worli, Mumbai, at an estimated valuation of ₹5,000 crore. A prominent Japanese conglomerate is said to be leading the race in acquiring the land, which has a substantial development potential of 2 million square feet for commercial purposes, according to the Business Standard that cited a source within the real estate industry.
The proposed sale of the land would enable Bombay Dyeing, a diversified company engaged in real estate, polyester, and textiles, to address its existing debt and support corporate objectives. As of the financial year ending March 2023 (FY23), the company reported a net debt of ₹3,456 crore on revenues of ₹2,674 crore. During the same period, it incurred a loss of ₹517 crore.
It should be noted that the Wadia group possesses an extensive land portfolio of 700 acres across various companies and charitable trusts in and around Mumbai. However, a senior official from Bombay Dyeing clarified that no decision has been made yet regarding the potential land sale, as per the publication.
On July 5, Bombay Dyeing shares closed at ₹122.90 per share, representing a notable increase of 11.52%. This development comes amidst the recovery of real estate prices in central Mumbai, bolstered by ongoing infrastructure projects such as the Mumbai Metro, which will link South Mumbai to the airports, and the progress of the transharbour sea link.
The sale of the Worli land parcel could be a strategic move for Bombay Dyeing, as it aims to optimise its assets and enhance its financial position. The participation of a prominent Japanese conglomerate underscores the attractiveness and potential of the commercial real estate market in Mumbai.
