Bombay Dyeing to sell 22-acres Worli land to Goisu Realty for Rs 5,200cr

In one of many greatest realty offers, the Bombay Dyeing and Manufacturing Co. Ltd. (BDMC) stated it has authorized a proposal to sell off its prime property in Worli, measuring round 22 acres, to Goisu Realty Pvt. Ltd in two phases for round Rs 5,200-crore, to repay money owed and fund future initiatives, right here on Wednesday.

BDMC Chairman Nusli Wadi stated that on completion of the transaction, the corporate will notch a pre-tax revenue of greater than Rs 4,300-crore, report a powerful optimistic internet price, wipe off all its borrowings thus saving curiosity prices and releasing the cost on encumbered belongings, pay dividend in future, and have a powerful treasury stability to fund upcoming realty initiatives.

The BDMC Board had charted a method in March 2022 to change the corporate’s trajectory envisaging deal with realty enterprise for future progress and profitability, accelerating sale of flats in Dadar areas, monetizing its land financial institution, deleveraging the corporate by retiring its borrowings and bettering credit score rankings, develop the corporate’s unutilised land parcels and discover joint growth alternatives.

“We are comfortable that BDMC was ready to generate a internet income of about Rs 1,050 crores between April 2022 and June 2023, by way of sale of the flats in Island City Centre by focussed execution, main to a discount in our borrowings by about Rs 900 Crs in the identical interval,” stated Wadia.

The firm additionally authorized the event of its vacant land parcels having a possible to create round 3.50 million sq.toes of residential-commercial properties to generated round Rs 15,000-crore income over the following few years.

The growth will probably be deliberate judiciously in phases to handle its money flows effectively and in addition consider different joint growth and partnership alternatives to create a gentle pipeline of future income and income, stated the corporate.

(With inputs from IANS)