Japanese conglomerate Sumitomo Corporation secures an 80-year lease for two prime commercial plots in Mumbai‘s Bandra Kurla Complex, emphasizing the city’s thriving real estate market.
In a significant development, the Mumbai Metropolitan Region Development Authority (MMRDA) has recently finalized an 80-year lease agreement with Japanese conglomerate Sumitomo Corporation for two commercial plots in Bandra Kurla Complex (BKC). These plots, measuring 2.94 acres in G Block, were secured by Sumitomo Corporation’s subsidiary, Goisu Realty Pvt Ltd, through a successful bid in October 2022. The transaction, valued at ₹2,067 crore, reinforces Mumbai’s position as a dynamic real estate hub.
A Strategic Location
The strategically located plots, identified as C-69C and C-69D, hold immense promise due to their proximity to the Mumbai-Ahmedabad High-Speed train and Metro rail stations. This prime positioning is expected to attract substantial attention from businesses seeking to establish a presence in this thriving business district.
The Dimensions of the Deal
Spanning over 11,885.20 square meters, these plots have been formally secured through an agreement inked on September 3. To complete the transaction, Goisu Realty paid a significant stamp duty of ₹111.61 crore, highlighting the magnitude of the deal.
A History of Investment
This isn’t Sumitomo Corporation’s first foray into Mumbai’s real estate sector. In July 2019, the conglomerate made its initial investment by winning the bid to lease a 12,486-square-meter plot (3.08 acres) from MMRDA for ₹2,238 crore. This strategic move signaled the company’s confidence in Mumbai’s growth potential and the resilience of its real estate market.
A Monumental Transaction
Dr. Sanjay Mukherjee, Metropolitan Commissioner of MMRDA, hailed the transaction as a monumental one, emphasizing Mumbai’s unwavering growth potential and the robust nature of its real estate market. The swift conclusion of this deal underscores the city’s attractiveness to global investors.
Expanding Portfolio
Sumitomo Corporation’s real estate investments in Mumbai extend beyond BKC. The company recently entered into a significant agreement with the Bombay Dyeing Group, acquiring 22 acres of the Wadia International Centre land in Worli for ₹5,200 crore. Work is already underway on the previously leased three-acre plot located next to One BKC, while plots 69C and 69D in BKC are slated to become office blocks. The Worli land is earmarked for an office-led mixed-use development, potentially incorporating office spaces, residential units, and retail establishments.
A Planning Authority’s Legacy
The MMRDA, designated as the special planning authority for the planning and development of BKC in 1977, oversees the expansive 370-hectare area.
Sumitomo Corporation’s ongoing investments in Mumbai‘s real estate market reflect the city’s enduring appeal to global businesses and investors, solidifying its reputation as a prominent economic and commercial hub.