In a significant move aimed at bolstering infrastructure development in Mumbai, DB Realty, a leading real estate company, has leased 186 acres of land to the Brihanmumbai Municipal Corporation (BMC) for a whopping annual rent of Rs 248 crore.
The land, strategically located in Mira Road, has been leased to facilitate the BMC's ambitious coastal road project. This project necessitates ample space for setting up casting yards and other allied works crucial for its execution.
According to a regulatory filing by DB Realty on March 11, the land in question is owned by Mira Real Estate Developers, a partnership firm where the company or its wholly-owned subsidiaries hold a 100% stake in profit/loss. This vast expanse of land, totaling 254.99 acres, lies adjacent to Mira Road railway station on the western side and is currently vacant and undeveloped.
Under the terms of the lease agreement, the BMC will be granted temporary access to 186.52 acres of land on a Leave and License basis for an initial period of three years, with the option to extend it for up to five years. The license fee for this tenure averages around Rs 248 crore per annum over five years, as disclosed in the regulatory filing.
Furthermore, the Mira land, primarily situated in a residential zone, holds immense development potential, boasting over 50 million square feet of potential construction area. DB Realty envisions the creation of an integrated township upon completion of infrastructure development in the area. The current residential capital value in this locality is estimated to be approximately Rs 20,000 per square foot on carpet.
In a separate development, DB Realty announced on March 9 that it had officially changed its name to Valor Estate Limited. The change of name was approved by the Central Processing Centre of the Ministry of Corporate Affairs, effective from March 8, 2024. The company assured stakeholders that necessary amendments reflecting the new name would be made across all official records and documents in due course.
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