The Mumbai Metro Rail Corporation (MMRCL) has set a minimum price of Rs 51.73 billion for the development of a prime 4.2-acre land parcel at Nariman Point, South Mumbai’s business hub. This cost excludes the land acquisition, which is estimated at around Rs 20 billion, and also covers other associated premiums payable to the authorities.

To bid for the 90-year lease, developers must have a minimum net worth of Rs 15 billion and a proven track record of executing projects worth Rs 60 billion in the past decade. Interested funds must also show a net deployable capital of Rs 30 billion.

This is the first time since the early 1970s that a land parcel in this prime commercial zone is being auctioned via global tender. The developer will be required to hand over 113,000 sq ft of commercial space to MMRCL, while the plot itself offers a development potential of 1.46 million sq ft. The total revenue potential from the project is estimated to be around Rs 100 billion, depending on the development mix.

The auction will allow bids from independent real estate developers, financial institutions, and consortiums. Pre-bid meetings are scheduled for October 28, with the bid submission deadline on November 27. The successful bidder can choose to pay the lease premium either upfront or through deferred payments, with the option to pay at least 50% upfront before signing the development agreement. 

(ET)