Japan's Sumitomo Acquires Bombay Dyeing's 2-Acre Worli Land for Rs 440 Crore
Sumitomo Realty & Development Company, through its subsidiary Goisu Realty, has acquired a prime 2-acre land parcel in Mumbai's Worli locality from Bombay Realty, the property development arm of Bombay Dyeing & Manufacturing Company (BDMC), for Rs 440 crore. This acquisition is part of a larger agreement made between Sumitomo and BDMC, which includes the associated floor space index (FSI). The deal is being completed in two phases, with Rs 4,675 crore already paid in the first tranche, and the remaining Rs 525 crore to be paid after meeting certain conditions.
Details of the Acquisition
The acquisition of the Worli land is significant, as it forms part of a larger transaction where Sumitomo is set to acquire a total of 22 acres of land in Worli for Rs 5,200 crore. This makes it one of the largest land transactions in India. The stamp duty payment for this deal was recorded at Rs 26.45 crore. Rahul Anand, CEO of Bombay Realty, confirmed the completion of this phase of the deal, highlighting that they have previously developed and sold a commercial building of about 3.35 lakh sq ft and sold the remaining landholdings in Worli to Sumitomo.
Sumitomo's Expansion in India
Sumitomo Corporation has been expanding its presence in India, driven by the rising demand for premium office spaces and residential developments. Recently, the company secured a 3-acre land parcel in Mumbai’s Bandra-Kurla Complex (BKC) through an 80-year lease for over Rs 2,067 crore, indicating its long-term commitment to the Indian real estate market. As one of Japan's leading real estate developers, Sumitomo Realty & Development is leveraging its expertise in infrastructure and sustainable development to capitalize on India's rapid urbanization and economic growth.
Market Implications for Worli
The acquisition of land in Worli by a major international player like Sumitomo underscores the growing appeal of this locality for global investors. Currently, Worli has 720 active sale listings on our platform, with a median asking rate of about ₹64,500 per sq ft carpet. This reflects the demand for both commercial and residential properties in the area, making it an attractive option for buyers and investors alike.
Practical Takeaway
This acquisition signals a robust interest in the Worli locality, which may lead to increased property values and development activities in the area. For potential buyers and investors, this could be an opportune moment to explore options in Worli, given the ongoing developments and the presence of established players in the market.