BMC to rent land from Valor Estate Limited

Brihanmumbai Municipal Corporation ("BMC/Licensee") had invited tenders for hiring of land parcels for setting up casting yards and allied works use for its various vital projects. Mira Real Estate Developers, ("Firm/Licensor/Mira"), a partnership firm in which the Company/its WOS hold 100 % share in profit/loss, is owner of 254.99 Acres of Land adjoining Mira Road Railway Station on the Western side. The said land is vacant and un-developed. From the total land holding of 254.99 Acres, Land admeasuring 186.52 Acres was offered in the aforesaid tender. The tender was opened on 22/02/2024 and thereafter evaluated by the BMC after due diligence, the Letter of Acceptance (LOA) was issued by the BMC on 11/03/2024 in favor of Firm, for renting out approx. 186.52 acres of land parcels owned by the Firm. Under this tender, land admeasuring 186.52 Acres (7,54,859.64 Sq. Mtrs) shall be temporarily handed over to the BMC on a Leave and License for a duration of 3 years (can be further extended by 2 years) at a license fee of approx. Rs. 248 Cr average per annum (p.a.) over the duration of 5 years.

As per the terms of the said LOA, Mira is expected to receive an average of Rs. 248 Crores p.a. as license fee (including considering yearly escalation) for renting out the Firm's land as mentioned above with a lock in period of 3 years, which can be extended for another period of 2 years. As per the LOA, the license fee rental has to be paid on basis by Quarterly basis by the BMC to Mira.

The Letter of Award is subject to signing of a formal Leave & License Agreement and other terms and conditions as laid down in the tender documents.

Overall the construction of the coastal road (north) which provides direct connectivity to the Mira Land will reduce the travel time from the current 90 minutes to less than 35 minutes from Nariman Point and 20 minutes from Bandra. The Mira land which is largely situated in the residential zone, has over 50 million sq feet of development potential which is expected to be undertaken for development of an integrated township post completion of the infrastructure linking the Mira Land. The current residential capital value in the area is approx Rs 20,000/- per sq feet carpet area.

Shares of D B Realty Limited was last trading in BSE at Rs. 249.70 as compared to the previous close of Rs. 267.45. The total number of shares traded during the day was 419994 in over 5336 trades.

The stock hit an intraday high of Rs. 268.05 and intraday low of 242.15. The net turnover during the day was Rs. 106885817.00.

Source : Equity Bulls

Keywords

ValorEstate INE879I01012 Realty BMC LandRent