Mumbai: Bidders buy time over Rs 1,500-cr BKC plot
The Mumbai Metropolitan Region Development Authority (MMRDA) has been forced to shift the last day for bidding of the 12,486 sq m plot in G-Block of Bandra Kurla Complex to June 16, after receiving a cold response from the interested parties.
The earlier last day for bidding of the same plot was May 30.
This is the first auction of any land by the government body since 2007. Having a built-up area of 50,000 square meters, this land is one of prime locations for business in the city.
The reserve price for this land is above R1,500 crore and that is possibly why all lands put out for auction by the government are facing the same problem. Even the Dharavi Redevelopment project got a date extension, for the fifth time. The revised date for reshaping of the Asia’s largest slum is now June 23 and the estimated project cost is R21,936 crore.
“In Dharavi, builders do not wish to bid because the slums are an issue. Vacating the slums and meeting the demands of the dwellers are other hindrances. While in MMRDA, the price is just too much for a single builder. Only a consortium can manage it. Moreover, the real estate market is bad,” said a realtor from Bandra.
MMRDA maintains that around 12 bidders had come forward and shown interest in the BKC plot, including firms from Singapore.
“Many bidders are from Singapore. The reserve price is Rs 1,500 crore, so we are expecting bidders who would have consortium, for financial benefits. The real estate market is reasonable,” said Anil Wankhede, deputy metropolitan commissioner, MMRDA, adding that extension of the last date was the demand of the bidders.
The EMD (earnest money deposit) for the MMRDA project is Rs 10 crore and the tender documents were made available online from March 30. This plot will be available on a lease of 80 years, on payment of lease premium of R2.95 lakh per square meter on the built-up area for which sealed bids are invited.