MUMBAI: The Mumbai Metro Rail Corporation (MMRCL) has temporarily shelved its plan to lease a 4.2-acre land parcel in Nariman Point for property development. The plot, earlier used as office space by various political parties, was slated for monetisation through a long-term lease agreement.
MMRCL issued a request for proposal (RFP) for the development of the land on Oct 3, 2024. However, a public notice issued on Saturday announced its withdrawal.
While MMRCL officials declined to comment on the reason for the decision, sources indicated that the RFP might be reissued in the coming weeks after resolving certain “technical issues”.
The corporation aimed to generate a minimum of Rs 5,173 crore from the lease of the plot, which has a prime location and significant development potential. The 4.2-acre land parcel, with a buildable area of 16 lakh sq ft, includes 1,13,500 sqft earmarked for rehabilitation purpose.
The land, formerly occupied by offices of political parties like Congress, Nationalist Congress Party, Shiv Sena, and others, was vacated and refurbished to accommodate Vidhan Bhavan metro station as part of the 33-km Colaba-Seepz Metro Line 3 project. This plot was allocated to MMRCL in 2017 as compensation for the decision to scrap commercial development on a portion of Aarey Car Depot land following activists’ opposition.
The now-withdrawn RFP marked the first instance of a prime downtown Nariman Point plot being put up for auction since the area’s development in the early 1970s. The plot has immense potential for mixed-use development, including office spaces, luxury residences, and hospitality projects.
Prominent real estate players such as Blackstone Group, Oberoi Realty, RMZ Group, and Tata Group expressed interest in bidding for the lease. MMRCL also appointed Knight Frank India as the transaction advisor for the auction.
Proceeds from the lease were intended to fund ongoing metro projects and repay loans, including those from Japan International Cooperation Agency.
The RFP also allowed participation by foreign and alternative investment funds, reflecting MMRCL’s intent to attract global bidders.
MMRCL is expected to revisit the monetisation plan once underlying issues are addressed, potentially leading to a renewed RFP announcement in the near future.
