MUMBAI: The Mumbai Metro Rail Corp (MMRCL) has set ₹5,173 crore as the minimum cost to develop a prime 4.2-acre land parcel in south Mumbai’s business district, Nariman Point, key terms of the global tender showed. This excludes the land acquisition cost that can be around ₹2,000 crore and the project cost includes any other associated premium that need to be paid to the authority.
The bidder developers are expected to hold a minimum net worth of ₹ 1,500 crore and execution track record of projects worth ₹6,000 crore in the last 10 years to be eligible to bid for the 90-year lease of the plot.
Any fund entity interested in the plot and the development will have to show net deployable capital worth ₹3,000 crore.
ET was the first to report last week that MMRCL planned to put this key land parcel in South Mumbai on the block through a global tender. This is for the first time a land parcel in this prime downtown planned commercial zone is being auctioned ever since it came up in the early 1970s.
As per the bid terms, the project developer is expected to hand over around 113,000 sq ft of ready commercial space in the proposed project to MMRCL. In addition to this, the project will have a development potential of nearly 1.46 million sq ft and with this, the project is estimated to hold a total revenue potential of around ₹10,000 crore depending on the development mix the project proponent envisages on this plot.
Apart from independent realty developers and financial institutions, consortiums are also allowed to bid for this project, showed the tender documents. The pre-bid meetings for the auction will be held on October 28 and bid due date is November 27.
For the payment of lease premium as consideration towards the grant of the development license and lease, the selected bidder will have the option to choose one of the payment structures including upfront payment or deferred payment.
Under the upfront payment, the selected bidder may decide to pay the entire lease premium to the authority without any interest prior to the signing of the development agreement. Alternatively, under the deferred payment mode, the selected bidder may opt to pay a minimum of 50% of this upfront, prior to the signing of the development agreement.
