A lacklustre real estate market seems to have hit the Bandra-Kurla Complex (BKC) — one of the world’s top 10 business districts — with three plots here failing to attract any bidder. The Mumbai Metropolitian Region Development Authority (MMRDA), which on March 8 had floated a tender to lease the three plots, has now extended the tender date from May 14 to June 30.
According to the tender document, the first plot has an area of 12,486 square metre and a permissible built up area or floor area ratio of 65,000 sq m; the second has an area of 3,000 sq m with maximum floor space index (FSI) of 12,000 sq m; and third plot with an area of 2,961 sq m and total built up area will be 12,000 sq m.
The FSI is the ratio of the plot size on which the construction happens and the total permissible coverage area.
A senior officer from the MMRDA said in a pre-bid meeting, which was held on April 25, no bidders had shown interest in the three plots. “That is why tender has been extended till June 30,” he said.
Last year, when the 12,486 sq m plot was put on a lease, the permissible built up area was 50,000 sq m due to restrictions imposed by the Airports Authority of India. This time, however, the permissible built up area was increased to 65,000 square metre, yet no builders expressed any interest.
An MMRDA officer, without wishing to be named, said looking at the current real estate situation, the development authority had decided not to sell its plots as builders were not offering good value of the land. The authority, instead, decided to lease its land. The officer said the revenue generated from these plots were to be utilised for the city’s big infrastructure projects.
Due to a slowdown in the realty sector, the MMRDA had also amended its policy for the sale of its land bank in BKC. Instead of reserving a plot for solely commercial or residential purposes, the authority in December last year had modified land usage and opted for mixed use at all its plots in the financial district.
Accordingly, plots allotted or reserved for commercial activity in BKC’s G Block, which has evolved into a top-end business and financial hub with corporate offices of top business houses, international banks, financial institutions and diamond merchants among others, were now permitted to utilise up to 30 per cent of the permissible built-up area for residential construction.
From these three lands, the MMRDA was aiming to generate a revenue of Rs 3,000 crore, which was supposed to be used in big infrastructure projects, like Metro corridors. The MMRDA has reserved a rate of Rs 3.44 lakh per sq m on built-up area. All the three plots have a total built-up area of 89,000 square metre. Currently, the MMRDA is handling infrastructure projects of nearly Rs 1 lakh crore.