Kickstarting the process of monetising real estate assets around the Mumbai airport, the GVK-led Mumbai International Airport (MIAL) has called for request for qualification (RFQ) for development of hotel projects on four land parcels in Sahar and Andheri.
?The land parcels referred in the RFQ are vacant and are in absolute and complete
possession of MIAL. There is no encumbrance / slums on these land parcels and nor are these under any kind of litigation,? the company said in an email response.
The clarification assumes importance in light of the ongoing legal battle between MIAL and Housing Development and Infrastructure (HDIL) over the slum rehabilitation project of the Mumbai airport. HDIL is presently contesting MIAL?s decision to terminate the slum rehabilitation contract in February this year. HDIL was awarded the contract in 2007.
Of the 1,700 acres available for developing the airport and commercial amenities, 170 acres can be used by MIAL for commercial development. Of this, sources say, 105 acres or about 60% is still under slums, but the remaining 65 acres is available for development.
According to real estate industry sources, the four parcels being monetised presently would account for the first 20-25 acres earmarked for commercial development.
The project called the GVK SkyCity will have about 20 million square feet of hospitality, office and retail development, sources said. The funds garnered through this development will be used to cross-subsidise the airport?s aeronautical revenues. As on March 31, 2013, GVK?s borrowings were at R17,000 crore.
Global property consultant, Jones Lang LaSalle is believed to be handling the sales.
GVK refused to comment on the size of the land being put out for development in phase I, or the amount to be realised through the SkyCity project.
MIAL is expected to fetch a total of about R1,000 crore through the entire commercial development, say industry sources. However, part of the monetisation plan may be delayed due to the ongoing dispute with HDIL over the slum rehabilitation project.
