Mumbai-based DB Realty on Monday announced that it has received a letter of acceptance (LOA) from Brihanmumbai Municipal Corporation (BMC) and that it has handed over unused land of 186.52 acres in Mira Road to BMC. The land is temporarily handed over to the BMC on a leave and license for a duration of 3 years (which can be further extended by 2 years) at a license fee of approximately Rs 248 crore average per annum over the duration of 5 years, the company said in a regulatory filing.
“Mira Real Estate Developers, a partnership firm in which the company holds 100 per cent share in profit/loss, is owner of 254.99 acres of land adjoining Mira Road Railway Station on the Western side. The said land is vacant and undeveloped. From the total land holding of 254.99 acres, land admeasuring 186.52 acres was offered in the aforesaid tender. The tender was opened on 22/02/2024 and thereafter evaluated by the BMC after due diligence, the Letter of Acceptance (LOA) was issued by the BMC on 11/03/2024 in favour of the firm, for renting out approx. 186.52 acres of land parcels owned by the Firm,” it said in the exchange filing.
As per the terms of the said LOA, Mira Real Estate Developers is expected to receive an average of Rs 248 crore per annum as license fee (including considering yearly escalation) for renting out the firm’s land with a lock in period of 3 years. As per the LOA, the license fee rental has to be paid on a quarterly basis by the BMC to Mira.
Overall, it stated, the construction of the coastal road (north) which provides direct connectivity to the Mira Land will reduce the travel time from the current 90 minutes to less than 35 minutes from Nariman Point and 20 minutes from Bandra. The Mira land which is largely situated in the residential zone, has over 50 million sqft of development potential which is expected to be undertaken for development of an integrated township post completion of the infrastructure linking the Mira Land. The current residential capital value in the area is approx Rs 20,000 per sqft carpet area.