Sumitomo Corporation had won the bid for the two neighbouring plots in 2019 but the deal has been finalised now.

Goisu Realty Private Limited, a subsidiary of Sumitomo Realty and Development Company Limited of Japan, has leased two adjoining plots of almost 3 acres in total in Mumbai’s prime business district Bandra-Kurla Complex (BKC) from the Mumbai Metropolitan Region Development Authority (MMRDA) for 80 years for over Rs 2,067 crore. This deal along with other transactions entered into by Goisu Realty in Mumbai strengthens the financial capital’s position as the country’s hub for global financial/banking services and private equity firms, said real estate consultants.

“This is an affirmation of Sumitomo’s commitment to India and the financial capital Mumbai. Sumitomo has clearly identified Mumbai as one of the prime destinations within their global office portfolio. Given the prominence of BKC, India’s top financial district, the Japanese firm sees Mumbai as a strategic investment. Overall, there are four commercial investments that the Japanese conglomerate has made in Mumbai—three plots in BKC from MMRDA and one in Worli (in a deal with Wadia Group flagship Bombay Dyeing). The BKC deal cumulatively will be around 2 million sq ft of Grade A office development across two towers (once the structures are complete) and the Worli site has the potential of over 6 million sq ft of commercial footprint,” Karan Singh Sodi, senior managing director at property consulting firm JLL India, told Moneycontrol.

These deals further strengthen Mumbai’s position as the financial capital and with planned infrastructure upgrades, attracting talent from other cities will be easier. Moreover, this deal will encourage other Japanese firms to take up commercial space in these locations, he added.

An email has been sent to Sumitomo Realty & Development.

The company paid Rs 111 crore as stamp duty for registering the deal that was sealed on September 3, documents accessed by CRE Matrix showed.

Sumitomo Corporation had won the bid for the two neighbouring plots in 2019 but the deal has been finalised now. It will be permitted to construct an area of 65,000 square metres on the 12,486-sq m plot (a little over 3 acres) at BKC.

Bombay Dyeing had on September 13 announced that its board of directors had approved a proposal to sell a land parcel of about 22 acres (along with the associated floor space Index, or FSI, which is the proportion of the land area to the permissible area of the building on it) in the Worli area of Mumbai to Goisu in two phases, for a total consideration of about Rs 5,200 crore.

In a statement, Bombay Dyeing had said the transaction is subject to the approval of its shareholders. “Upon approval of shareholders, BDMC (Bombay Dyeing and Manufacturing Company) will receive about Rs 4,675 crore from the buyer for Phase-I. The balance amount of about Rs 525 crore will be received upon completion of certain conditions by BDMC and execution & consummation of the definitive agreements thereto for Phase- II,” the company said in a statement.

“I am happy to inform that BDMC is entering into agreements with the Sumitomo Group for the sale of about 22 acres of land (along with the associated FSI) in Worli, Mumbai, for a total consideration of about Rs 5,200 crore,” Nusli Wadia, chairman of BDMC had said.

Last year, a report published in Nikkei had said that Japan’s Sumitomo Realty & Development will invest 500 billion yen ($3.58 billion) in office building projects in India, expanding in what is projected to become the world’s most populous nation mere months from now.

The real estate arm of Sumitomo Corporation, which had earlier acquired another BKC site, plans to construct two buildings with a total floor area of about 130,000 sq m each on the two sites. Completion is expected between fiscal 2025 and 2027, the report had said.

Sumitomo Corporation was established in 1919 and is spread across Asia, Europe, America and Africa. It deals in infrastructure, realty, media, metal products, transportation and construction systems, minerals, energy and chemicals.

A report by JLL India has said that real estate developers had acquired a record 2,181 acres of land between January 2022 and May 2023. This has an estimated development potential of around 209 million square feet. Valued at over Rs 26,000 crore, the acquisition comprised 104 separate land deals. About 84 percent of the 2,181 acres or around 1,822 acres was for proposed residential developments.