MUMBAI: City builders hoping to bid for the 24-acre sprawl in Bandra Reclamation with a gross development value of Rs 30,000 crore-plus, have said that the eligibility norms seem “tailor-made for select few”. A city builder with several marquee projects in the suburbs said, “The financial and technical criteria defined are unreasonable as compared to the commercial terms they have proposed.”
Another builder whose representative attended the pre-meeting bid hosted by JLL, a global property consultant, appointed by MSRDC for the purpose, said, “The net worth clause had two figures – Rs 9,000 crore and Rs 15,000 crore. When we pointed it out, they said it was a typo error.”
However, an official told TOI that the scale of this project is such that the winning bidder has to establish its financial and execution capability.
“The development of the Bandra land will create a mini-township with a development potential of 45 lakh sq ft. The conditions are stringent because the developer will also have to pay Rs 8,000 crore to MSRDC over the next nine to 14 years,” he said.
Said Nishant Kabra, JLL’s head of capital markets (West & North India), ``We are extremely happy to be associated as consultants to the monetisation opportunity that MSRDC has rolled out. Given the scale, magnitude and potential of the underlying development this is historic. With the proximity of the location to BKC and Worli, this development would tremendously contribute to the real estate economy of Mumbai.’’
A developer said, ``In the real estate sector, developers execute projects via different Special Purpose Vehicles to ensure each project is distinct and accounting of such projects are managed efficiently. Imposing a financial criterion to have a net worth of Rs 15,000 crore in one single entity is like restricting this opportunity to one or two top developers. Most builders will not be able to meet the criteria of one single entity.’’
According to sources, top developers who attended the pre-bid meeting were L&T Realty, Sunteck Realty, Wadhwa Group, Adani Realty, Phoenix Realty, Oberoi Realty, K. Raheja Corp, JSW, Sahana Group, Runwal, Sattva, Godrej Properties, Mahindra Lifespaces, Lodha, Wellspun and Sumitomo. ``Several of them have requested the MSRDC board to relax the financial and technical criteria to open doors for this opportunity in the larger interest,’’ said a person who attended the meeting.