Raheja, Phoenix Mills, others vie for 2 prime MIAL-owned plots worth up to INR 4,500 crore

GVK-owned Mumbai International Airport Ltd (MIAL)’s two prime land plots worth up to INR 44,500 crore have drawn interest from several global investors and domestic commercial developers, said two people aware of the matter.  More than 30 property developers, including K. Raheja Corp, Phoenix Mills Ltd, and Xander-backed Virtuous Retail South Asia Ltd (YRSA), have submitted expressions of interest (Eol) to develop the two land plots owned by MI AL, said one of the two people cited above.  The two land parcels, located near Mumbai’s domestic airport, are around 17 acre and 6 acre. With a total development potential of around 5 million sq. ft, both the land plots could be worth INR 44,000-4,500 crore at the current market rate, this person said.

“The process to monetise the land was started last month. Expressions of interest were invited from potential developers to develop the two land plots. Several developers including global investors and developers have shown interest,” said the second person.  MIAL will offer the land for development on a long-term lease basis. Both the plots are strategically situated, with one of them located right in front of the airport where three metro line constructions are underway and the other on the old Andheri-Kurla road towards the airport, according to the person mentioned above.  Property consultant CBRE has been hired to manage the bidding process.  Spokespersons of both GVK group and CBRE did not respond to emails seeking comment.

Phoenix Mills Ltd has declined to comment, while queries sent to K Raheja Corp and YRSA remain unanswered till the time of going to press.  “We may start preparing our proposals and evaluate on the commercials for the development of the plots by early next year,” said an official with a real estate firm that has shown interest in the two land parcels.  The two plots would be developed into mixed-use projects com-prising mostly commercial office buildings and large retail spaces, the official said.  GVK Airport Holdings Ltd, the holding company of GVK group’s airport business, has been aiming to raise funds through stake sale and land monetisation to pare its debt and fund its expansion plans.

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