The Mumbai Metro Rail Corporation Ltd (MMRCL) has issued a Request for Proposal (RFP) document to develop property on the plot bearing CTS No 1987, 1988 at Nariman Point on Long-term Lease Basis. According to the document, the estimated cost of the project is Rs 5,173 crore and includes development of 12,405 sq mtr of built-up office space. The rehabilitation project will be handed over to MMRCL prior to commercial operation date (COD).
The document also states that the project includes development of built-up space on the site as permitted under applicable DCR norms subject to a maximum of 1,35,383 sq mtr.
Situated above the Vidhan Bhavan metro station next to Mantralaya on the Free Press Marg, the land parcel has development potential of 16,842 sq mtr. While the proceeds from the plot's auction will be utilised for the completion of the Mumbai metro projects, the developer is also expected to get the advantage of a single window clearance for the project from the Municipal Corporation of Greater Mumbai (MCGM) since the MMRCL has already presented the plan to the civic body.
This is for the first time that a land parcel in the most prominent address of the city will be auctioned. The company has appointed Knight Frank as advisor for the auction. While the pre-bid meeting is scheduled for October 28, 2024, the last date to submit the bid document is November 27, 2024.
The document also stated that a Special Purpose Vehicle (SPV) needs to be incorporated under the Companies Act 2013 by the selected bidder. The SPV will act as the developer/lessee as defined in the Development Agreement/ Lease Agreement respectively. While the term of the agreement is 90 years (including the construction period), the construction period has been fixed to four years from the appointed date. The bidders will also have to submit a security amount of Rs 51.73 crore in the form of an irrevocable, unconditional bank guarantee in favour of MMRCL.
According to sources, they have already held initial talks with leading global and domestic developers including the Blackstone Group, Sumitomo Corp, the Tata Group, Lodha, K Raheja Corp, Oberoi Realty etc and have got a positive response from the developers.
The plot will be open for a mixed-use development including offices, luxury residences and hospitality spaces. This will also be the first project in Mumbai to get the benefit of the state government’s formal transit-oriented development policy. The proposed development by the MMRCL will be a gamechanger for South Mumbai and the entire city. It will be among the first developments in the area to provide direct metro access, setting a new benchmark in integrated urban planning.
With the completion of key infrastructure projects including the Eastern Freeway, Atal Setu, extended Coastal Road, and the Metro will significantly enhance connectivity between Nariman Point, suburbs, Navi Mumbai and surrounding areas making it more accessible and attractive for businesses.
The improved traffic flow, reduced travel times, and the easing of congestion are expected to drive commercial activity, potentially restoring Nariman Point's prominence as a central business hub, while encouraging new investments and developments.
