Re­liance Realty Gets Maha Govt Nod For 30M-SqFt Project

The Times of India (New Delhi edition) - - TIMES GLOBAL - TIMES NEWS NET­WORK

Mum­bai: Anil Am­bani’s Re­liance Realty has re­ceived the Ma­ha­rash­tra gov­ern­ment’s fi­nal clear­ance to de­velop a 30-mil­lion­sqft smart fin­tech hub at Dhirub­hai Am­bani Knowl­edge City (DAKC), lo­cated in Navi Mum­bai. The pro­posed leasable or saleable devel­op­ment will be dou­ble the size of the com­mer­cial of­fice space in Mum­bai’s Ban­dra Kurla Com­plex (BKC), es­ti­mated at 15 mil­lion sqft cur­rently.

A Re­liance Group spokesper­son told TOI that it re­ceived the state gov­ern­ment ap­proval on Fe­bru­ary 8.

DAKC is a 132-acre cam­pus

The new DAKC project would be built in phases

The govt has asked Re­liance to com­plete 15m sqft in the next 10 years

The project would host jobs (or work­sta­tions) for fin­tech, bank­ing, in­sur­ance, NBFC, IT and ITeS sec­tors

that housed the now bank­rupt Re­liance Com­mu­ni­ca­tions (RCom), a tele­com com­pany which wrapped up op­er­a­tions af­ter be­ing sad­dled with debt of $7 bil­lion, or Rs 46,000 crore.

Re­liance Realty is an ‘in­de­pen­dently man­aged sub­sidiary’ of RCom. The realty arm of the trou­bled group would fully de­velop the fin­tech hub

Go­ing by com­mer­cial real es­tate met­rics, the fin­tech hub could house more than 2.5L jobs when fully de­vel­oped

with a pro­jected cap­i­tal value of about $2 bil­lion, or Rs 14,000 crore. DAKC, lo­cated at Kopar Khairane, has the po­ten­tial to earn rental in­come of around Rs 75 per sqft.

Last week’s state nod to build the first and the largest fin­tech hub came with a floor space in­dex (FSI) of 4. FSI is the ra­tio of the to­tal area to the built- up area. Last year, Am­bani had said RCom, through its sub­sidiary, would fo­cus on un­lock­ing value from its real es­tate as­sets.

There has been spec­u­la­tion about Re­liance plan­ning to de­velop the land in part­ner­ship with Mum­bai de­vel­op­ers such as Panchshil, K Ra­heja Corp or Wad­hwa Group. Re­liance Realty said the par­ent’s bank­ruptcy pro­ceed­ings would have no im­pact on its com­mer­cial of­fice devel­op­ment plans.

Rent-yield­ing of­fice space devel­op­ment has come of age in Asia’s third-largest econ­omy. For­eign in­vestors, who have shunned In­dia’s sub­dued res­i­den­tial realty mar­ket, have poured big bucks into leased of­fice spa­ces for sta­ble yields, rid­ing on a ro­bust ser­vices econ­omy.

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