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