Brookfield-backed The Leela Wins Plot in BKC for 250-Key Luxury Hotel

Brookfield-backed Schloss Bangalore (The Leela) has received a commercial plot in Bandra Kurla Complex (BKC) for a mixed-use development project that includes a 250-key luxury hotel, according to a regulatory filing. 

The 80-year lease has been awarded to the company-led consortium that includes its partners Arliga Ecospace Business Park Pvt Ltd, and Schloss Chanakya Pvt Ltd.

• Brookfield-backed Schloss Bangalore secures BKC commercial plot for a 250-key luxury hotel under an 80-year lease.
• MMRDA signs Rs. 3,840.49 crore land deals with Schloss Bangalore and Goisu Realty at Bandra Kurla Complex (BKC).
• Sumitomo Realty’s Goisu Realty wins prime BKC plots, boosting MMRDA’s revenue for Mumbai infrastructure projects.

The allotment is one of two mega deals signed with the Mumbai Metropolitan Region Development Authority (MMRDA). The second deal was with Goisu Realty Pvt Ltd, a subsidiary of Japanese real estate developer Sumitomo Realty & Development Company, and it has been awarded an 80-year lease for two plots at BKC.

According to MMRDA officials, the allotment letters for the plots were handed over on June 3 on the behalf of chief minister Devendra Fadnavis in the presence of Koji Yagi, consul-general of Japan.

Also Read: Brookfield-Backed Schloss Bangalore to Launch Five Hotels Nationwide

Together, the two deals are valued at Rs. 3,840.49 crore. The three plots total 8,6321.80sq m of built-up area and will generate Rs. 3,840.49 crore in revenue for MMRDA, meaning an average of Rs. 4,44,902.80 per sq m against a reserve price of Rs. 3,44,500 per sq m of built-up area for commercial plots with an 80-year lease.

The leases with the two international real estate investors are expected to provide MMRDA with a huge earning. It is embarking on a massive infrastructure spend for the decade - it is undertaking projects worth thousands of crores across MMR, including metro corridors, elevated roads, and major connectors. The income it generates to finance its mega-projects comes from the commercial exploitation of its land bank, plus infrastructure related earnings and revenue from the metro network that it operates.

In February MMRDA issued tenders for seven of its plots in BKC. The tenders for the three plots, with regard to Schloss Bangladore and Goisu Realty were part of this tender round. The MMRDA found no submissions for the remaining four plots - three residential and one commercial. It is expected to process tenders for these plots, again.