Mumbai, August 28: Nusli Wadia-controlled Bombay Dyeing and Manufacturing Company has shifted its focus to develop residential property from commercial property due to the current market environment, a top company official said.
“We have 64-acres of land-bank and are now developing 1-million square feet of residential property in Mumbai,” Bombay Dyeing’s Chairman, Nusli N Wadia, told shareholders at the company’s annual general meeting here.
The company is developing approximately 4,50,000-square feet residential tower in Mumbai and another 4,50,000-square feet tower in the next phase, Wadia said.
Earlier the company had planned a mix of commercial and residential development.
“Because the commercial space market shrunk, there is a huge over-supply and therefore building a commercial property doesn’t make sense,” Wadia said.
The company’s revenue from the real estate division was Rs 273-crore during FY 09 as compared to Rs 240-crore in the previous year.
During FY 09, the company sold a part of the commercial building under construction at the Worli site for a total consideration of Rs 235.02-crore to its wholly-owned subsidiary – a special purpose vehicle set for this limited purpose with a view to its subsequent disposal in the near future.
—Agencies