The monetisation of real estate at the Mumbai international airport is likely to happen by the end of the current financial year. Infrastructure major GVK Power and Infrastructure has been working on a plan to unlock the property value at the MIAL. However, the process was stuck at the stage of getting approvals from the Mumbai Metropolitan Region Development Authority (MMRDA).
GVK was given 10% of the total airport area, or about 198 acres, for development and part financing the development of the airport. Though the company is yet to fix a price for the monetisation, it is expecting about Rs 10,000 per sq ft and the overall plan involves developing about one million sq ft. The monetisation forms a key part of the development of the Mumbai airport since the funds raised through the monetisation would go into funding the project. It is waiting for the approvals and once that happens bids will be called for the property development.
According to sources, the company has two prime models for monetising the real estate. While it is likely to offer outright lease of the parcels of land to commercial developers, the other option is to participate in every commercial project coming up in the land as an equity partner in lieu of the land offered to the developer. However, there is a major risk in the monetisation in the form of hutments in about 250 acres of the total airport land. It is estimated that there are about 85,000 hutments in the area and company has been working jointly with HDIL to relocate the settlers.
Meanwhile, the company is also working on raising funds from private equity players to fund its expansion plans. The PE participation is expected to come in through two separate holding companies for power and airport verticals. GVK is also gearing up to bid for developing a proposed airport at Navi Mumbai.
crackcrack| Company Name | CMP |
|---|---|
| NTPC | 380.30 |
| Tata Power | 399.50 |
| Adani Power | 175.70 |
| Power Grid Corp | 302.60 |
| Torrent Power | 1467.50 |
| View more.. | |
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