GVK Power's arm awards first land parcel for commercial development to Oasis for Rs 580 crore

GVK Power & Infrastructure's subsidiary - Mumbai International Airport (MIAL) has kicked started monetization of commercial real estate by finalizing lease of one of the parcel to Oasis Realty. This parcel will have a potential for commercial development of 1.166 million square feet.

Further, this development is part of the process of overall commercial development of 22 million square feet in phases over a period of 10 years. The transaction has been finalized at the rate of approximately Rs 106 crore per acre which translates to total of Rs 580 crore for this parcel at the rate of approximately Rs 5,000 per square foot of build-up area.

This company, further plans to focus on real estate development and this pact is only the first step towards monetizing value at the Mumbai Airport. GVK MAIL took over CSI Airport on May 3, 2008 under operation, management and development agreement executed between GVK led consortium and Airports Authority of India. The operation, development, management, designing, construction, upgradation, mondernisation and financing of airport were undertaken by GVK under a right of 30+30 years. The company now is looking to monetize about 2 million square feet of land of the total 22 million they own.

GVK Mumbai International Airport is a public private partnership joint venture between GVK led consortium and Airports Authority of India (AAI).