Mumbai Port Authority to Generate ₹13,279 Crore by Leasing 28 Prime Land Parcels

The Mumbai Port Authority (MPA) is poised to generate nearly ₹13,279.65 crore by leasing out 28 land parcels across the city and the adjoining Raigad district. The authority has initiated the process through an e-tender-cum-auction system, where the allotment will be based on the highest premium quoted by bidders.

Diverse Assets Across Prime Locations

According to official estimates, the upfront lease rent has been calculated for a maximum period of 30 years across these properties, which include prime commercial plots, godowns, office spaces, residential buildings, and industrial zones. This strategic move is expected to significantly boost the MPA's finances and contribute to the urban development of Mumbai.

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Key assets on offer include the Parichay Building plot at P D’Mello Road, the Railway Manager’s building at Ballard Estate, multiple godowns and sheds at Sassoon Dock, commercial estates in Colaba, and a large 19,384 sq mt green zone plot at Thal Knob in Alibag. The highest single earning is expected from the Sassoon Dock RR 1455 plot, with an upfront lease value of ₹110.96 crore. Several smaller godowns in the same cluster carry upfront lease rents ranging between ₹4.67 crore and ₹29.91 crore.

Smaller Assets Add to Revenue Pool

The lease strategy encompasses a wide range of properties, ensuring a balanced revenue stream. Smaller assets, such as the godowns at Sassoon Dock, are also contributing to the revenue pool with their competitive lease values. This diversified approach helps in spreading the financial risk and maximizing returns.

Lease Terms and Flexibility

Officials stated that the land use varies from commercial, industrial, and port-led activities, with lease periods extending up to 30 years. Some spaces, such as offices at Indira Dock, are being offered on shorter annual licence terms. This flexibility in lease terms is designed to cater to the diverse needs of potential investors and tenants.

Strategic Monetisation of Assets

The lease strategy is part of the MPA's broader plan to monetise real estate assets and strengthen its financial position. By leveraging these prime properties, the authority aims to enhance its operational efficiency and contribute to the overall development of Mumbai. This initiative aligns with the government's efforts to promote economic growth and infrastructure development in the region.

Connectivity as a Major Draw

With excellent connectivity to the Eastern Freeway, Mumbai Trans Harbour Link (Atal Setu), airports, and major ports, the sites are well positioned to attract long-term investors. The strategic location of these properties makes them highly attractive for various business activities, ensuring a steady stream of revenue for the MPA.

Scope for Multiple Sectors

The plots will be leased out for industrial, commercial, logistics, warehousing, hospitality, institutional, and recreational purposes. The e-tender-cum-auction system ensures a transparent and competitive process, with the allotment based on the highest premium quoted by bidders. This approach is expected to attract a diverse range of investors and contribute to the economic vibrancy of the region.

In conclusion, the MPA's strategic leasing of these 28 land parcels is a significant step towards monetising its assets and promoting urban development. The initiative is expected to generate substantial revenue and create a positive impact on the local economy and infrastructure.