Mumbai airport invites bids for lease of five plots

Mumbai International Airport Limited (MIAL) has invited bids to lease five land parcels, as it tries to start a much delayed commercial development plan.

The 11 acres are close to the international terminal. Estate consultants estimate MIAL could earn Rs 1,500 crore in deposits and rent from the transactions.

MIAL plans to convert the area surrounding the airport into GVK Skycity, a destination for hospitality, commerce, retail and leisure. It envisages leasing 20 million square feet of commercial space. The Skycity will also have three metro stations.

The GVK group, which owns MIAL, is developing the airport on 30-year concession from the Airports Authority of India. MIAL took over management of the airport in 2007. MIAL had invited bids in 2014 to lease land for hotels and office complexes around the airport. It had come near to finalising a deal to lease 5.5 acres for Rs 580 crore in deposit and rent. According to the the original plan for the privatisation of the Mumbai airport, real estate leases were to be used as capital for the project. The airport operator was to raise Rs 1,000 crore from real estate development by 2013.

But commercial development was held up by delays in securing clearances and shifting utilities. Also, the land was being used for airport work. A MIAL spokesperson did not respond to an e-mail query.

Ajay Jain, executive director, investment banking, Centrum Capital, said, “I feel the response (to the lease bids) will be sluggish. The catchment area needs a lot of improvement in infrastructure. Developers also face height restrictions near the airport.”