D B Realty receives LoA from BMC for renting land parcel at Mira Road

D B Realty said that it has received a letter of acceptance (LOA) from Brihanmumbai Municipal Corporation (BMC) for renting out approx. 186.52 acres of land parcels owned by the company's partnership firm Mira Real Estate Developers.

The Brihanmumbai Municipal Corporation had invited tenders for hiring of land parcels for setting up casting yards and allied works use for its various vital projects.

Mira Real Estate Developers, a partnership firm in which the Company/its wholly-owned subsidiaries hold 100 % share in profit/loss, is owner of 254.99 acres of land adjoining Mira Road Railway Station on the Western side. The said land is vacant and un-developed. From the total land holding of 254.99 acres, land admeasuring 186.52 acres was offered in the aforesaid tender.

The tender was opened on 22 February 2024 and thereafter evaluated by the BMC after due diligence, the letter of acceptance (LOA) was issued by the BMC on 11 March 2024 in favor of Mira Real Estate, for renting out approximately 186.52 acres of land parcels owned by the firm.

Under this tender, land admeasuring 186.52 acres (7,54,859.64 square meters) shall be temporarily handed over to the BMC on a leave and license for a duration of 3 years (can be further extended by 2 years) at a license fee of approximately Rs 248 crore average per annum (p.a.) over the duration of 5 years.

As per the LOA, the license fee rental has to be paid on basis by quarterly basis by the BMC to Mira.

"The letter of award is subject to signing of a formal leave & license agreement and other terms and conditions as laid down in the tender documents, the company said in a statement.

DB Realty is engaged primarily in the business of real estate construction, development and other related activities.

The company had reported a consolidated net profit of Rs 464.27 crore in the quarter ended December 2023 as against net loss of Rs 619.44 crore during the previous quarter ended December 2022. Sales declined 77.07% to Rs 142.80 crore in Q3 FY24 over Q3 FY23.

The scrip tumbled 4.69% to currently trade at Rs 269.50 on the BSE.

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