D B Realty on Monday said the Municipal Corporation of Greater Mumbai has taken on lease a 186-acre land parcel on the outskirts of the financial capital at a yearly rental of Rs 248 crore.
The lease for the plot in Mira Road is for five years which is extendable by another two years, according to an exchange filing by the city-based realty firm.
The city civic body plans to set up casting yards and undertake allied works for its various projects on the land parcel, it said.
The MCGM had floated a tender for hiring of land parcels for the said period, and DB's wholly-owned subsidiary Mira Real Estate Developers emerged as the successful bidder.
Mira Road Estate Developers owns a 254.99-acre land parcel at the spot close to the Mira Road Railway Station, of which 186.52 acres have been carved out to be given to the civic body, the statement said.
The company is expected to receive an average of Rs 248 crores per annum as license fee (including considering yearly escalation) for renting out the land, it said, adding that the rental will be paid on a quarterly basis.
The land parcel is largely situated in the residential zone and has over 50 million sq feet of development potential which is expected to be undertaken for the development of an integrated township post-completion of the coastal road connecting south Mumbai with the western suburbs, it said.
The current residential capital value in the area is approx Rs 20,000 per sq feet carpet area, it said.
DB Realty shares closed 5.41 per cent down at Rs 267.45 apiece on the BSE on Monday, as against a 0.83 per cent decline on the benchmark.
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