Mumbai International Airport Ltd (MIAL) has initiated the process of monetising real estate by sub-leasing over five acres of land to Oasis Realty for ₹580 crore.

MIAL, a company promoted by a GVK Group-led consortium, said that the sub-leased land ‘will have a potential for commercial development of 1.166 million square feet.’ The parcel awarded has been given out for a minimum of 23 years, with the possibility of extending it for another 30 years. The funds thus raised will be used to repay Mumbai airport’s debt and fund its capital expenditure programme.

Transaction finalised Part of the Kamala Group, Oasis Realty has presence across sectors such as real estate, power, hospitality, fashion, HR solutions and tour & travels.

“The transaction has been finalised at the rate of approximately ₹106 crore per acre, which translates to a total of ₹580 crore for this parcel at approximately ₹5,000 per square foot of built-up area,” the company said in a press statement.

This deal is part of MIAL’s plan of developing 22 million square feet near the airport in phases over a period of 10 years under the ‘GVK SkyCity’ initiative, which will cater to passengers, business visitors and the local population. GVK SkyCity will have hotels, serviced apartments, convention centres, entertainment centres and office spaces.

Global convention “Our vision for GVK SkyCity is to develop a vibrant 24x7 business and leisure hub and a global convention and hospitality destination… tenants will be encouraged to value practices such as energy and water conservation, waste management and the improvement of indoor air quality,” said GVK Reddy, Executive Chairman of MIAL.

The GVK Power & Infrastructure scrip was up by 5 per cent to close at ₹13.02 on the Bombay Stock Exchange on Wednesday.

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