Anil Ambani’s Reliance Realty has received the Maharashtra government’s final clearance to develop a 30-million-sqft smart fintech hub at Dhirubhai Ambani Knowledge City (DAKC), located in Navi Mumbai. The proposed leasable or saleable development will be double the size of the commercial office space in Mumbai’s Bandra Kurla Complex (BKC), estimated at 15 million sqft currently.
A Reliance Group spokesperson told that it received the state government approval on February 8.
The new DAKC project would be built in phases with the government asking Reliance to complete 15 million sqft in the next 10 years. It would host jobs (or workstations) for fintech, banking, insurance, NBFC, IT and ITeS sectors. Going by commercial real estate metrics, the fintech hub, when fully developed, could house more than 2.5 lakh
DAKC is a 132-acre campus that housed the now bankrupt Reliance Communications (RCom), a telecom company which wrapped up operations after being saddled with a debt of $7 billion, or Rs 46,000 crore.
Reliance Realty is an ‘independently managed subsidiary’ of RCom. The realty arm of the troubled group would fully develop the fintech hub with a projected capital value of about $2 billion, or Rs 14,000 crore. DAKC, located at Kopar Khairane, has the potential to earn a rental income of around Rs 75 per sqft.
Last week’s state nod to build the first and the largest fintech hub came with a floor space index (FSI) of 4. FSI is the ratio of the total area to the built-up area. Last year, Ambani had said RCom, through its subsidiary, would focus on unlocking value from its real estate assets.
There has been speculation about Reliance planning to develop the land in partnership with Mumbai developers such as Panchshil, K Raheja Corp or Wadhwa Group. Reliance Realty said the parent’s bankruptcy proceedings would have no impact on its commercial office development plans.
Rent-yielding office space development has come of age in Asia’s third-largest economy. Foreign investors, who have shunned India’s subdued residential realty market, have poured big bucks into leased office spaces for stable yields, riding on a robust services economy.―Times Of India