Even as property developers are trying to cash in on the Metro connectivity by raising prices of upcoming properties along the newly opened Metro corridor, the Bangalore Metro Rail Corporation Ltd (BMRCL) is looking at monetising its land assets.
The BMRCL holds around 30 acres at various Metro stations in the city which are situated at prime locations.
The corporation, which is aiming at generating 20-25% of its revenues from non-fare sources, has invited bids from real estate developers for select locations to develop large land parcels owned by it. The move is expected to generate non-fare revenues in excess of Rs.250 crore, a senior BMRCL official said.
To begin with, BMRCL has identified seven stations where it can monetise land parcels. Of these, it has floated tenders for two stations. “We have identified three stations on both East-West and North-South corridors for development. These are Nagasandra, Baiyappanahalli and Banashankari, where we have large land parcel. We have already floated tenders for the first two and tenders will be floated very soon for Banashankari station, where the Metro services are yet to start,” U A Vasanth Rao, general manager (finance), BMRCL, told FE.
He said the corporation has received good response from the realtors and tenders will be opened soon. “We have asked bidders to suggest their plans as to how they want to develop the land. They are free to build an IT park, a mall or any other commercial building. The land will be given on a long lease basis,” Rao said.
For the builders, the advantage is the connectivity — which is a premium in a city lacking public transport — offered by the Metro. For BMRCL, the bids on the large chunks will see cash pouring in to deal with its large debts as well as its expansion plans.
The corporation will finalise the tenders sometime during the first week of June, he said.
BMRCL will provide a direct connection between the respective Metro station and the proposed real estate project. The corporation has already experimented the model of providing direct access to its station at Mantri Mall in Malleshwaram.
BMRCL holds a 14-acre land parcel at Nagasandra and five acres at Banashankari Metro stations. It is also looking at developing parking complexes at select stations like Mysuru Road, Nagasandra, Baiyappanahalli and Cubbon Park among others, Rao said.
BMRCL’s move to open up its land could work out to be a big boon for real estate developers as they will get land on lease in prime locations of the city with modern transport connectivity like Metro. They are also free to utilise the land in whichever manner suitable to both BMRCL and themselves. The public will also be benefited by getting access to Metro at either their workplace or shopping mall, etc, Rao said.
