In a departure from the past, it is exploring BOT (Build Operate Transfer) options and is looking to rope in private players who will develop the space for PMPML, and sublease it themselves to make good their investment. PMPML should benefit by at least Rs 7 crore from this move.

“The company is already earning rent from some premises leased under the rent control act. The new ones will be leased out according to the Maharashtra Leave and Licence Act. The PMPML can expect a windfall,” said Rajiv Dongre of Dongre and Dongre Associates, an architects and engineers firm that has been retained by PMPML for the process of issuing tenders and planning purposes. Dongre declined to quote how much money the company could expect saying that the tendering process is yet to begin.

“The tenders will be issued some time next week,” said an official from the civil department of PMPML. “We are already earning up to Rs three crore from property leased out in Swargate, Deccan area and Hadapsar,” he said.

Approximately 2 lakh sq ft has been leased out by PMPML which is fetching it Rs three crore annually. In Swargate, it has leased out 75,000 sq ft to the Income Tax department at about Rs 21/ sq ft while another 48,000 sq ft has been let out to the industrial court and the forest department at Rs 30 per sq ft. At Deccan, PMPML has let out 40,000 sq ft to State Bank of India and to the Registrar of Companies at Rs 30 per sq ft whereas in Hadapsar it earns Rs 16 per sq ft on 40,000 sq ft leased out to private commercial offices.

“In Hadapsar, Rs 16 per sq ft is very low. A ballpark estimate for rental prices is that they should work out to at least one per cent of the sale price. Commercial space at Hadapsar is definitely not available at Rs 1,600 per sq ft,” said Sanjeev Arora, director, Global Group, which is into developing of industrial land. The rate being quoted in Hadapsar is Rs 3,000-4,000 per sq ft.

Commercial rents are also decided on the basis of the construction and the requirement of the builders. A civil department official said that PMPML is expected to clear for development a minimum of 40,000 sq ft at Pune Station, Hadapsar and Kothrud each — in all 1.2 lakh sq ft. More space would be released when the company’s building department clears the request. Dongre said that up to 2-lakh sq ft of commercial space could be developed.