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realty developer Prestige Estate Project has entered into an agreement to execute a housing society redevelopment project of over 1 million sq ft with a revenue potential of approximately Rs 6,000 crore. Mumbaiis luxurious Worli territory.
Shivshahi Samaj Redevelopment Project comprises 192 houses spread over 3.3 acres GlaxoSmithKline Pharmaceuticals Property on Dr Annie Besant Road in Central Mumbai,
The redevelopment project has been stuck for over a decade as the earlier developers could not execute the project due to various reasons including disagreement with the members of the society.
Prestige Estates Has paid off a loan of Rs 170 crore raised by the previous developer against the growth potential of the housing society and invested over Rs 578 crore towards construction cost, compensation to society members and premium for availing fungible floor space index will also. FSI).
“Overall Development Potential of the Project Worli There will be 10 lakh square feet carpet area. After factoring out the rehabilitation portion, we would be able to get a free sale component of around 7.5 lakh sq ft,” Venkat K Narayan, CEO, Prestige Grouptold ET.
According to him, the company is planning to develop a premium residential project here and is expected to generate revenue of around Rs 6,000 crore considering the prevailing property rates in the vicinity.
The company through its subsidiary Prestige Falcon Mumbai Realty has entered into this redevelopment agreement with The Worli Shivshahi Co-operative Housing Society. Documents accessed through CRE Matrix show that the company has paid stamp duty of around Rs 29.12 crore for the recent registration of the agreement.
Prestige Estates The project plans to develop a premium residential development on the plot and expects to complete it in the next four years after commencement. It is planning to launch the project by September as it is currently under the planning and approval process.
Prior to this new development agreement, the society had entered into an agreement with the realty developer Wondervalue Realty Developers, Following this agreement, the erstwhile developer obtained credit facilities from a consortium of banks. state Bank of India, Union Bank of India, Central Bank of India and Allahabad Bank which is now merged with Indian Bank,
Some of the members of this association had initiated enforcement proceedings for recovery of loan in the Debt Recovery Tribunal. The consortium has given its no-objection for one-time settlement based on agreed terms with the new developer and withdrawal of debt discharge and recovery proceedings.
The land parcel which houses the buildings constructed in the 1950s was leased by the Municipal Corporation of Greater Mumbai (MCGM) to the Maharashtra Housing and Area Development Authority (MHADA) for 999 years. The plot was then leased out to develop housing for the Economically Weaker Sections (EWS) of industrial workers.
Apart from the residential buildings, the adjacent plot also had about eight huts spread over 2,100 square feet and the society office. Of these, seven have been vacated and demolished by the earlier developer.
Real estate projects involving redevelopment and rehabilitation are the mainstay of Mumbai’s property market as there are few vacant land parcels in the land-starved city. Currently, there are around 19,000 properties awaiting redevelopment in the city and this would be a huge business opportunity for developers with established brands and execution track records.
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