Kalpataru acquires redevelopment project in Mumbai’s Borivali, to invest Rs 700 crore, ET RealEstate

June 23, 2023

Realty developer Kalpataru has acquired the rights to redevelop a housing society spread over nearly 6 acres in Mumbai’s Borivali suburb and is planning to invest around Rs 700 crore to develop an over 7 lakh sq ft residential project here.

The project involving redevelopment of the Yoganand Co-Operative Housing Society, which currently accommodates nearly 400 residents, is expected to be completed in 3-4 years. The project is estimated to generate revenue worth Rs 1,300 crore based on the current business assumptions, said property consultants.

As part of the development agreement, Kalpataru will be developing and handing over a carpet area of over 2.41 lakh sq ft as per RERA regulations to existing residents, showed the documents accessed through CRE Matrix. At present, the existing residents occupy 1.56 lakh sq ft carpet area in the society.

The agreement concluded on March 28 is valued at nearly Rs 177 crore and the company has paid stamp duty of around Rs 11.67 lakh for the registration of the same.

Constructed in around 1974, the housing society currently has a total 11 buildings comprising ground plus three upper floors. These existing buildings have a total 400 apartments spread over 390 sq ft carpet area. The developer will be providing new apartments spread over 603 sq ft to residents against their existing residential units.

Last week, ET had reported that Kalpataru concluded a revenue-share agreement with the Indian Hume Pipe Company to develop an over 2.3 million sq ft mixed-use project on a nearly 15-acre land parcel in Pune’s Vadgaon locality.

The company is planning to invest around Rs 1,000 crore in this Pune project to be developed in two phases over the next 6-7 years.

The developer’s subsidiary Kalpataru Gardens had earlier entered into a memorandum of agreement for this development. The pact has now been revised and the developer’s revenue share in the project is now increased to 67.50% from 66%, while Indian Hume Pipe Company will get the balance share.

Around 90% of the project will be premium residential development and the remaining part will be commercial. Based on the current property rates in the vicinity, the project is estimated to fetch total revenue of Rs 2,500 crore, of which nearly Rs 1,700 crore will be Kalpataru’s share.

Transactions for land parcels have started to gather momentum again with many deals including outright acquisitions and joint ventures in key property markets of Mumbai, Pune, Chennai, Hyderabad, and Bangalore either being closed or expected to close soon.

The increased demand for land parcels is led by sustained recovery in the housing market and buoyed warehousing and data centres space.

Over the past few years, several realty developers have reworked their business strategies to focus on asset-light models, such as joint development and development management agreements.

  • Published On Jun 16, 2023 at 08:43 AM IST

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