Realty developer Paradigm Realty has entered into agreements to redevelop 11 housing societies spread across land parcels of more than five acres in Mumbai’s western suburb of Bandra and Kandivali. The project has gross consolidated revenue potential of around Rs 4,500 crore.
These projects in Bandra’s Pali Hill and Carter Road areas, and Kandivali’s Mahavir Nagar, are estimated to have development potential of over 2.8 million sq ft. The projects in Pali Hill and Carter Road are spread over around half an acre each with development potential of 1.5 lakh sq ft and 1.6 lakh sq ft and estimated revenue of Rs 500 crore, respectively.
The Mahavir Nagar project has a development potential of over 2.5 million sq ft of which the free-sale RERA carpet area of up to 1 million sq ft holds a gross development value of nearly Rs 3,500 crore.
“We are planning to develop luxury gated projects on all three layouts. We will be financing these projects through our internal accruals, construction finance, equity, and pre-sales. We are currently in the process of seeking approvals for the development plans that are expected over the next few months and the launch is expected in the fourth quarter of this financial year,” Parth Mehta, CMD, Paradigm Realty, told ET.
The developer paid Rs 10 crore as stamp duty for the registration of the redevelopment agreement with nine housing societies in Kandivali’s Mahavir Nagar. This is the fifth project being undertaken by the developer in the western suburbs of Mumbai.
The company has already delivered over 1,200 apartments across three completed projects in Kandivali and Borivali suburbs, taking its total completed apartments to 3,000 in Mumbai’s western suburb over the last five years.
In addition to this, the developer also has an ongoing luxury project with 250 apartments in the vicinity that is expected to see the development of 600 apartments.
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.
Real estate projects involving the redevelopment of old housing societies and rehabilitation are the mainstay of the Mumbai region’s property market as the land-starved city and its peripheral areas have few vacant land parcels.
Last year, the government of Maharashtra said a member of a housing society that undergoes redevelopment need not pay stamp duty on the allotted permanent accommodation as part of the project.
Following this, the member of the housing society undergoing redevelopment is expected to pay only Rs 100 as stamp duty, while the principal agreement between the development and the housing society will be charged as per the conveyance.
The state government’s decision is expected to help push the redevelopment of many old and dilapidated housing societies across key cities in the state.
