Three Maharashtra-based developers — DB Realty, Ackruti City and Pune-based Kakade group — are ahead in the race for one of the biggest redevelopment projects in the state, which will release 10 million sq ft residential space in Bandra east, a popular Mumbai suburb.
The area currently houses a government employees colony spread across 96 acres. After redevelopment, around 30 acres would be used to relocate the existing occupants and the balance 60 acres would be available for various other purposes, including commercial. For DB Realty, the project would add around 5-6 million sq ft of saleable land and between Rs 4,500 crore and Rs 5,000 crore to its topline.
The state cabinet sub-committee on infrastructure projects, headed by chief minister Ashok Chavan, gave a nod to the project a few weeks ago. But with the state legislature currently in session, the government officials declined to comment on the subsequent decision on selection of the developer.
The proximity of the project to Bandra-Kurla Complex, the most sought-after central business district, will enhance the project’s value in the residential segment. Currently, Bandra (east) commands Rs 20,000-25,000 per sq ft for luxury apartments while residential rates hover around Rs 14,000 per sq ft. The rates for office space at Bandra-Kurla Complex are around Rs 225- Rs 275 per sq ft.
Anuj Puri, country head of the property broking firm Jones Lang LaSalle Meghraj, said: “Though there is demand in that part of the city, if such a huge supply comes up at one go, it could have some downward impact on prices. However, it is still too early to say anything, as the project would take time to come up.”
However, a noteworthy point is the way the whole process has taken place. It was only recently that the state government had decided to opt for redevelopment of the project. How the entire bidding process was completed within a short span of time is difficult to comprehend.
Thanks to the handling of the bidding process, there’s a perception that the state government has not been offering a level-playing field to all builders. “The practice of keeping matters ambiguous reminds one of the bidding process for Mantralaya redevelopment,” said an industry source.
The area currently houses a government employees colony spread across 96 acres. After redevelopment, around 30 acres would be used to relocate the existing occupants and the balance 60 acres would be available for various other purposes, including commercial. For DB Realty, the project would add around 5-6 million sq ft of saleable land and between Rs 4,500 crore and Rs 5,000 crore to its topline.
The state cabinet sub-committee on infrastructure projects, headed by chief minister Ashok Chavan, gave a nod to the project a few weeks ago. But with the state legislature currently in session, the government officials declined to comment on the subsequent decision on selection of the developer.
The proximity of the project to Bandra-Kurla Complex, the most sought-after central business district, will enhance the project’s value in the residential segment. Currently, Bandra (east) commands Rs 20,000-25,000 per sq ft for luxury apartments while residential rates hover around Rs 14,000 per sq ft. The rates for office space at Bandra-Kurla Complex are around Rs 225- Rs 275 per sq ft.
Anuj Puri, country head of the property broking firm Jones Lang LaSalle Meghraj, said: “Though there is demand in that part of the city, if such a huge supply comes up at one go, it could have some downward impact on prices. However, it is still too early to say anything, as the project would take time to come up.”
However, a noteworthy point is the way the whole process has taken place. It was only recently that the state government had decided to opt for redevelopment of the project. How the entire bidding process was completed within a short span of time is difficult to comprehend.
Thanks to the handling of the bidding process, there’s a perception that the state government has not been offering a level-playing field to all builders. “The practice of keeping matters ambiguous reminds one of the bidding process for Mantralaya redevelopment,” said an industry source.
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