K Raheja Corp has acquired floor space index (FSI) rights of nearly 1.53 lakh sq ft in central Mumbai’s Wadala locality for over Rs 275 crore from a joint venture between MM Developer and Saroj Landmark Realty LLP.
The FSI rights are for the development of the free-sale component of a slum rehabilitation project in Wadala’s Shanti Nagar. The slum rehabilitation part of the project including the new tenements has been completed and has already received its Occupation Certificate (OC).
The Slum Rehabilitation Authority has issued the OC on December 16, 2022 with respect to ground plus 1st to 19th upper floors of the rehabilitation part of the project.
As per the regulations governing slum rehabilitation projects, the free-sale component can be sold only after completing the rehabilitation portion. The company can develop over 350 residential apartments with the said FSI rights.
The company has paid stamp duty worth over Rs 16.50 crore for the registration of the transaction that took place on January 25, showed the documents accessed through CRE Matrix, a real estate data analytics firm.
K Raheja Corp has acquired the development rights through its subsidiary K Raheja Corp Realty that will pay the entire consideration to sellers in total 6 tranches. The first tranche, around 10% of the total consideration, amounting to over Rs 27.51 crore has already been paid by K Raheja Corp to the seller.
The next tranche of 10% funds will be payable after the developer completes the plinth level, while the third tranche of the consideration worth Rs 55.02 crore will be paid after the developer obtains approvals from the Ministry of Environment and Forest (MoEF) for the building. The buyer will pay 2% of the total consideration amount upon the completion of every slab.
The authority has issued the commencement certificate for the free-sale component of the project in June 2022. While the entire land parcel is spread over more than an acre, the area for the free sale component is the balance available portion after the execution of the rehabilitation part.
The said development rights will be used by K Raheja Corp Homes, the residential vertical of K Raheja Corp Group. The company has developed over 10 million sq ft of mid-income and luxury housing across five cities of India including Mumbai, Pune, Hyderabad, Bangalore, and Goa.
In January, the company’s residential development arm entered into an agreement to develop a 1-million-sq-ft luxury housing project spread over 3-acre prime land parcel in South Mumbai’s Mahalaxmi locality.
It also recently acquired an over 1.5-acre land parcel in central Mumbai’s Sion locality from a public charitable trust K J Somaiya Trust for over Rs 120 crore.
An additional 0.4-acre land parcel adjoining this plot in Sion will also be acquired by the developer through a separate transaction later, as per the terms agreed upon between both the parties. With the second tranche of the deal, K Raheja Corp will own nearly 2 acres of land in this location.