Man Infraconstruction’s property development entity MICL Real Estate has acquired development rights of a total 10 adjoining housing societies in Ghatkopar suburb of Mumbai.
The company has acquired the rights to redevelop these housing societies through its subsidiary MICL Creators LLP wherein it holds 60% partnership interest. The project will be executed as a cluster redevelopment under regulation 33(9) of the Development Control Promotion and Regulation (DCPR), 2034.
The entire project spread over a total of more than 3 acres is estimated to have a total development potential of 1.3 million sq ft and free-sale component of over 4 lakh sq ft.
MICL has concluded and registered all these redevelopment agreements with 10 housing societies between May and June, showed the documents accessed through Zapkey.com.
The proposed redevelopment project is expected to be completed within 3.5 to 4 years with a total cost of over Rs 900 crore including the construction cost, rent to be paid to existing apartment owners, premium cost, etc.
The project is estimated to have a total revenue potential of over Rs 1,200 crore based on the current property rates in the vicinity, said property brokers.
MICL has so far developed and delivered 14 residential projects with a total area of 1.5 million sq ft. The company currently has seven ongoing projects with a total area of 2 million sq ft. It has five upcoming projects in the pipeline with a development area of 2.6 million sq ft.
Real estate projects involving redevelopment and rehabilitation are the mainstay of Mumbai’s property market as the land-starved city has few vacant land parcels.
The state government has also been pushing the cluster redevelopment of old and dilapidated buildings in the country’s commercial capital with several incentives to encourage more developers to come forward to undertake these projects.
The government is promoting cluster redevelopments as it is the only option to undertake the redevelopment of Mumbai, especially the city area, where buildings are constructed in a congested space and have high population density.
In May, the Maharashtra government approved a 50% concession in development cess and premium to be paid for fungible floor space index (FSI)–the permissible development on a plot–for the next one year in redevelopment projects initiated under Section 33(9) of the Development Control Promotion and Regulation (DCPR), 2034.