Mumbai: A swank, 72-storey skyscraper with flats and duplexes for sale will come up on NM Joshi Marg in Lower Parel, part of a cluster redevelopment project cleared by the Chief Minister.
The latest proposal is from Shreepati Developers. As with the other two, it will involve demolition of low-rise buildings (one to four storeys) to construct highrises. The project, being carried out by builder RR Chaturvedi of the Shreepati Group, will see the demolition of 25 such buildings and 153 shanties, scattered across a 4.42 acre plot. These include structures at Saat Pansare Chawl, Parsi Wadi, a municipal colony and a couple of other BMC properties along NM Joshi Marg.
In their place, the developer will build the skyscraper and other tall buildings. The 72-storey structure, Shreepati Estates, will be the developer's sale component. It will offer three-bedroom and four-bedroom flats, duplexes and a penthouse along with a swimming pool and a gymnasium.
The developer will also build four 21-storey buildings and one of 19 storeys, where existing tenants will be rehoused, and another 11-storey commercial building that would be handed over to the BMC and the Maharashtra Housing and Area Development Authority.
"The project by Shreepati Developers was given the go-ahead last week. The two other proposals cleared previously under the cluster policy are projects by DB Realty and Nish Developers," said a government official.
These three are among a dozen proposals before the CM. Till date, the high-powered committee formed for the policy has cleared about 25 projects.
The cluster policy offers a floor space index (FSI) of 4 or that required for rehabilitation of existing occupants, whichever is more, plus an incentive FSI to developers taking up reconstructing of pre-1960 buildings prior in the island city.
Developers can commercially exploit an area 55 to 80 per cent of the rehabilitation area.
It may be recalled that Mumbai made headlines when the Lodha Group planned to build the world's tallest residential tower -- World One -- where people will have to shell out a minimum of Rs 7.5 crore to be a resident.
This tower is also to come up at Lower Parel in Mumbai. The company has envisaged an investment of about Rs 2,000 crore for this project, work on which is expected to start soon. The project will be funded through internal accruals, pre-launch sales and debt. The company is also in talks with a couple of private equity players to garner funds for the project.
"Demand for this project will come mostly from non-resident Indians and high networth individuals, who will be driven more by the quality of services than the price. The company will have a challenge in getting height clearance from the government authorities. Insufficient water supply will also be another major hurdle that could delay the construction work," said Abhinav Bhandari, research analyst, Elara Capital.
World One will have more than 117 storeys with a 1,450-feet tall tower, and is expected to be ready by 2014. "These kinds of skyrise projects usually run six months behind schedule. However, with all the technological advancements and best practices that we are bringing in, we are trying to make sure that we complete the project on time," said Abhisheck Lodha, MD, Lodha Developers. He projected an upside of Rs 5,000 crore to the company's topline with this project.
The group on Monday closed its pre-sales offer which was at Rs 25,000-Rs30,000 per square feet (sqft). "We have received an overwhelming response from buyers and have sold out around 50 units at World One till Monday. Our earlier project Lodha Bellissimo is also 93% sold out," said R Karthik, senior VP, marketing, Lodha Developers. Lodha Bellissimo is 225-metre tall, and is among India's tallest buildings.
"Demand is not a concern for these kind of luxury apartments but concentration of these kind of residential apartments at one place is. This is bound to create excess stock in a short period. Also, this land, where the construction is taking place, was a mill and the civic infrastructure around it is not developed," said Pranab Datta, VC & MD, Knight Frank India.
"Markets currently are not favourable for going public and are volatile. So, we have held back our plans for an IPO as of now. Will take a call on it once the markets stabilise," said Anurag Singhvi, CFO, Lodha Developers.
The Storey so far
Shreepati Group:17,890 sq m at NM Joshi Marg, Lower Parel. 72-storey tower, one 19-storey and four 21-storey buildings for rehab, 11-storey commercial building
Nish Developers:26,321 sq m at New Islam Mill compound, Parel. Six 22-storey buildings (rehab), 35-storey commercial structure, two 50-storey residential buildings
DB Realty:22,000 sq m at Turf Estate, Mahalaxmi. 15-storey commercial building, 22-storey residential building.
