Realty Developer Prestige Projects has entered into an agreement to execute an over one mn sq ft housing society redevelopment project with nearly Rs 6,000 crores revenue potential in Mumbai’s Worli locality. The Shivshahi Society Redevelopment project involves 192 tenements spread over 3.3 acres opposite the Glaxo SmithKline Pharmaceuticals property on Dr Annie Besant Road in Central Mumbai.
The redevelopment project has been stuck for more than a decade as the earlier developers could not execute the project due to several reasons including disagreements with the society members. Prestige Estate has repaid a loan worth Rs 170 Crs raised by the earlier developer against the development potential of the housing society and will also be making an investment of over Rs 578 Crs towards construction cost, compensation to society members and premium towards availing fungible floor space index (FSI).
The overall development potential of the project in Worli will be one mn sq ft carpet area. After factoring the rehabilitation portion, we will be able to have a free-sale component of around 7.5 lakh sq ft.
The company is planning to develop a premium residential project here and the development is estimated to fetch revenue of around Rs 6,000 crs given the ongoing property rates in the vicinity.
The company has entered into this redevelopment agreement with The Worli Shivshahi Co-Operative Housing Society through its subsidiary Prestige Falcon Mumbai Realty. The company has paid a stamp duty of nearly Rs 29.12 crs for the agreement’s recent registration.
Prestige Real-Estate Projects is planning to develop a premium residential development on the plot and expects to complete the same in the next four years after commencement. It is planning to launch the project by September as it is currently under planning and approval process.
Prior to the new development agreement, the society has inked a pact with realty developer Wondervalue Realty Developers. Following this pact, the erstwhile developer had raised a loan facility from a consortium of banks including State Bank of India, Union Bank of India, Central Bank of India and Allahabad Bank that is now merged with Indian Bank.
