Realty developer Kalapataru has acquired the rights to redevelop a housing society spread over nearly 6 acres in Mumbai’ Borivali suburbs and is planning to invest around Rs 700 crs to develop on over 7 lakh sq ft residential project here.
The project involving redevelopment of the Yoganand Co-Operative Housing Society, which currently accommodates nearly 400 residents is expected to be completed in 3-4 years. The project is estimated to generate revenue worth Rs 1,300 crs based on the current business assumptions.
As a part of the development agreement Kalpataru will be developing and handing over a carpet area of over 2.41 lakh sq ft as per RERA regulations to existing residents through CRE Matrix. At present the existing residents occupy 1.56 lakh sq ft carpet area in the society.
The agreement concluded on March 28 is valued at nearly Rs 177 crs and the company has paid stamp duty of around Rs 11.67 lakh for the registration of the same. Constructed in around 1974 the housing society currently has a total 11 buildings comprising ground plus three upper floors. These existing buildings have a total of 400 apartments spread over 390 sq ft carpet area. The developers will be providing new apartments spread over 603 sq ft to residents against their existing residential units.
The company is planning to invest around Rs 1,000 cr in this Pune project to be developed in two phases over the next 6-7 years. The developer’s subsidiary Kalpataru Gardens had earlier entered into a memorandum of agreement for this development. The pact has now been revised and the developer’s revenue share in the project is now increased to 67.50% from 66% while the Indian Hume Pipe Company will get the balance share.
Around 90% of the project will be premium residential development and the remaining part of the commercial. Based on the current property rates in the vicinity, the project is estimated to fetch total revenue of Rs 2,500 crs of which nearly Rs 1,700 crs will be Kalaptaru’s share.