Godrej Properties inks pact to develop residential project at Worli
The land parcel is part of a slum rehabilitation project
Godrej Properties has inked an agreement with Akshaya Sthapatya (ASPL) to jointly develop a 1.1 million sq ft residential project at Worli, Mumbai.
The mega-ticket, sea-view project is the first such deal in the country since the COVID-19-led lockdown disrupted work and demand in the real estate sector.
The transaction is envisaged on a profit-sharing basis between ASPL and Godrej Properties. Real estate developers Satellite Group and Aniline are key shareholders of ASPL.
The land parcel is part of a slum rehabilitation project being jointly developed by ASPL. The project will be spread over five acre and include rehabilitation of over 1,500 families living in slum dwellings.
The project was started in 2002 with a few other partners who are not part of the venture anymore. It was stuck due to regulatory issue over Coastal Regulation Zone (CRZ) norms.
The estimated free sale component is around 1.17 million sq ft, subject to statutory approvals, including CRZ clearance. The land parcel is diagonally opposite Nehru Center with access from Annie Besant Road.
As per the agreement, ASPL, through Dynamix and Satellite, will be executing the rehabilitation part of the project located next to the National Sports Club of India (NSCI), while Godrej will undertake the free-sale component.
Godrej Properties has inked the deal and already paid a token amount for the same and will pay a further premium upon successful completion of agreed milestones.
Based on a lower range of market rate of Rs 35,000 per sq ft and one million sq ft development potential, the project revenue will be around Rs 3,500 crore. Apart from this, each party will get their share of profit after factoring the cost.
The marketing and branding of the residential project will be done jointly by the entities, while the design and master layout of the project is being worked out by Godrej Properties.