Mumbai: Oberoi Realty takes over Rs 3,000-crore rehabilitation of Worli society – ET RealEstate

MUMBAI: A stalled redevelopment project in Worli worth Rs 3,000 crore has been taken over by Oberoi Realty after the earlier builder, HBS Realtors, appointed by the society in 2009, was unable to complete the work.

The tragic case of 192 families that resided in Worli’s Shivshahi cooperative housing society, comprising 12 buildings (demolished seven years ago), highlights the mess in redevelopment projects in Mumbai.

Almost two decades after first initiating a redevelopment proposal, 12 years after appointing a builder and seven years after they vacated their flats, the residents were left high and dry by HBS Realtors (Wonder Value Realty). The prime 3-acre plot is located opposite the Glaxo property in Worli.

The buildings were demolished in 2014. Since 2019, though, the builder stopped paying their rents—displacement hardship allowance (Rs 70,000 to Rs 80,000 a month)—leaving these families in the lurch and forcing them to shift to far-off locations.

Some months ago, the harried society members approached Oberoi Realty that gave them an offer letter.

Incidentally, in 2007-08, Oberoi had dragged the same society to court, accusing it of reneging on a memorandum of understanding signed with it for redevelopment. Oberoi had lost the case against the society, which had then appointed HBS Realtors and IL&FS.

Oberoi’s new offer letter promises each resident a 1,025-square-foot flat with 425 car parking spaces in the rehabilitated tower. The developer will also pay the society Rs 27 crore to be distributed among the members as additional corpus since the previous builder did not pay the DHA.

Oberoi will also pay Rs 1 lakh a month to each member as DHA. “An amount of Rs 35.4 crore shall be payable towards the corpus of your members for the FSI up to 3.19 and which will be paid by us in proportion against each of your members being handed over possession of their respective flats,” it said.

“A further amount of Rs 61.44 crore will be paid as corpus on the FSI being 4…,” said the offer letter signed by the developer Vikas Oberoi.

The society has terminated its earlier agreements with HBS Realtors and given 100% consent to Oberoi to finish the project. The 3-acre plot has a saleable portion of almost 8 lakh sq ft.

The new agreement follows a harrowing experience faced by residents over the past decade with the previous builder.

According to the original agreement signed with the society in 2009-10, HBS Realtors was to demolish their old buildings only after constructing the rehab tower. This never happened. Residents alleged that the society’s managing committee amended the agreement twice that allowed their eviction before their rehab building was constructed.

Since the past two years, the builder stopped paying rents for their alternate accommodation nor was the rehab tower completed. The three-acre land on which the Shivshahi society stands, was leased to Mhada by the municipal corporation for 999 years for building EWS tenements for industrial workers. The buildings came up in 1950.

Shivshahi is just one of the five societies in the 34,000 sq m (8.5 acres) Mhada layout. Of this, Shivshahi occupies about 12,325 sq m (3 acres).



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Work to construct transit homes for BDD chawl residents begins in Worli – ET RealEstate

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MUMBAI: Work has started on construction of transit buildings at Worli for BDD Chawl residents, kickstarting one of the city’s largest redevelopment projects in central Mumbai. These are being constructed on open spaces within the BDD chawl complex.

“The proposal is to construct three transit buildings. About a month ago, work started on two buildings and these will be ready in the next two years,” said a Mhada official.

The Worli BDD chawls comprise 121 chawls with 9,680 tenants. So far Mhada has carried out the survey for eligibility in 14 chawls. In phase I, the Maharashtra Housing Area Development Authority (MHADA), the nodal authority for redeveloping BDD chawls, will be shifting 1,120 tenants.

While Mhada has 1,816 tenements at the Bombay Dyeing and Srinivas Mills compound in central Mumbai, these have been taken over by BMC for a Covid care centre. Mhada officials said these are likely to be returned in January.

Unlike in Naigaum, Dadar, where there has been strong opposition to the redevelopment of the chawls, at Worli and N M Joshi Marg, tenants have been cooperating with the authorities. The state government has promised 500-sqft carpet homes to those eligible .

At N M Joshi Marg, which comprises 32 chawls, the survey has been completed in 10 chawls and 273 have already been given transit accommodation. “Around 800 tenants are to be shifted and so far 607 have been found eligible. Work to confirm eligibility of the others is in process,” said the official.

The Worli redevelopment will result in 4,000 saleable flats for middle- and high- income groups.



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South-Central Mumbai luxury home sales records sharp pick up in October – ET RealEstate

MUMBAI: Luxury apartments in south-central Mumbai, an area that was saddled with supply, saw a sharp pickup in sales in October, providing relief to the developers who were struggling to offload inventory after Covid-19 pandemic disrupted the real estate market.

A reduction in stamp duty, festive offers, ready stock and minimal impact of Covid-19 on its target buyers helped boost sales in this upscale area .

South-central Mumbai localities – including Tardeo, Mahalaxmi, Worli, Prabhadevi, Byculla and Lower Parel – have witnessed a jump of more than 230% year-on-year in monthly sales to Rs 500 crore, showed data from Anarock Property Consultants.

In October last year, these localities had recorded sales of Rs 150 crore for apartments priced above Rs 5 crore.

“The limited-period reduction in stamp duty cut has had an impact across segments including even Mumbai’s hyper-expensive luxury locales,” said Anuj Puri, chairman, Anarock Property Consultants. “At such steep ticket prices, even HNIs (high net worth individuals) are not impervious to potential savings. The offers currently rolled out by developers are also pushing sales in these markets. The stamp duty cut alone helps buyers save at least Rs 12 lakh on a property worth Rs 4 crore, and the saving goes up as the average property cost increases.”

The Maharashtra government had reduced stamp duty to 2% from 5% till December-end and 3% between January and March 2021 in a bid to encourage home sales.

According to property brokers, the pandemic’s impact on clientele for such properties has been limited and these prospective buyers are largely scouting for ready homes or those nearing completion.

Developers expect the trend to continue during the festive season.

“October was the best-ever month for sales in the luxury and premium segment, with over Rs 400 crores of sales in just one month. This builds on the continued momentum since July,” said Abhishek Lodha, managing director, Lodha Group. “Consumers have a clear preference for ready homes and with limited ready supply, stamp duty cut, low interest rates and increased preference for home buying, we expect the sales in premium and luxury to continue to be strong.”

The stamp duty reduction not only helped convert pent-up demand in the mid-income and affordable segments but also prompted the conclusion of several large-ticket transactions in the city, and the trend is seen picking up further during the ongoing festive season. Several large transactions are getting concluded in Mumbai, the country’s most expensive property market, in the backdrop of reduced stamp duty charges and various offers.

South-central Mumbai is also witnessing this uptrend in sales.

These micro markets are known for their proximity to business hubs and traditional luxury pin codes of south Mumbai. These also house many high-profile names including industrialists, sports people, start-up founders and C-Suite professionals, and therefore the preference of this buyer segment continues to be in favour of the micro market.

Given the pickup in sales, the unsold stock in south-central Mumbai localities reduced by more than 5% in a year to 11,300 units at the end of September, showed the data. In 2019, unsold stock in these premium localities had risen 8% from a year ago. Therefore, with dipping inventory levels, luxury housing developers, who are active in these micro markets, are breathing easier now.



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Cyril Shroff, Paridhi Karan Adani buy Rs 36 crore flat in Mumbai’s Worli – ET RealEstate

Lawyer Cyril Shroff and his daughter Paridhi Karan Adani, daughter-in-law of business tycoon Gautam Adani, have jointly bought a sea-view apartment in an almost ready super-luxury project in central Mumbai‘s Worli locality for about Rs 36.33 crore.

This is the third apartment they have jointly purchased in Oberoi Realty’s project Three Sixty West on Dr Annie Besant Road.

The earlier two deals were valued at Rs 74.66 crore, pushing the total value to nearly Rs 111 crore. Two of the apartments are on the 38th floor of a 65-storey tower while the third one is one floor below in the same tower.

All three apartments have been registered under APC Benefit Trust, which counts Paridhi Adani and Cyril Shroff as its trustees.

Paridhi is a partner in the Ahmedabad office of law firm Cyril Amarchand Mangaldas and is currently a part of its general corporate practice group.

Total built up area the father-daughter duo own in the super luxury project is more than 18,600 sq ft, and they have parking space for 12 cars.

Stamp duty paid for the latest deal registered on September 21 stood at Rs 72.66 lakh, much less than the stamp duty for the other two apartments registered in September 2018 that totalled Rs 3.74 crore. ET has reviewed copies of registration documents of these transactions.

The Maharashtra government has reduced stamp duty from 5% to 2% up to December end and 3% between January and March in a bid to encourage home sales.

Shroff responded to ET’s query with a “no comment”, while queries to Adani Group and Oberoi Realty remained unanswered until the time of going to press.

Residential property sales in Mumbai is witnessing a major push on account of the state government’s decision to reduce stamp duty and is expected to pick up further during the ongoing festive season.

Three Sixty West is a mixed-use development comprising two towers. One of the towers will house The Ritz-Carlton Hotel and the other will have luxury residences managed by Ritz-Carlton.

The project is nearly ready for possession and has applied for an occupation certificate from the civic authority. Many buyers have taken possession to start their interior and fit-out work.

The project has seen several industrialists and high-profile professionals picking up properties. Romesh Sobti, former MD and CEO of IndusInd Bank, recently bought two sea-view apartments for over Rs 76.30 crore.



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