Mumbai Based Kanakia Spaces Realty Acquires Development Rights for Redevelopment Project
Mumbai-based Kanakia Spaces Realty Pvt Ltd has made significant strides in the real estate sector with their recent acquisition of development rights for the redevelopment of two old buildings in Mumbai’s Borivali area. The two housing societies have been standing for over 50 years and are located in the Govind Nagar area of Borivali. The redevelopment of these buildings is being conducted under the cluster redevelopment policy of the Maharashtra government.
Agreement Value and Stamp Duty Paid
According to property registration documents accessed by CRE Matrix, the value of the two development agreements (DA) stands at a whopping Rs 208.53 crore. To move forward with the transaction, a stamp duty of Rs 11.40 crore was paid, showcasing the seriousness and commitment of Kanakia Spaces Realty. These figures highlight the substantial investment and confidence placed by the company in this redevelopment project.
First Building: Shree Mohan CHS Ltd
Spread across 2.02 acres, the first building, named Shree Mohan Chs Ltd, currently occupies 70,616 square feet. Upon redevelopment, it is set to gain an additional area of 36%, resulting in a total area of approximately 96,038 RERA carpet. Furthermore, each flat will be allotted one parking space.
Second Building: Shree Balwant CHS Ltd
The second building in this redevelopment project is called Shree Balwant Chs Ltd and spans 1.31 acres in total. It currently has an existing carpet area of 55,869 square feet. With redevelopment underway, the residents will benefit from a 45% increase in the area, along with a provision for 51 car parking spaces.
Financial Assistance for Tenants
To ensure a smooth transition during the redevelopment process, Kanakia Spaces Realty has offered financial assistance to the tenants. As per the agreement, tenants will receive a monthly rental amount of Rs 60 per square foot for the duration of the redevelopment period. This assistance aims to alleviate any burden during this transformative phase.
Projected Timeline for Completion
According to the development agreement, the redevelopment of both buildings will be carried out within a period of 36 months. The objective is to complete the entire project, including the saleable component, and obtain a full occupation certificate (OC) within 66 months. This timeline shows the commitment of Kanakia Spaces Realty to deliver a quality project within a reasonable timeframe.
This redevelopment project in the vibrant city of Mumbai highlights the continuous efforts being made to enhance the existing infrastructure, upgrade old buildings, and provide modern amenities for residents. Kanakia Spaces Realty’s acquisition of the redevelopment rights sets a remarkable precedent in the real estate sector and showcases their dedication towards transforming the urban landscape of Mumbai. The project’s success will not only benefit residents but also boost the overall real estate market in the Borivali area.
