In the biggest real estate deal in the redevelopment space, Mumbai-based Narang Developers is believed to have struck an agreement with Bombay Taximen Colony one of the oldest housing societies in Kurla, for around Rs 1,100 crore.
According to the source Bombay Taximen Colony, which consists of about six hundred residential flats and thirty commercial establishments, had opted for redevelopment early this year.
“The concluding deal is yet to be done. We are in initial talks with Narang Developers,” Bombay Taximen Colony secretary AR Siddique said. Narang Developers declined to comment on the deal. As per the contract, most of the society members will vacate their flats after accepting the deal offered by the developer.
According to sources, the nine hundred crore rupees deal which Pune-based Kumar Developers signed with residents of Khira Nagar in Santacruz (W) for redeveloping six hundred forty flats in sixteen buildings, was seen as the biggest in the redevelopment space. However, the deal got stuck because of title disputes.
Redevelopment of old buildings in Mumbai is seen as a big business opportunity, with the government introducing new incentives, including higher FSI and tax incentives. Mumbai has an estimated sixteen thousand buildings that qualify for redevelopment.
Under the redevelopment scheme, old and dilapidated buildings are knocked down to build taller residential buildings and produce space for commercial activities, thereby boosting returns from the project.
Residents of many housing societies, mainly in the western suburbs, have been signing agreements with numerous builders since January 2007 to move out of their apartments in exchange for megabucks running into a couple of crores.
The Bharatiya Bhavan Co-operative Housing Society, tucked away in a corner of 17th Road, Khar (W), received a fabulous offer from a little-known developer from Navi Mumbai called APA, who upstaged many prominent builders when he offered Rs 180 crore for the 37 flats in six buildings. The deal, however, fell through.
Another big housing society near Bandra Talao, Nutan Nagar, created waves when a developer offered the society a whopping Rs 451 crore for the cluster of low-rise residential buildings. This deal, too, failed to go through.