Construction Industry News
A joint venture between MM Developer and Saroj Landmark Realty LLP sold floor area index (FSI) rights of nearly 1.53 lakh sq ft in the wadala area in central Mumbai to real estate developer K Raheja Corp for more than Rs 2.75 billion.
The FSI rights are for the creation of the free sale part of a project to renovate a slum in Waldala. The redevelopment component of the project's slum, including the new tenements, has now been completed and has been awarded an occupancy certificate (OC).
On December 16, 2022, the Slum Rehabilitation Authority awarded the AAC with respect to the ground floor plus the first to nineteenth upper floors of the rehabilitation part of the project.
According to the rules for slum rehabilitation projects, the free sale portion can be sold only after the rehabilitation phase is completed. With the aforementioned FSI rights, the corporation can create about 350 residential apartments.
The company had paid stamp duty of more than Rs 160 million for the registration of the transaction that took place on January 25.
Through its subsidiary K Raheja Corp Realty, which will pay the full payment to the sellers in a total of 6 tranches, K Raheja Corp has purchased the development rights. K Raheja Corp has already paid the seller the first installment, which represents about 10% of the full fee and totals more than Rs 270 million.
After the developer completes the plinth level, the next 10% of the funds is due, and after the developer receives the permission of the building from the Ministry of Environment and Forest (MoEF), the third tranche of the fee, which costs Rs 550 million, is due. Upon completion of each plate, the buyer pays 2% of the full fee sum.
The free sale portion of the project will officially begin in June 2022 thanks to a starting certificate from the authority. The space for the free sale component is the remaining piece that is available once the rehabilitation element is completed, even though the total ownership plot covers more than one hectare.
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