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Macrotech, the publicly listed real estate developer operating under the prestigious Lodha brand, has entered into a noteworthy developmental agreement for the free-sale component of a slum rehabilitation project nestled in Mumbai's bustling Worli district. According to documentation obtained from CRE Matrix, the deal carries a market value of Rs 359.48 crore. This venture stands as an integral facet of the state government's ambitious slum rehabilitation initiative, with the designated developers reserving the rehabilitation component of the land for the upliftment and resettlement of approximately 172 slum residents, as elucidated in the comprehensive documents catalogued by CRE Matrix.
Spanning over 85,153 square feet, equivalent to approximately 7,900 square metres, the land encompasses two distinct segments. The rehabilitation component stretches over 26,156 square metres, whereas the free-sale built-up area comprises 22,438 square meters. The project has been allotted a Floor Space Index (FSI) approval of 5.172. A noteworthy Rs 17 crore has been earmarked for the stamp duty payment associated with this consequential project.
The execution of this agreement was an intricate process involving four key entities: the promoter, Manju Porwal, Sattadhar Constructions, Sattadhar Constructions Private Limited, and Macrotech Developers. The transaction was officially registered on October 11, 2023. The project's operational timeline is set, with a targeted completion period of 60 months from the issuance of the essential commencement certificate. Upon the project's fruition, the Lodha Group and Sattadhar Constructions are poised to equitably share the net revenue arising from the sale of constructed flats, manifesting a significant collaborative effort.
The agreement outlines the allocation of project cash flows. During the initial 18 months following the project's launch, all generated sales proceeds will be dedicated to covering project expenses. Subsequently, these cash flows will be directed towards settling the accrued interest on loans, paying down the principal loan amount, and so forth. Once all these financial obligations are met, both parties are then eligible to commence revenue sharing.
In a parallel real estate development landscape, in January 2023, K Raheja Corp. secured FSI rights for 1.52 lakh sq. ft in Mumbai's vibrant Wadala district, investing Rs 275 crore. In February 2023, Sheth Homes Private Limited entered into a joint development agreement with the esteemed Bombay Slum Redevelopment Corporation for an 86,111-square-foot land parcel valued at Rs 221 crore with a stamp duty of Rs 11 crore.
This remarkable surge in slum redevelopment projects in Mumbai, driven by both social and economic imperatives, has enthused several prominent real estate developers. A key allure for these developers is the opportunity to gain additional FSI rights, thereby enabling the construction of premium residential complexes within the same geographical precinct. The revenues generated from these upscale residential developments are strategically earmarked to offset the substantial expenses associated with the rehabilitation and resettlement of the city's slum inhabitants, reinforcing the socio-economic fabric of the metropolis.
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