Rs 4,500-cr realty space for builders

The 93.62-acre Bandra government colony project,slated to be the largest redevelopment project that the city has seen till date...

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The 93.62-acre Bandra government colony project,slated to be the largest redevelopment project that the city has seen till date,will generate real estate space worth Rs 4,500 crore for the three private developers who have been recently awarded the project.

The 250 low-rise buildings in the four-decade-old colony will be bulldozed and reconstructed into towers on about 73 acres of land while the remaining 20 acres will be shared by the three developers who have been given the land on a 99-year lease. DB Realty,Ackruti City and Pune-based Kakade developers were recently given the letters of intent for carrying out the project. The developers will collectively get to build about 2 lakh sq m of space as their sale component on the plot strategically located close to the Western Express Highway and the Bandra Kurla Complex.

We have estimated that the developers will be able to command an average market value of Rs 22,000 per sq ft for flats that they sell in the open market, state chief architect Bipin Sankhe said. At the current market rates alone,this would mean about Rs 4,500 crore of profit for the developers. Considering that the project would take at least five years to be completed,the amount is expected to go much higher.

In addition to the redeveloped quarters,the government will also get 600 extra flats,a super-specialty government hospital and research centre,a school,an administrative building,a convenience shopping complex and a community centre that the developers have to construct and hand over to the government.

Taking into account the construction cost on government buildings and premium incurred by developers,the cost of the 20-acre land handed over to them works out to be about Rs 123 crore per acre, Sankhe said.

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