Real estate firm Godrej Properties Ltd (GPL) has launched a luxury residential project at the iconic RK Studios in south Mumbai’s tony Chembur neighbourhood. The company is launching Collector’s Edition three and four-bedroom residences, it said in a statement.
The architecture of these luxury homes is inspired by Bombay Art Deco. The development will offer state-of-the-art amenities, plush specifications and strong security attributes.
“We will seek to ensure we celebrate the remarkable legacy of this site with a landmark development that delivers an outstanding lifestyle for its residents,” said Pirojsha Godrej, Executive Chairman, Godrej Properties.
Founded in 1948, the eponymous studio was the headquarters of cinema legend Raj Kapoor’s film production, RK Films, with many iconic movies shot on its premises.
GPL bought the 2.2-acre plot, which offers about 3.5 lakh sq ft of saleable area, in 2019. The company did not disclose the deal value.
Located on the main Sion-Trombay Road with a well-developed social and civic infrastructure, Godrej RKS offers connectivity to all parts of Mumbai through a network of key roads.
As per an analysis by ICICI Securities, Godrej Properties acquired the land parcel for an estimated cost of Rs 2 billion and GPL is offering 146 units across three wings.
“Our channel checks indicate base ticket sizes ranging from Rs 60-110 million ($1-1.5mn), which implies a potential sale value of over Rs 10 billion for this project,” the analysis said.
“While H1 FY20 gross sales bookings of Rs 23.4 billion were up 44% YoY, a strong response to the RK Studios launch may enable GPL to surpass its FY19 gross sales bookings of Rs 53.2 billion. We retain our sell rating, with a revised target price of Rs 772 per share (earlier Rs761), as we factor in higher realisations from the RK Studios project,” it added.
The analysis has said that RK Studios launch may provide sales momentum to the Mumbai market.
The Maharashtra RERA website says the project will have 146 luxury residential units -- 25 2BHKs, 93 3BHKs and 28 4BHKs. The possession date is December 31, 2023.
GPL would initially offer 99 units across three and four-BHKs having a base ticket size of Rs 60-110 million for carpet areas ranging from 1,315-2,258sft which implies carpet area pricing of Rs43,000-48,000/psf or Rs28,000-30,000/psf on saleable area basis assuming an efficiency ratio of 36%, the analysis said.
The analysis noted that the project could potentially generate over Rs10 billion in revenue for GPL over the next three-four years.
Pricing is at a 15-20% premium to other projects in the vicinity and ticket sizes are at par with luxury projects in Lower Parel and Worli in Central Mumbai.
A strong response to the project would indicate GPL’s brand strength and capability to attract demand in an overall sluggish Mumbai luxury housing market, ICICI Securities said.
“Assuming a construction cost of Rs 6,000 psf including FSI/approval costs, the project will have an estimated total cost of Rs 4.1 billion (including Rs 2 billion land cost) and GPL may achieve an EBITDA margin of over 60% in this project considering the revenue potential of over Rs 10 billion,” it said.
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