A Mumbai-based developer, Sheth Homes Private Limited, has entered into a joint development agreement with Bombay Slum Redevelopment Corporation Private Limited (BSRCPL) for an 86,111-sq ft land parcel, registration documents accessed by CRE Matrix showed.
It signed the development deed with Bombay Slum Redevelopment Corporation to develop the free sale land of 1.98 acres at Kandivali wherein the market value of the developer’s share is Rs 236.22 crore, the documents showed.
The agreement value of the deal is Rs 221 crore and the stamp duty paid is around Rs 11 crore.
The slum redevelopment firm has also taken a Rs 400 crore loan from Assets Care and Reconstruction Enterprises, the documents showed.
The document was registered on February 3, 2023.
According to the document, Sheth Homes will offer Rs 100 crore in tranches to BSRCPL for acquiring the land development rights of which Rs 11 crore has been paid by Sheth Developers. The said amount will be used as part payment of the loan.
The developer will complete construction of the first sale component of the project within a period of four years with a grace period of one year from the date of the receipt of plinth commencement certificate of the free sale building in the first phase, the documents showed.
The construction of the second phase of the free sale component of the project will be completed within a period of four years with a grace period of one year from the date of commencement certificate of free sale building of the second phase.
There was no response from Sheth Homes or BSRCPL.
Before 1995, the property was encroached upon by various slum dwellers and was declared to be a censused slum. BSRCPL approached the developer to undertake development of the free sale component of the project on the portion of the property measuring 8,000 sq m (free sale land).
Earlier this month, Mumbai-based developer K Raheja Corp acquired rights over floor space index (FSI) of almost 1.52 lakh sq ft at Wadala in Mumbai for over Rs 275 crore. K Raheja Corp has acquired the rights through its subsidiary K Raheja Corp Realty Pvt Ltd, formerly known as Feat Properties Private Limited, from M M Developer and Saroj Landmark Realty LLP.