Kanakia to take up redevelopment project in Versova

Kanakia Group, whose promoters recently sold a controlling stake in multiplex chain Cinemax India to PVR, is building a portfolio of redevelopment projects as it trains its focus again on residential developments. Mumbai-based Kanakia Spaces is in advanced negotiations for the redevelopment of a housing society in Mumbai’s Versova suburb.

The project will open up 1,00,000 sq.ft of built-up or constructed area for redevelopment, Chairman Rasesh Kanakia said. The company is also scouting for land for greenfield projects such as townships, he said. Kanakia Spaces is among Mumbai’s top private developers with a portfolio exceeding 10 million sq.ft of residential, office and industrial space as well as malls, hotels and schools.

Once a large builder of residences in Mumbai, Kanakia Spaces ventured into office development in a big way a few years ago when the city’s real estate market, especially for offices, surged.

But today, when the global markets are down, most developers want to balance their project portfolios and keep a 70:30 or 80:20 ratio between residential and commercial development, said Raja Kaushal, Managing Director, BNP Paribas Real Estate and Infrastructure Advisory Services.