K Raheja Corp buys rights for 153,000 sq ft FSI in Mumbai’s Wadala

K Raheja Corp has purchased around 153,000 sq ft of floor space index (FSI) rights in central Mumbai's Wadala neighbourhood from a joint venture of MM Developer and Saroj Landmark Realty LLP for more than Rs 2.75 billion. The FSI rights will be used to create the free-sale component of a slum rehabilitation project in Shanti Nagar, Wadala. The project's slum redevelopment component, which includes the new tenements, has been finished and has already earned its Occupation Certificate (OC). On December 16, 2022, the Slum Rehabilitation Authority issued the OC for the ground plus 1st to 19th upper levels of the project's rehabilitation portion. According to the legislation governing slum rehabilitation projects, the free-sale component can only be sold when the rehabilitation element has been completed. With the FSI rights, the corporation can build around 350 residential apartments. The company paid almost Rs 165 million in stamp duty for the registration of the deal on January 25, according to paperwork retrieved through CRE Matrix, a real estate data analytics service. K Raheja Corp bought the development rights through its subsidiary K Raheja Corp Realty, which will pay the full value to the sellers in six tranches. K Raheja Corp has already paid the seller the first tranche, which amounts to approximately 10% of the entire value and totals more than Rs 275.1 million. The second tranche of 10% funding will be given after the developer completes the plinth level, and the third tranche of Rs 550.2 million will be paid after the developer secures building clearances from the Ministry of Environment and Forest (MoEF). Upon completion of each slab, the buyer will pay 2% of the total consideration amount. The authority has granted the free-sale component of the project a start date of June 2022. While the overall land parcel is larger than an acre, the area for the free sale component is the remaining usable fraction once the rehabilitation section is completed. Also Read K Raheja Corp purchases rights for a 1.53 lakh sq ft FSI in Mumbai Jaypee Infratech's net loss increased to Rs 601 crore in Q3 FY23