In a strategic move to bolster its presence in the bustling Mumbai real estate market, Suraj Estate Developers has announced the successful acquisition of approximately 1,073.42 square meters of freehold land. Situated off Lady Jamshedji Road, Mahim (West), Mumbai, the acquisition comes at a total consideration of Rs 33.10 crore.
This significant transaction marks the initiation of a redevelopment project, involving the transformation of seven existing tenants' premises. With these spaces now vacant, Suraj Estate Developers aims to leverage this opportunity to enhance its sales potential significantly.
Commenting on the acquisition, Rahul Rajan Jesu Thomas, the whole-time director of Suraj Estate Developers, emphasized its pivotal role in fortifying the company's project pipeline and financial outlook. He projected an approximate increase of Rs 120 crore in sales potential, underlining the strategic significance of the acquisition.
Following the necessary adjustments for rehabilitating the displaced tenants and allocating surplus area to MHADA, the estimated balance carpet area available for sale stands at approximately 2,787 square meters (30,000 square feet), boasting a gross development value (GDV) of Rs 120 crore.
Moreover, Suraj Estate Developers recently reached an amicable settlement with OLV & OLPS Society, resolving a longstanding litigation issue. Additionally, the company filed consent terms facilitating the development of a property spanning 7,625.73 square meters, further expanding its development portfolio.
Under the terms of this agreement, Suraj Estate Developers committed to a consideration of about Rs 47 crore, along with additional flats to OLV & OLPS Society, measuring approximately 3,300 square meters (35,500 square feet). This development leaves the company with a built-up area of 10,813.63 square meters (approximately 1,16,400 square feet), including fungible FSI for sale, with a GDV of Rs 350 crore.
In another notable development, the company secured the bid for obtaining development rights for a land component spanning 4,790.76 square meters, featuring five existing buildings occupied by 108 tenants. After accounting for the FSI allocated for rehousing and the surplus area designated for MHADA, Suraj Estate Developers anticipates a minimum built-up area for sale of 6,467.52 square meters (approximately 70,000 square feet), with an estimated GDV of approximately Rs 225 crore
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