Lodha Group Secures ₹359 Crore Deal for Slum Redevelopment Project.

Macrotech Developers, commonly known as the Lodha Group, has officially obtained the development rights for a free sale component of a prominent slum redevelopment project in the bustling Worli district of Mumbai. This significant development comes with a market value of ₹359.5 crore, underscoring the group's commitment to urban revitalization.

The development agreement has been formally inked between Macrotech Developers, Sattadhar Constructions, and the firm Manju Paras Porwal. The targeted land parcel is strategically located on Khan Abdul Gaffar Khan Road, covering a substantial area of 7,911 square meters, which translates to slightly over 85,000 square feet.

Prior to this agreement, construction work had already commenced on the property, primarily aimed at providing accommodation for approximately 172 slum dwellers currently occupying the existing structures. As part of the redevelopment plan, these buildings will be dismantled and replaced with modern housing. While one portion of the project is designated for the slum inhabitants, the free sale component is entrusted to the Lodha Group under the terms of the agreement.

This ambitious project is expected to be completed within 60 months following the issuance of the commencement certificate by the State Real Estate Regulatory Authority, as revealed in registration documents accessed by data analytics firm CRE Matrix.

Upon project completion, Macrotech Developers and Sattadhar Constructions will equitably share the net revenue generated through the sale of flats constructed within the free sale component, a testament to their commitment to inclusive urban development.

The agreement further outlines the allocation of cash flows generated by the project. In the initial 18 months post-launch, all sale proceeds will be directed towards covering project costs. Subsequently, cash flows will be channeled to service interest on loans, repay the principal amount, and so forth. Only after discharging these obligations can the two parties begin to share the revenue.

With Mumbai fervently striving to eliminate slums and improve living conditions for its residents, the momentum of slum redevelopment has gained remarkable traction. Prominent developers are increasingly embracing such projects, as they not only contribute to the transformation of underprivileged areas but also grant additional floor space indices for constructing premium apartments. These high-end properties can then be sold to recoup the costs associated with rehabilitating slum dwellers, making it a win-win situation for all stakeholders involved.

HBL