Worli's Shivshahi Society to be Redeveloped by Prestige Falcon Mumbai Realty - INR 6000 Cr Revenue Potential

Worli's Shivshahi Society to be Redeveloped by Prestige Estates

One of Bangalore's biggest real estate developers who has already created waves in the Mumbai real estate market, Prestige Estates, has signed a contract to redevelop Shivshahi Housing Society in Worli, South Mumbai - comprising over 1 million square feet with a potential revenue of nearly INR 6,000 Crore.

The Shivshahi society redevelopment project consists of 192 tenements on 3.3 acres located adjacent the Glaxo Smith Kline Pharmaceuticals property on Dr Annie Besant Road in the heart of South Mumbai.

The redevelopment project has been stalled for more than a decade due to the inability of the original developers to carry it out for a variety of reasons, including disagreements with the society's members.

Prestige Estates has repaid a loan of Rs 170 crore raised by the previous developer against the development potential of the housing society. Additionally, Prestige Estates will invest over Rs 578 crore in construction costs, compensation to society members, and premiums for obtaining fungible floor space index (FSI).

The total development potential of the undertaking in Worli is 1 million square feet of carpet area. After factoring in the rehabilitation portion, they will have a free-sale portion of approximately 7.5 lakh square feet, according to Venkat K Narayan, CEO of Prestige Group.

According to him, the company intends to develop a high-end residential project in this area, and based on the current property prices in the area, it is anticipated that the development will generate approximately Rs 6,000 crore in revenue.

The company engaged into this redevelopment agreement with The Worli Shivshahi Co-Operative Housing Society via its subsidiary, Prestige Falcon Mumbai Realty. According to documents retrieved via CRE Matrix, the company paid nearly Rs 29.12 crore in stamp duty for the recent registration of the agreement.

On the tract, Prestige Estates Projects intends to construct a high-end residential community, which it anticipates will be completed within four years after construction commences. It plans to initiate the initiative in September, as it is presently undergoing planning and approval.