Name: VIIR KHUBCHANDANI

DATE: JULY 2018

COMMON APP ID:

Acquisition Opportunity
SRA project in Santacruz – East,
Mumbai, INDIA
CONTENTS

 EXECUTIVE SUMMARY

 OVERVIEW
 PLOT LAYOUT
 MICRO MAP
 INDICATIVE AREA STATEMENT

 MICRO MARKET OVERVIEW

 HIGHLIGHTS

 BENEFITS OF SRS

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EXECUTIVE SUMMARY

Intercon Constructions
About the Developers
The company is run by professionals and is primarily engaged in general contracting/
construction management and has turnkey execution capabilities

- SRA Development, 33(10)

- 84,485 sq.ft. BUA potential*
- Strategic location – near CST road Junction
The Project
- Conveniently accessible from Airport, BKC, South Mumbai and to other parts of the
Western suburbs
- Key Approvals are in place (LOI and IOA)

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OVERVIEW
 OVERVIEW

Asset Details

Gross Plot Area ~3,880 sq.mts.

Site Location C.S.T. Road, Kalina

Landmark Mumbai University

Zoning Residential, Commercial

Access and frontage Vidyanagri (CST) road

- LOI (project) and IOA (rehab) obtained

Project status
- Site vacation / demolition to commence
- Clear title through Sale Deed on C.T.S. Nos.
5063B, 5026 and 7630 (adjudication in
Title process)
- Part payment made to
- SRA for C.T.S. 5027 (Govt. ownership)

Development type SRA u/s.33(10) Kala Niketan Juhu Police Station

Mumbai University

Total Sale BUA potential ~ 84,485 sq.ft.

Subject Property

*The shape of the Property is only indicative

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PLOT LAYOUT – INDICATIVE EXTRACT

6
MICRO MAP

Police Training quarters

Grand Hyatt
Kotak Mahindra Bank

Mumbai University
Axis Bank

Centrum House

Subject Property
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INDICATIVE AREA STATEMENT

Area assumptions
Area of Plot sq.mt. 3,880
Area of Plot sq.ft. 41,764
Less: Road Setback area sq.ft. 9,849
Balance area sq.ft. 31,915
Less: RG sq.ft. -
Net area of Plot for consumption of T/S Density sq.ft. 31,915
Add: Road setback area for FSI Purpose sq.ft. 9,849
Total Plot area for FSI Purpose sq.ft. 41,764
Permissible FSI 3.00 125,292
Proposed Rehab BUA sq.ft. 61,887
Passage and Amenity (Existing and Proposed) BUA sq.ft. 13,932
Proposed Rehab component sq.ft. 75,819
Permissible Sale component sq.ft. 75,819
Permissible Sale BUA in situ sq.ft. 63,405
Residential sq.ft. 56,224
Commercial sq.ft. 7,181
Total Fungible Area sq.ft. 21,080
Residential 35% 19,644
Commercial 20% 1,436
Total Sale BUA sq.ft. 84,485

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AREA STATEMENT – INDICATIVE SALE POTENTIAL

Area assumptions

Total Sale BUA sq.ft. 84,485

Sale Carpet area 12% 74,347

Total Saleable area 50% 111,521

Less: Commitments sq.ft. 12,713

Net Saleable area sq.ft. 98,808

Residential (Free sale building) sq.ft. 72,348

Residential (rehab building) sq.ft. 16,586

Commercial sq.ft. 9,875

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Micro Market Overview

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NORTH MUMBAI: MICRO-MARKET OVERVIEW

Extended Suburbs
 North Mumbai (suburbs) in the city and consist of Bandra,
Khar, Santacruz, Andheri

 The micro market is connected to the CBD districts of Thane

Western Suburbs - 2
Mumbai via the Western Express Highway – Sea Link and
to the Eastern Suburbs via JVLR, SCLR

 These suburbs are primarily a residential area, which have

seen immense growth in the commercial market in recent Western Suburbs - 1
years
Eastern Navi
 Predominantly, being a residential area, there are a Suburbs Mumbai
number of schools, colleges, hospitals in close vicinity
North Mumbai
 New Infrastructural initiatives viz. Metro rail, coastal road
will further enhance the outlook for this micro-market

 Metro-rail in particular is expected to add immense value South Central Mumbai

and visibility to this area as it makes commuting to several
dense/ congested and distantly located pockets of the city
conveniently accessible.

 Santacruz East is a mixed use catchment with BKC in close Prime South Mumbai
proximity

 Increasing volume of commercial activity is gaining ground

in this area as rentals in BKC drive north

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CONNECTIVITY: CENTRAL LOCATION OFFERING EASY
CONNECTIVITY TO KEY PLACES

1 Western Express Highway 1.5

2 SCLR 2.2
3 Santacruz railway station 2.9
4 Bandra Worli Sea Link 6.8
5 Proposed Metro 2A & 2B --
6 Proposed Metro 3 --

 The Property is located amidst an enhancing

mixed use catchment
 Business hubs viz. Andheri East, BKC, Lower Parel
and Elphinstone are conveniently accessible
through the developed infrastructure enhance the
premium commanded by the location
 Developed social infrastructure (school/ colleges,
hospitals, etc.) in the vicinity improve the
dynamics of the location
 Upcoming Metro projects will further enhance
connectivity with other micro-markets in the city,
significantly reducing travel time even during
peak business hours

Subject Site
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COMPARABLE RESIDENTIAL PROJECTS (1/2)

Saleable Price*
# Project Developer Location Expected possession
(INR p.s.f.)

1 Richa Bougainvilla Richa Realtors Kalina 19,950 Under Construction

2 Satra Wings Satra Properties Santa Cruz (E) 18,100 Under Construction
3 Sumit Artista Sumit Woods Santa Cruz (E) 19,500 Ready
4 M Baria Violet M Baria Developers Santa Cruz (E) 15,000 Under Construction
5 Kalpataru Primus Kalpataru Santa Cruz (E) 19,200 Under Construction

*Market quotes of Sale price (INR p.s.f. of saleable area)

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COMPARABLE RESIDENTIAL PROJECTS (2/2)

# Project Location

1 Richa Bougainvilla Kalina

2 Satra Wings Santa Cruz (E)
4
3 Sumit Artista Santa Cruz (E)
5
4 M Baria Violet Santa Cruz (E) 1 2
3
5 Kalpataru Primus Santa Cruz (E)

Subject Site
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Highlights
HIGHLIGHTS

 Major approvals including IOA & LOI are in place

 Limited availability of land in the micro-market

 Promising diversified area (Residential and Commercial catchments) in the Western

Suburbs of Mumbai

 Business districts like BKC are in close proximity

 Limited Tenant risk; Tenant/ tenement negotiations have been concluded

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Benefits of SRS
BENEFITS OF SRS

Slum Rehabilitation scheme popularly known as SRS is a slow but effective way of eliminating slums from face of Mumbai . As
per Mumbai latest census more than 9 million people live in slums that is around 41.3% of Mumbai population. Mumbai hosts
world’s second largest slum, the Dharavi slum ( at first rank is Orangi slum in Karachi, Pakistan ). The area under Dharavi slum
is around 535 acres . Mumbai have around 2397 slum settlements which have residential , retail shops and small scale
industries. Total estimated value of these slums in Mumbai as per latest survey conducted by a leading newspaper is about
Rupees 1 lakh crore. Inspite of such high value of land these 2397 slum clusters live in unhygienic, deplorable, unsafe huts or
shanties. These slums have come up on private lands, State Government lands, Municipal Corporation lands, Central
Government lands and Housing Board lands. These slums area mostly home for mafia & underworld ,some of these slums
areas area even made inaccessible to police and civil bodies .

As a solution to this growing menace, Initially in year 1970 it was decided to clear off the slums by demolishing the structures
and reinstating the land, this solution of using force was not only impractical but inhuman, government soon realised that
these people are now integral part of city’s migrant labour class. Since than number of schemes along with world bank and
central government support Maharashtra government is trying to tackle the rising issue of slums. Eventually in the year 1995
SRA ,Slum Rehabilitation Authority was created, it is an autonomous body a direct initiative by Government of Maharashtra
headed by Chief Minister of Maharashtra, it has launched a comprehensive slum rehabilitation scheme by introducing an
innovative concept of using land· as a resource and allowing incentive floor space index (FSI) in the form of tenements for sale
in the open market. The development is can be allotted a whooping FSI of 4 in some cases as per density to make it a lucrative
proposal for city developers.

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BENEFITS OF SRS

Creation of SRA ,a powerful regulatory body which is chaired by State’s Chief Minister and plays a important part in driving
effectively the proposed scheme . SRA is delegated IAS Officer, a full-time Chief Executive Officer of the Authority. The
members include Ministers, elected member of the State Legislature, Secretaries of concern State Government Department
and some non-official members.

The powers, duties and functions of the Slum Rehabilitation Authority are :

 To survey and review existing position regarding Slum areas in greater Mumbai.

 To formulate schemes for rehabilitation of slum areas.

 To get the slum rehabilitation scheme implemented.

 To do all such other acts and things as may be necessary for achieving the objective of rehabilitation of slums.

The process entails slum members first organizing themselves into co-operatives societies. They then vote to award a
property developer the mandate to re-house them onsite in “SRA regulated” high-rise buildings approximately half the site
they currently occupy all. There is also a criteria as of eligible and non-eligible occupants of slums. The owner of the
hutments before year 2000 are considered eligible otherwise he will not be allotted a new residence. The rehabilitation also
includes compensation for temporary relocation of about three years, during building construction. Once completed, each
family receives by lottery system official house with legal title and moves into its stipulated 25 Sq.mt apartment or 20.90
sq.mt commercial equivalent as earlier property holding, apartment includes a bathroom with tap water and a kitchenette.

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BENEFITS OF SRS

Looking at the size of the slums and governments efforts for decades to solve issue of slums, this solution of land incentive
seem a good solution for the present scenario. The layouts of SRA projects are approved from SRA office for both Rehab
and sale component. For the sale component Mumbai developers due to prime locations of the land are trying to give world
class amenities and trying position many projects at premium projects. Although the SRA building are constructed as on
adjacent land parcel but layouts are made to give different identities to both the developments. There are prominently four
stake holders in the development the slum dwellers, the Developer, Government and at bigger picture the Society.
Following are some of the points to be worth noting.

 Slum dwellers attain formal ownership rights to property and experience enhanced net worth achieved at zero cost.
The far superior standard of living and property title also brings with it social and financial inclusion benefits.
Maintenance of the allotted building is responsibility of the developer for 10 years .Likewise it is mandate for slum
dwellers who are allotted the apartment cannot sell the unit for 10 years.

 Investors gain access to projects in prime city locations. Moreover, slum rehab projects offer higher returns due to
lower capital requirement. The lower land acquisition cost essentially reduces the capital outlay by two-thirds.

 Government achieves the rehabilitation of slums and encroachment. It also achieves its social objective of low-cost
housing at no cost to taxpayers. Needless to add, the government also generates revenue from premiums payable and
taxes levied.

 Society at large gains from improved infrastructure and, more importantly, increased housing stock at good locations
in supply-constrained Mumbai. In bigger picture we see people who were living in filthy unhygienic illegal places
conditions are being given a legal home with good sanitation. We see the results in next generation who will identify
themselves as belonging to good societies and hold a good self esteem.

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BENEFITS OF SRS

Although on paper it seems like a match made in heaven but implementing a SRA project is a big challenge in itself.
Dealing with slum people is a very tough task getting approvals ,evacuating land starting work, managing transits,
paying rents, all is exhaustive and a cash rich process. The developer starts earning much later after he has his sale
component of the project to take shape. Many big developers from Mumbai have although successfully completed the
projects, but there are lots of developers who have defaulted and projects are held midway, mostly it is due to lack of
funds . There are many permission and compliance need to be abided by the developer for the projects, failing so
there are heavy penalties laid. Inspite of all the issues it is seen that civic bodies are being supporting the SRA scheme
simply to improve city lines of the Mumbai. Overall till date SRA is only effective solution to clearance of slums and
increasing house stocks in always in in demand good location housing. Since it’s a win win for all well intentioned
developers and good willed slum societies are bound to be benefited.

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 Thank You
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