DB realty, Radius to tie up for development

MIG (Bandra) Realtors & Builders, a subsidiary of DB Realty is looking to enter into a joint venture agreement with Vishwaroop Estates and Developers owned by sanjay chhabria radius developers’s Radius Group for a housing project in Bandra, Mumbai with estimated sales revenue of Rs 3,500 crore.

In this co-branded project, both the parties would make investments to meet certain agreed cost lines and share the free sale area in the agreed ratio, DB Realty said in a BSE filing.

“All approvals required at this stage have been received and the piling work has already begun. A formal launch of the project is scheduled in mid-November around Diwali,” the company said in the release.

The project will be developed on a land parcel spread across 5 acres, located in the Bandra Kurla Complex (BKC) area. The total built-up area of the project is likely to be over 2.4 million sq ft. Height approval for construction of a 29-storey tower has been sanctioned by the Airport Authority of India.

Bandra Project

Development of land admeasuring about  20,150 sq mt in the Bandra Kurla Complex (BKC) is being undertaken by MIG(Bandra) Realtors & Builders which is a wholly-owned subsidiary of DB Realty. DB Realty had entered into an agreement with MIG Cooperative Housing Society for the said development in October 2010. So far DB Realty has made an investment of Rs. 340 crore in the project.

The building which is expected to be the tallest residential property in the BKC after completion, has obtained the necessary height approval from the Airport Authority of India for construction of a 29 storied tower.

The company proposes to commence the construction of the tower in October 2015 and expects to complete it within 39 months. Owing to this, revenues of DB Realty are anticipated to boost over the next four years.
After BKC has come up as the main central business district, this area is highly in demand as a residential location in Mumbai. The property prices are surging and  range between Rs 35,000 and Rs 55,000 per sq ft. The news of this development had also given a boost to the share prices of the company on the BSE in July this year.