Mumbai: Real estate services provider Housing Development & Infrastructure Ltd (HDIL) has received government approval to develop a slum rehabilitation project in Mumbai, a top official told Reuters.
“We have received approval for Santacruz West Rehabilitation Project. It’s 1.2 million of sale area, and 0.7 million of rehabilitation area,” managing director Sarang Wadhawan said.
At an estimated cost of Rs12,000-15,000 per square feet, the value will be around Rs2000 crore, he said.
The project does not have any Transfer Development Rights (TDR) portion, Wadhawan added.
In a statement, the company said it expects to begin construction within the next 3 months.
“I think this is a 4-5 year project, but essentially very lucrative for the company because the per-square-feet values in that area are very high compared to the construction cost,” said Bhaskar Chakraborty, vice president of institutional equities at IIFL, a unit of India Infoline Ltd.
“I think they will significantly benefit even on a conservative basis, this adds to around Rs18-20 per share to HDIL’s NAV (net asset value),” he added.
HDIL shares closed unchanged at Rs314.40 on BSE, which rose 1.2% on Wednesday.