BackDB Realty partners Radius Developers to redevelop MIG project in Bandra
The project is expected to launch on 14 October and is likely to complete in the next three years
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Bengaluru/Mumbai: Mumbai-based DB Realty, which has a huge pipeline of projects, is taking the joint venture (JV) route to speed up construction and reduce costs.
Five years after it agreed to redevelop the five-acre MIG housing colony in suburban Mumbai’s Bandra (east) area, the company has partnered Radius Developers for the same. DB Realty has retained 51% stake in the project, while Radius Developers will own the rest.
On Thursday, DB Realty said it will redevelop the MIG project with an investment of R340 crore.
In a filing to the National Stock Exchange, DB Realty said it has received approvals to redevelop the property for which demolition work has already commenced. The project is expected to launch on 14 October and is likely to complete in the next three years.
In June, DB Realty signed another JV for its DB Skypark project in suburban Andheri. The firm now has 75% stake in the project, for which it has partnered ECC and Konark.
“Construction of the MIG project should begin in a month’s time. The selling price of the apartments in the project will be in the range of ₹ 28,000-30,000 a sq ft," said Sanjay Chhabria, managing director of Radius Developers.
DB Realty, through its subsidiary MIG (Bandra) Realtors & Builders Ltd, entered into a development agreement with MIG Co-operative Housing Society for the redevelopment project on 10 October 2010. The total built-up area is expected to be over 2.6 million sq. ft.
The company said it has received height approval for constructing a 29-storey tower from the Airport Authority of India. Radius Developers was founded last year by Chhabria, who was earlier managing director of Mumbai-based Wadhwa Group. The company’s strategy is to take up projects in the city and Pune that have been stuck for several reasons. Chhabria plans to launch or re-launch these projects under the Radius brand, market and sell them and enter into a profit-sharing agreement with the existing developer through a joint venture.
Separately, a DB Realty Ltd joint venture firm Conwood DB has entered into a revenue sharing partnership with Man Vastucon LLP to develop a plot of land in suburban Mumbai’s Dahisar area.
Man Vastucon will undertake the development of the property, which will build residences, and share the gross sales realization with Conwood DB in the agreed ratio, Man Vastucon told BSE.
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