DB Realty, Radius Tie-Up to Develop Rs 3,500 Cr Project

DB Realty today said it will form a joint venture with Radius group to develop a housing project
in Mumbai with an estimated sales revenue of Rs 3,500 crore.

Mumbai-based DB Realty said that its subsidiary MIG (Bandra) Realtors & Builders is “proposing to enter into a joint venture agreement with Vishwaroop Estates and Developers (part of Radius Group, a Sanjay Chhabria venture)” for the development of a project at Bandra.

Radius group is also into real estate business based out of Mumbai.

“…both the parties would make investments to meet certain agreed cost lines and share the free sale area in the agreed ratio. The project will be co-branded,” DB Realty said in a BSE filing.

“The revenue from the project on completion is expected to be in the region of Rs 3,500 crore,” it added. The total built-up area of the project is expected to be over 2.4 million sq ft.

“The project land is completely vacant and piling work has commenced. All approvals required at this stage have been received and a formal launch of the project is scheduled in mid-November around Diwali,” the company said.

In July, DB Realty had informed BSE that it has started development of this land parcel spread across 20,150 sq meter (about 5 acres) located near Bandra Kurla Complex (BKC).

The company had entered into development agreement with MIG Co-operative Housing Society Ltd in October 2010 for the development of the land. As per the agreement, the Society had handed over the buildings to the company. The demolition of the buildings commenced on July 1 this year.

“The project has received height approval for construction of a 29-storey tower from the Airport Authority of India and upon completion the building is expected to be the tallest residential building in the BKC/bandra (East) area,” DB Realty had informed in the regulatory filing.

PTI