In a bonanza for residents of a Khar housing society, a
builder has been buying off their mid-sized flats, paying
each family between Rs. 4 crore and Rs. 5.5 crore. Mumbai-based
Parinee Developers claims to have shelled out this huge
amount for a one-BHK flat and Rs. 5 crore to Rs. 5.5 crore
for a two and-a-half-BHK in the three-decade-old Bharatiya
Bhavan Cooperative Housing Society (located at the corner
of 17th Road in Khar west).
Parinee plans to demolish the buildings and set up a high-end
residential tower. However, there is a word of caution from
real estate experts. They warn these huge amounts may send
wrong signals in the redevelopment market, unnecessarily
create hype and raise expectations of other housing societies
in the area. However, Parinee said it is paying this astronomical
price only because the society has utilised barely 40% of
its floor space index (FSI).
The developer has already bought out 20 of the 37 flats
in the society and said it is negotiating with the remaining
flat owners. "We are finalising the purchase of the
remaining 17 flats. Our acquisition cost for all the flats
is around Rs. 200 crore," said a spokesperson for the
developer.
The society has six buildings, each ground plus two floors,
spread over an area of 5,570 square yards (over an acre)
with ample open spaces and car parking. The one-BHKs have
a carpet area of between 580 to 625 sq. ft. while the two
BHKs are between 800 to 900 sq. ft. in size.
The Bharatiya Bhavan CGHS in Khar (west) has been on the
block for the past four years. In 2007, the society had
invited sealed bids from various developers and a Navi Mumbai-based
builder, APA, had offered Rs. 180 crore to the society.
There were several other leading builders in the fray, including
Tata Housing, Wadhwa Group, Naman Developers and Acme.
However, the builder subsequently withdrew the offer due
to recession and also because of infighting between two
groups of flat owners. Some residents thought that APA's
offer was not enough. The fight culminated in a legal battle
- Parinee Developer now claims it has helped resolve the
issue between the two groups. In 2006-07, a slew of housing
societies in the suburbs had received phenomenal offers
from developers if they agreed to redevelop their properties.
While some builders wanted flat owners to move out permanently
by paying them off handsomely, others agreed to rehouse
them in new and larger flats in the redeveloped property.
A real estate expert has a word of advice for housing society
residents, "Don't get greedy. Stick to only prominent
developers who have delivered in the past." The expert
further said some unknown builders in the past had offered
astronomical prices to housing societies, even outbidding
the big guns in the industry. These shady builders are just
fronts for some politicians who want to roll their black
money in real estate. Housing societies should stay miles
away from such builders, he warned.
Source: June 23rd 2010, Magicbricks.com
