Redevelopment Project

in Navi Mumbai

Project Management
Kirti Naidu
Nikhil Golatkar
Shruti Gagangras
Shruti Kalkundre
Sanket Shetye
 Contents

• What is redevelopment ?
• Redevelopment process
• Pre feasibility
• Feasibility study
• Case study Process – Project details
• Project financial feasibility
• Financial benefits to society
• Project timeline
• CPM implementation
• Advantages
• Challenges
• Conclusion
 Residential Building Redevelopment

What is redevelopment and why is it needed?

Redevelopment is process of re-construction of existing old building that

benefits :

Existing society Developer : Society or City : Helps in

members : external private creating new
Construction new flats developers with profit housing stock for
free of cost with by utilising balance FSI the city
additional benefits for sale component
such as new amenities
and extra carpet area
 Redevelopment Process

Structural Audit

Preparation of financial feasibility

report

Finalization of developer

Preparation of development
agreement

Finalization of building plans

 Redevelopment Process

Obtaining the necessary

permission.

Obtaining Commencement
Certificate (CC). Vacating the
building

Demolition and reconstruction of

building

Possession and occupation of

building
 Pre-feasibility

Objective: To determine whether the project idea needs further

investigation and what aspects of the project are critical to its viability.

Scope: An overview of the project proposal is furnished. Complete

details not presented.

Information expected from Report: Location and site, Market survey,

implementation, Financial analysis, Project financing, Investment,
Construction costs, profitability.

Time Spent: Short duration ranging from one to two weeks.

Accuracy of Information Gathered: About 60% to 70% generally.

 Pre-feasibility

Initial Meeting with the society members to discuss project details and
needs

Land and Project evaluation

• Zoning | Land Use
• Traffic and access points
• Sewage and water supply etc..

Competitive summary of new projects and similar existing redevelopment

projects in the vicinity

Market Analysis
• Age of demographic & target market
• Population of surrounding area and trends including projected growth
• Income statistics

Financial Analysis
• Revenue projections
• Budget Expenses
• Operating projections
 Feasibility Study Report

Objective: To determine the true profitability of the project and work on

details.

Scope: Maximum coverage of the project proposal as decision is based

on the economic feasibility – like financial feasibility, commercial viability,
organizational support, etc.

Information expected from Report: Studying existing building plans,

consumed FSI, carpet area of existing members & available TDR/
additional FSI benefits.

Time Spent: Short duration ranging from one to two months.

Cost Involvement: Minimal

Accuracy of Information Gathered: About 60% to 70% generally.

Case study – Redevelopment of G + 2 building

Location :Plot 162, Sector 4,

Ulwe, Navi Mumbai

Site: G+2 Residential Building

Plot Area : 380 sqm

 Project Details
Plot Area (380 sq. m) 4090 sq. ft

Existing Built Up Area 3500 sq. ft

Number of existing tenements 10 flats

Existing carpet area for 1RK 225 sq. ft

Number of floors G+2

Redevelopment Proposal

Plot Area (380 sq. m) 4090 sq. ft

10,814 sq.
Proposed (BUA)
ft
Proposed Tenements 22 flats
Proposed carpet area
300 sq. ft
for existing members
Number of floors G+ 4
Redevelopment Proposal
Sell price sheet
 A. Project Construction Cost

Built up Area and FSI calculations

Description Area (sqft)

Plot area of existing building (380 sq. 4090

m)

Built up Area (BUA) = Plot area x FSI 4090 x 1.5 = 6135 FSI available 1.5

Total BUA = BUA x loading 10,814 Loading involves additional

6135 x 1.66 spaces for lobby, staircase, lift,
terrace. Whose cost builder
cannot take from the homebuyers

Saleable area x Construction cost per sq. ft = Total construction cost

10,814 x 1350 = 1,45,98,900

(Including labour
and material) i.e. 1.459 crore
 Total Project Expenses
Sr. Rate per sq. ft Rate per sq. ft Area (sq. ft) Cost (INR)
No.
A. Construction Cost 1350 10,814 1,45,98,900
B. Demolition Cost 250 3500 8,75,000

C. Developer to tenant

Rent 5000 24 months x 10 flats 12,00,000

Deposit 15000 10 flats 1,50,000

Brokerage 5000 10 flats 50,000

Sub Total 14,00,000

D. Corpus fund 30,00,000

E. Sanctioning, Project 150 10,814 16,22,100

Approval, RERA registration

F. Architect Fees 20 10,814 2,16,280

G. Structural Engineer Fees 5 10,814 54,070

Grand Total 2,17,66,350

 Project Sale
Break up of total BUA i.e. 10,814
Description Number of Built Up Area Total area
units (flats) (sqft) (sqft)

Existing society members (Rehab 10 535* 5350

component )

New Flats 1RK 4 300 1200

New Flats 1BHK 8 535 4280

*Consider a G+2 building having 10 1RK flats of 250 sq. ft carpet area.
Tenants will be getting additional 35% carpet area viz. approx. 340 to 350 sq. ft carpet = approx. 535 BUA

4 units of 1RK 24,15,000 96,60,000

8 units of 1BHK 43,06,750 3,44,54,000

Total selling price 4,41,14,000 i.e. 4.41 crore

 Project Profit

Description INR

Project Sale 4,41,14,000

Project expenses 21,766,350

Profit = Total selling price- Grand total 2,23,47,650

Project Sale - Project expenses = Profit

4,41,14,000 - 21,766,350 = 2,23,47,650

i.e. 2.2 crore

102% profit for the developer

 Gross financial benefits to the society
due to redevelopment
SR.NO DESCRIPTION AMOUNT(In Rs)
Savings due to eliminating the Cost of Major
01. Repairs @ Rs 150 Per Sq. ft = 150 x 3500 = Rs 525000
5,25,000
Cost of construction of new building @ Rs 1350 Per
02. Sq. ft of construction area = 10814 x 1350 = Rs 14598900
1,45,98,900
Cost towards the B.M.C. outgoings for the
constructing new building @ Rs 150/- Per Sq. ft of
03. 1622100
construction area = 10814 x 150 = 16,22,100/-

Cost towards temporary accommodation at Rs 1400000

04.
month per Sq. ft for 24 months = 14,00,000
Free Additional Carpet Area of Minimum 75 Sq. ft
Per Member x 10 = 750 sq. ft Therefore increase in
05. 6037500
valuation of property = 750 x 8050 (Earlier area
225sq ft)
06. CORPUS FUND offered by Builder 3000000

TOTAL FINANCIAL GAIN TO THE SOCIETY 3,32,21,000

 Duration of Project
Flow Activity M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12

1
Structural audit
2 Preparation of feasibility report

5 Finalization of developer & Preparation of

development agreement & Finalization of
building plans
6 Vacating existing building
7 Demolition & Site cleaning

8 Site demarcation and survey from

respective authority

9 Finalization of plans with architect along

with area statement & Submission of
plansand making revisions in plans if
suggested by the authority
10 Approval and sanctioning procedure
 Duration of Project
Flow Activity M13 M14 M15 M16 M17 M18 M19 M20 M21 M22
11 Receiving commencement certifcate(C.C)

12 Appointing structural engineer and getting

necessary documents for further process
13
RERA registration

14 Getting coulmn positions and sizes for

marking centreline on site

15 Architect to prepare centreline drawing and

to mark accordingly on site
16 Construction of foundation and plinth level

17 Plinth approval and receiving plinth

completion certificate from the authority
18 Construction of 2 slabs

19 Habital Floor Completion Certificate i.e.

HFCC from the authority

20 Constructing remaining 3 slabs &

Construction of blockwork/brickwork/walls
 Duration of Project

Flow Activity M23 M24 M25 M26 M27 M28 M29

21
External plaster & Internal plaster

22 Completion of tiling work & Windows, door and

sanitary fittings & Electrification work and plumbing
work

23 Installation of balcony railings and staircase railing &

Internal and external paint work

24
Ground floor pavement blocks & Cleaning
25
Applying and receiving occupational certificate (O.C)
 Duration of Project

Flow Activity M 18 M 19 M 20 M 21 M 22 M 23 M 24 M 25 M 26 M 27 M 28 M 29 M 30
18 Construction of 2 slabs

19 Habital Floor Completion Certificate i.e.

HFCC from the authority

20 Constructing remaining 3 slabs &

Construction of
blockwork/brickwork/walls
21 External plaster & Internal plaster

22 Completion of tiling work & Windows,

door and sanitory fittings & Electrification
work and plumbing work

23 Installation of balcony railings and

staircase railing & Internal and external
paint work

24 Ground floor pavement blocks &

Cleaning

25 Applying and receiving occupational

certificate (O.C)
Network Diagram
CPM Network Diagram
CPM Network Diagram
 Advantages

• Better planned and designed flats with earthquake structure having attached
bathrooms in bedrooms.

• Corpus fund received will take care of the increase in the maintenance cost of the
Premises or could be utilized for some other purposes.

• An additional area of 25-30% will be received as compensation from the Developer.

• Also, additional space, if available, could be purchased from the Developer at best
available price.

• Modern facilities/ amenities/gadgets like lifts, smoke detectors, firefighting alarm

system, concealed plumbing, concealed wiring for electricity, telephone, cable TV,
etc. will be available etc.

• Stilt parking will fix the parking issue and shall ease space on the ground. This will
provide open space for kids playing.

• Well designed and constructed access roads will be provided.

 Challenges
• The Development Agreement that forms the basis of a “Redevelopment Project” is
required to be drafted by a professional keeping in mind the safety and security of all
the members.

• Any lacuna in the preparation of this deed may result in great loss for the members
who are eligible to many perks in consideration of giving permission for this project.

• All the members of the Society have to be satisfied with all the plans of proposed by
the Builder/Developer.

• For a considerable period of time members have to hunt for accommodation and
stay in another place which disrupts their age old routine;

• Additional new members would take a longer time to adjust to the existing original
members, resulting in disputes on various issues.

• New constructions equipped with all kinds of latest amenities in turn increase the cost
of maintenance to be paid to the Society.
 Challenges
• The tax burden is high and in case the Occupation Certificate (OC) is not procured,
then the BMC Charges and Water Charges are very high.

• Additional members will require extra consumption of water creating scarcity or

shortage of available water supply.

• Additional vehicles need extra space.

• Additional area purchased is at current market value, which attracts Stamp Duty and
Registration Charges.

• In the event, the redevelopment project remains incomplete, it gives rise to

litigations.
 Conclusion
• Redevelopment of properties of existing societies has been a subject of great interest in recent
years, both to the societies and to the developer.

• Redevelopment has become quite popular since it is a most practical , economical and long
term solution in a scenario where old structures are proving uneconomical and obsolete.

• For developers it is a cost effective way to construct residential/commercial premises by utilizing

the unused potential i.e. the FSI,TDR with gradual capital investment, in times of heavy land
prices and in a situation of unavailability of land in good locations.

• Redevelopment arrangement begins with the conception of an idea to redevelop and it ends
with the handing over of the agreed constructed area and the corpus fund or other monetary
considerations to the society by the developer.

• Developers, on their part, are also on the lookout for properties with unused development rights
where they can build a new structure of a few storey higher and sell those additional flats for a
tidy profit for them.

• While it may sound like a typical ‘win-win situation, the process of redevelopment isn’t as easy as
it sounds.

• It comes with a set of rules, guidelines, procedures and implications which are to be followed
considering the property of many residents is at stake.
Thank You