Activity 1 Report Final - Mahalaxmi

Commercial Development of Railway Land at Mahalaxmi
COMMERCIAL DEVELOPMENT OF VACANT

RAILWAY LAND AT MAHALAXMI
RAIL LAND DEVELOPMENT AUTHORITY
A c t i v i t y - 1 : F i n a l R e p o r t |2015
Submitted To:
Rail Land Development Authority,
Near Safdarjung Railway Station,
Moti Bagh-1, New Delhi - 110021
Submitted by:
a’XYKno Capital Service Limited,
Leela Vista, Level - 3, WHC Road,
Bajaj Nagar, Nagpur - 440 010
a’XYKno Capital Services Limited 1

Table of Contents
1 Introduction....................................................................................................... 10
1.1 Project Background ....................................................................................................... 10
1.2 Rail Land Development Authority (RLDA)...................................................................... 10
1.3 A’XYKno Capital Services Ltd........................................................................................ 10
1.4 The Project .................................................................................................................... 12
1.5 Objective of Draft Report ............................................................................................... 13
1.6 Role of a’XYKno Capital Services Ltd. ........................................................................... 14
1.7 Role of RLDA ................................................................................................................. 17
2 Methodology ..................................................................................................... 20
2.1 Project Preparatory and Development Activities ............................................................ 20
2.2 Preparing Bid / Contract documents .............................................................................. 21
2.3 Marketing of the Project ................................................................................................. 22
2.4 Bid Process Management .............................................................................................. 22
2.5 Technical close of the project ........................................................................................ 23
2.6 Monitoring during Project Development/ Implementation .............................................. 23
3 City Profile ........................................................................................................ 25

3.1 Introduction .................................................................................................................... 25
3.2 Demographic Profile ...................................................................................................... 25
3.3 Connectivity ................................................................................................................... 26
4 Site Appreciation .............................................................................................. 29

4.1 Site Location .................................................................................................................. 29
4.2 Connectivity ................................................................................................................... 30
4.3 CTS No. and Ownership Status ..................................................................................... 32
4.4 Site and its Surrounding ................................................................................................ 33
4.5 Encroachment................................................................................................................ 38
4.6 Land Use as per Sanctioned Revised DP ...................................................................... 39

4.7 Development Plan Remarks .......................................................................................... 41
4.8 Permissible Activities ..................................................................................................... 41
4.9 Procedure for change of Land Use ................................................................................ 42
4.10 FSI (Floor Space Index) ............................................................................................. 42
4.11 TRD (Transfer of Development Rights) ..................................................................... 43
4.12 Ready Reckoner Rate (2014) .................................................................................... 43
4.13 SWOT Analysis.......................................................................................................... 46
4.14 Regulatory Details ..................................................................................................... 47
5 Development Trend & Demand Assessment .................................................. 49

5.1 Introduction .................................................................................................................... 49
5.2 Development Trend ....................................................................................................... 49
5.3 Perception Survey ......................................................................................................... 53
5.4 Product Mix Derivation ................................................................................................... 53
5.5 Conclusion ..................................................................................................................... 54
6 Financial Analysis ............................................................................................ 56

6.1 Feasibility Analysis ........................................................................................................ 56
6.2 Proposed Options for Development ............................................................................... 56
6.3 Option 1: Development of Commercial Complex (General Commercial Development) . 57
6.4 Option 2: Development of Building of Government and semi-government offices and

public sector undertaking .......................................................................................................... 61
6.5 Option 3: Development of 5 Star Category Hotel ........................................................... 66
6.6 Feasibility Analysis Recommendations .......................................................................... 71
7 Way Forward ..................................................................................................... 73

List of Tables
Table 4-1: Distance of major landmark and key features from project site ........................................... 32
Table 4-2: Development Plan remarks for Mahalaxmi Site................................................................... 41
Table 4-3: Ready Reckoner Rate for project site .................................................................................. 43
Table 4-4: Regulatory details for project site ........................................................................................ 47
Table 5-1: Lease Rental of Commercial Building around project site ................................................... 50
Table 5-2: Hospitality development around project site ........................................................................ 51
Table 5-3: Market Price and Rental for Residential Buildings around project site ................................ 52
Table 5-4: Perception Survey for Project Site....................................................................................... 53
Table 5-5: Product Mix Derivation for Project Site ................................................................................ 53

List of Figures
Figure 4-1: Location Map of Mahalaxmi Site ........................................................................................ 29

Figure 4-2: Metro Rail Route ................................................................................................................ 30
Figure 4-3: Mono Rail Route ................................................................................................................ 31
Figure 4-4: Property Card ..................................................................................................................... 33
Figure 4-5: Site and Surrounding ......................................................................................................... 34
Figure 4-6: Site Plan of Mahalaxmi Site as provided by RLDA ............................................................. 36
Figure 4-7: Topographic Survey Map of Mahalaxmi Site ...................................................................... 37
Figure 4-8: Development Plan remarks for Mahalaxmi Site ................................................................. 40
Figure 4-9: Location of Site in Lower Parel Division as per Ready Reckoner (2014) ........................... 44
Figure 4-10: Rate of the site as per Ready Reckoner (2014) ............................................................... 45
Figure 5-1: Commercial Development around the Project Site ............................................................. 49
Figure 5-2: Hospitality Development around the Project Site ............................................................... 50
Figure 5-3: Residential Development around the Project Site .............................................................. 52

List of Appendix
Appendix 4.1: Development Plan Remarks
Appendix 5.1: Contact details of Stakeholders

Disclaimer
This is an internal document and is intended for the sole use of the Client “Rail Land Development
Authority”. The information in this Report has been prepared based on information collected from
primary & secondary sources, factual information made available and consultations with the client,
designated officers and the other stakeholders involved in the project. Wherever information was not
readily available, reasonable assumptions have been made, in good faith to draw meaningful
inferences and these have been mentioned in the respective sections of the report. All such
assumptions are subject to further corroboration based on availability of information. The information
and analysis presented in this Report is not and does not purport to be comprehensive or to have been
independently verified.
This report has been prepared by a’XYKno Capital Services Ltd for its client, RLDA for its use for
furthering the project. No external agency shall use any part of this report without the prior permission
from RLDA and a’XYKno. The information contained in this Report is strictly confidential for the client’s
use only and is specific to the particular project under specific circumstances and is not considered
replicable or suitable for other projects. The information and the report are also subject to updating,
expansion, revision and amendment. It does not, and does not purport to, contain all the information
that may be required. This Report includes certain statements, estimates, projections and forecasts.
Such statements, estimates, projections, targets and forecasts are based on the information provided
by the concerned authorities and reasonable assumptions made by the management and employees
of a’XYKno Capital Services Ltd. No representation or warranty is given as to the reasonableness of
estimates or the assumptions on which they may be based and nothing in this Report is, or should be
relied on as, a promise, representation or warranty. The Consultant absolves itself from investments
done on basis of this report. No part of the document shall be reproduced or utilized without prior
permission of the Client and the Consultant.

List of abbreviations
a’XYKno a’XYKno Capital Services Ltd.

BMC Brihanmumbai Municipal Corporation
DBFOT Design Built Finance Operate Transfer
EoI Expression of Interest
JV Joint Venture
MoEF Ministry of Environment and Forest
NH National Highway
PIM Project Information Memorandum
PPP Public Private Partnership
RFP Request for Proposal
RFQ Request for Qualification
RLDA Rail Land Development Authority
SPV Special Purpose Vehicle
TCPD Town and Country Planning Department
TDR Transfer of Development Rights

1 Introduction

1 Introduction
1.1 Project Background
Indian Railways (IR) possesses huge land bank which is lying vacant all over India. This land bank is in
form of small plots to huge land parcels and in addition air spaces of Station buildings/Service Building
etc. Land which is not required for operational purposes in the near future is entrusted to RLDA by
Railway Board for commercial development.
Two of such vacant land parcels located at Mahalaxmi and Wadala in Mumbai are entrusted to RLDA
for commercial development. In this regard, Office of the Vice Chairman, Rail Land Development
Authority (RLDA) Delhi issued tender document for selection of consultant for the Preparation of
Feasibility study and Bid process management for “Commercial Development of Railway Land at
Mahalaxmi and Wadala, Mumbai under BCT Division, Western Railway”.
Subsequently after duly following the tender process, RLDA has appointed a’XYKno Capital Services
Limited as Consultant for undertaking the feasibility study and Bid process management for Mahalaxmi
and Wadala sites.
1.2 Rail Land Development Authority (RLDA)
Rail Land Development Authority (RLDA) is a statutory Authority, under the Ministry of Railways, set-up
by an Amendment to the Railways Act, 1989, for development of vacant Railway Land for commercial
use for the purpose of generating revenue by non-tariff measures.
Indian Railways (IR) has approximately 43,000 hectares of vacant land. Land which is not required for
operational purposes in the foreseeable future is identified by the zonal railways and the details thereof
are advised to Railway Board. Such plots of land are thereafter entrusted to RLDA by Railway Board for
commercial development.
1.3 A’XYKno Capital Services Ltd.
a'XYKno Capital Services Limited is a consulting powerhouse; having strong presence in Investment
Banking, Government Advisory & implementing Public Private Partnership (PPP's) and Project
Management Advisory.

a’XYKno have successfully completed deals for many Corporate and Government Corporations in the
Energy and Natural Resources & Infrastructure space both in India & abroad in a time bound manner.
The firm has a unique ability of interfacing financial, legal & sectoral expertise to the maximum benefit
of our clients.
Services offered in Government Advisory
1. PPP Implementation
2. Assisting the clients in obtaining various approvals and pre development clearances
3. Undertaking Pre-Feasibility & Feasibility studies
4. Preparing business plans and marketing to private investors
5. Detailed Financial Modelling and Structuring
6. Bid Management for PPP as well as non PPP transactions.
7. Assistance in signing of Concession Agreements and other legal agreements with private
developers
8. Project Management Consultancy till successful project completion across all sectors
9. Concept to Commissioning Advisory in Urban Infrastructure, Transport, Tourism, Energy and

Natural resources verticals.
Services offered in Investment Banking & Financial Advisory
1. Capital & Debt Syndication
2. Private Equity Funding
3. Advisory for Business
4. Corporate & Financial Structuring / Re-structuring
5. Due-Diligence across sectors.
6. Mergers and Acquisition
7. Risk management services for credit decisions
8. Financial Re-Engineering, Financial Research & Analysis

1.4 The Project
Indian Railways is an Indian state-owned enterprise, owned and operated by the Government of India
through the Ministry of Railways. It is one of the world's largest railway networks comprising 115,000
km of track over a route of 65,436 km and 7,172 stations. In 2013-14, IR carried 8,425 million
passengers annually (more than 23 million passengers daily) and 1050.18 million tons of freight in the
year. In 2013–2014 Indian Railways had revenues of INR 1441.67 billion which consists of INR 375.0
billion from freight and INR 940.0 billion from passenger’s tickets.
There are many challenges faced by the Indian railways like:
Vast tracts of hinterland waiting for rail connectivity;
Surplus revenues declining (hardly any adequate resources for its development works);
Loss per passenger kilometre increased from 10 Paise per Km in 2000-01 to 23 Paise in 2012-
13;
Share of Railways in freight traffic coming down consistently;
INR 5 lakh crore required for ongoing projects alone;
Focus so far is on sanctioning more and more projects with inadequate prioritization rather than
completing them;
Most of Gross Traffic Receipts is spent on fuel, salary and pension, track & coach maintenance
and on safety works;
The surplus, after paying obligatory dividend and lease charges was INR 11,754 crore in 2007-
08 and is estimated to be INR 602 crore in the current financial year.
One of the main reason for the crippling financial position of Indian Railways can be attributed to the
fact that railways is expected to earn like a commercial enterprise but serve like a welfare organization.
Railways carry Social Service Obligation of more than INR 20,000 cr by carrying services below cost.
This is nearly 16.6% of GTR and is almost half of Railways Plan Outlay under budgetary sources.
In order to overcome this financial crises, the railways has taken some bold steps like recent fare and
tariff hike to mop additional revenue of about INR 8,000 cr and is also exploring alternate resource
mobilization through domestic investments and FDI in rail infrastructure and pursuing Public Private
Partnership.

In continuing this effort to consolidate the crippling financial position of railways, the Indian Railways is
transferring its vacant land parcels to RLDA for commercial development in order to generate additional
revenues by non-tariff measures. The land parcels at Mahalaxmi (9550 sq.m) is one of such land parcel
transferred to RLDA for commercial development through private developer. RLDA intends to find out
the best possible commercial use along with bid process management to engage a developer to
develop the said plot of land and in turn fetching revenues to Railways.
1.5 Objective of Draft Report
The objectives of this Draft Report for “Commercial development of railway land at Mahalaxmi under
BCT division, Western Railways” are as follows:
a) Due diligence of land i.e. Procurement of land records;

b) Undertaking the topographic survey of site to locate the land boundaries and also the extent of
redevelopment work required as well as details of encroachment, if any;
c) To ascertain the permitted land use of the site including FAR/FSI, possible Built-up Area as per
Master Plan/Zonal Plan, applicable DCR / byelaws and prevailing rules on obtaining TDR, Premium
FAR etc;
d) To ascertain the feasibility of change in land use if required, its process, financial implication and
likely time frame;
e) To gather the details of the concerned officials responsible / connected with land use / approval
process;
f) Details of clearances required for the proposed development on the site;
g) Determine the various possible real estate products (Product Mix) that can be developed at site
from the angle of high revenue yield to Railways/RLDA;
h) To ascertain circle rate of the land for various uses in the area, market rate and lease rental of built
up area of various uses;
i) To ascertain kind of transactions prevailing in the area, prevailing lease period, kind of leases given
by the authorities alongwith lease rates for such uses;
j) To determine lease period for the site for optimum revenue generation based on the trends in the
area; and
k) To ascertain approximate range of lease value that can be realized from the site for the proposed
development

1.6 Role of a’XYKno Capital Services Ltd.
The role of a’XYKno in development of the Project is as below:
Collection of data:
(a) Collection of details of Authenticated revenue records including history of the Railway Land either
from Railway or from Revenue Authorities/Municipal/Development Authorities, superimposing the
proposed Railway land with reference to revenue maps/records for identification of proposed and
existing area. Verification of Authenticated Revenue Records from the respective authorities, if not done
by Railways, with respect to availability of ownership title of the Railways.
(b) The Consultant shall collect relevant details, information data, reports, future plans, Master Plan
from the concerned local bodies/departments and from the market regarding present and proposed
planned development within the influence area of the site. These data should include but not be limited
to:
i. Master plans, zonal plans, building bye laws, development regulations, permitted land use and FSI at
the site, rules for obtaining premium FSI, TDR, etc, circle rates of land for various use in the area,
market rates as per past land deals,
ii. Details of similar residential/commercial developments in the vicinity/city,
iii. Contact addresses with phone numbers of real estate developers active in the city, concerned
officials of local bodies like Development Authority, Municipality, Forest department, Revenue Authority,
Environment office responsible for environmental clearance etc.
Site Appraisal and Rehabilitation/Redevelopment: The Consultant shall carry out appraisal of the
site with respect to its location, area, neighbourhood developments and physical infrastructure like
water supply, electricity, sewerages, roads highlighting its pluses and minuses for the proposed
commercial exploitation of the railway land. For sites having existing structures/buildings or
encroachment which need to be relocated/ rehabilitated within or outside the project site, the Consultant
shall appraise the work involved, requirements of the zonal railways and the legal provisions in the R&R
Act or other extant rules of the state government and prepare rehabilitation and relocation plans. The
selected developer shall be required to carry out these rehabilitation/relocation works as part of the
project development.

Consultant will ascertain requirement of widening/New Roads in consonance with proposed usage and
Master Plan. Present traffic flow and future impact due to requirement of widening/New Roads in
consonance with proposed usage and Master Plan on Railway system and adjoining roads by the
proposed development on the site.
NOC / Land use clearance / conversion from Local Authorities: All costs of the Consultant for its
personnel, travel and incidentals related to the approval process shall be deemed to be included in the
overall cost of consultancy and the success fee. However, all fees to be paid to the local authorities
shall be directly paid by RLDA. RLDA shall extend all necessary administrative support to the
Consultant for obtaining NOC/Land use clearance/ conversion.
Real Estate Market and Proposed Developments: As detailed in Activity-1, while doing diligence for
the product mix, the Consultant shall also highlight if phasing of construction or phasing of bidding at
the site is required and if so the details thereof. The Consultant shall also analyze various
developments in the vicinity and their impact on the proposed development on the subject site by
RLDA, impact of development control norms including the possibility of their modification for the subject
site should also be carried out.
Financial Model for Lease Premium: The Consultant shall develop a financial model for the project
for finding out the maximum lease premium (or percentage share of revenue) that a developer can
afford to pay ensuring minimum post tax Project Internal Rate of Return (IRR) of 18% and Equity
Internal Rate of Return (IRR) of 22.5%. While doing so, the Consultant shall follow the uniform financial
parameters provided by RLDA in terms of Clause 1.4 above. The Consultant should bring out various
assumptions for revenue, cost and others, including basis thereof, which are used by it in the financial
model. Financial model shall be prepared in MS Excel program and a simplified summary sheet of the
entire financial analysis should be prepared showing key data rows as: Year, Construction Cost,
Interest During Construction, Land Premium, Project Cost Equity, Debt, Capital Expenditure, Debt Due,
Total Revenues, Total Operational & Maintenance (O&M) Expenditure, Project Cash Flows, Pre Tax
Project Internal Rate of Return (IRR), Interest Payment, Depreciation for Corporate Tax, Corporate
Tax, Project Cash Flow After Tax, Project Internal Rate of Return (IRR) After Tax, Debt Repayment,
Equity Cash Flows, and Equity Internal Rate of Return (IRR) in that order.
Lease Period: The period of lease (for suggested development options) that is most optimum for
revenue generation and in the best interest of RLDA (Railways) with reasons may be provided within
the permissible limit of 30-45 years based on guidelines to be provided by RLDA as per clause 1.4
above.

Project Model: The Consultant shall suggest the most suitable project model among the list provided
at the Clause 4 for the proposed development at the site. While doing so the Consultant may suggest
modifications to the existing project models or a new project model that is required for the site. The
project model finally approved by RLDA shall form the basis for development of Bid documents for the
project.
Reserve Price: Based on the past and present market rates and circle rates of land collected in terms
of the Clause 3.1 duly taking suitable factors for discounting for lease deal, size and location of land,
and the lease premium computed from the financial analysis in terms of Clause 3.5 the Consultant shall
carry out a comparative analysis to verify the suitability or correctness of each of them and suggest
the reserve price to be adopted by RLDA for bidding.
Depending on the project model to be followed, the reserve price may be either in terms of total lease
premium payable in instalments or a percentage share of revenue to be offered to RLDA. In case of
payment of lease premium in instalments or for revenue share project models the Consultant shall use
the present value of guaranteed payment to RLDA at a discount rate of 15% for comparison purposes
with the market rate and the circle rate.
Marketing: The Consultant shall carry out requisite marketing exercise to elicit adequate response from
developers and other interested parties and provide a list of renowned developer/investors (with
addresses & phone nos.) for these sites whom the Consultant has contacted in the course of the study
as well as during the bidding process and who have indicated their interest in the proposed
development. The Consultant shall prepare and give presentations during pre-bid or other meetings
with developers, anchor the meetings and carry out other such necessary efforts for maximizing
participation by prospective developers in the bidding process. The Consultant shall submit a list of
developers likely to participate in the bid before the last date of submission of bid so that RLDA is
assured of adequate responses in the bid.
Tender Document and Bid Process: The draft development Agreement and lease deed for the
selected project model prepared by RLDA will be provided to the Consultant. The Consultant shall
prepare the Request for Proposal RFP document for the selected model with relevant changes based
on similar RFPs being adopted by RLDA for other sites. The Consultant shall interact and coordinate
with (the legal adviser of) RLDA for modification required for the project site and be responsible for
integration of all the parts and customization for the project site. The final draft of bid document shall
have to be legally vetted by an experienced and professionally qualified legal adviser in commercial
Contracts for the soundness and completeness of the bid documents. The Consultant shall also assist

RLDA in managing the bidding process. This would include (but not limited to) preparation and issue of
suitable advertisement (cost of which would be borne by RLDA), anchoring of pre-bid conferences(s),
assisting RLDA in responding to queries, short-listing of qualified Bidders, evaluating the bids received
and recommending selection of the developer.
(i) Negotiation and Execution of Development Agreement: The Consultant shall assist RLDA in
negotiations, finalization and entering into lease/authorization Agreement with the selected Bidder.
ii) The Consultant shall make due diligence to the Financial package and Financial model to achieve
Financial Close by developer as per RFP for the Commercial site.
Meeting with the RLDA: The consultancy requires close interaction with RLDA for timely inputs,
meeting and reviews, feedback/observation by RLDA. The Consultant shall actively associate in
RLDA’s reviews of various submissions and provide necessary clarifications, documents and back-up
information for conducting the reviews. The respective Key Personnel of the Consultant shall be
present in all important review meetings at RLDA office in Delhi as required by RLDA while other
support personnel assisting the Key Personnel in the consultancy may attend other meetings.
1.7 Role of RLDA
The role of RLDA in development and implementing the Project is as below:
Co-ordinate With Government Departments And Agencies
Coordinate with various Government departments and authorities, its departments and its agencies for
specific work and to facilitate the decisions and approvals on issues such as project clearances, project
agreements and fiscal concessions, if required.
Provision of Project related information
To share requisite information with the parties, as may be required by them from time to time, provide
the same if available with RLDA or any public agency of the state and central government.
Providing the land for project development
RLDA is willing to provide the land on long lease or any other accepted format for developing the
project on Design Finance Built Operate & Transfer (DBFOT)/ Built Operate & Transfer (BOT) basis for
developing the project with appropriate commercial terms to Private Sector Developer.

Ensuring encumbrance free land to the developer
RLDA ensures that the land provided for development would be encumbrance free for project
implementation. RLDA ensures that structures if any present on the site would be relocated before
awarding the project to the developer.

2 Methodology
a’XYKno Capital Services Limited , Nagpur 19

2 Methodology
2.1 Project Preparatory and Development Activities
(a) Inception Report
This is a critical phase involving establishing a concept for the development of project, methodology to
be followed, work plan preparation and timeline for various activities.
The assessment of the present situation of the area as well as understanding of the need of the city will
provide deep insights into the Inception report. The preliminary assessment of the site, its
neighbourhood, connectivity, location analysis, availability of physical infrastructure etc is carried out at
this stage. Apart from this, ascertaining the City Survey number, land title and ownership, present land
use and FSI, land value etc is undertaken at inception stage so as to be acquainted about the site in
total.
(b) Project feasibility Study
To establish initial feasibility and identification of critical issues, various studies and surveys shall be
conducted. Consultant will undertake this assignment on its own, by sourcing the appropriate skills /
resources available with its associates and also by way of appointing technical/specialized consultants
for various tasks/activities as was deemed necessary.
These studies and surveys would help establish the following for the project:
 Demand Assessment & Segmentation;

 Project components, sizing and support infrastructure;
 Identification of Development Mix;

 Common utilities and facilities required;
 Determining Project Phasing; and
 Project cost estimate and financial projections
A Market Survey Plan shall be drawn out and market surveys shall be conducted based on contacts in
the industry and more specifically participants in the commercial, retail and hotel industry in the local
geography to ascertain the effects of the proposed upcoming development on the city. The market

survey covers present & planned commercial complex, budget hotels, retail outlets etc in the vicinity of
the project site.
Based on above project configuration, a business plan shall be prepared for the project. The objective
of the business plan would be to estimate and present details of project costs, revenues and financial
viability of the project.
a’XYKno would bring on board, its vast Project financing and syndication experience to ensure that the
business plan for the Project finds ready acceptance with potential developers.
(c) Formulation of Project Implementation Structure
Given the risks and uncertainties that are usually encountered in such Projects, a’XYKno is working
closely with the RLDA in formulating an appropriate strategy for Project implementation and operations.
Implementation framework for the project components, based on the strategic considerations, skill sets
required versus available, revenue/risk/return potential etc, shall be established as under:
 Project to be developed by private sector directly under suitable arrangement like BOT, DBFOT,
DBTL etc.
 Any suitable funding mechanism for commercially unviable projects
(d) Preparation of Project Information Memorandum
Based on the feasibility study, business plan and agreed implementation structure, a separate
marketing document shall be created which becomes the part of Request for Proposal (RFP) and can
be circulated among the potential developers, stakeholders and anchors for early buy-in the project.
This shall be in the form of Project Information Memorandum (PIM). The objective of the PIM would be
to provide comprehensive information on the Project to facilitate comprehensive evaluation of the
business opportunity that the project presents. This would also help the developers in syndication of
finances. It would cover all the aspects that have been analyzed thus far and will be presented in a
summarized form.
2.2 Preparing Bid / Contract documents
a’XYKno would prepare Bid/Contract documents in consultation with RLDA and assist in the entire bid
management of the project.

(a) Preparation of Bid Documents
 Instructions to Tenders including bid evaluation criteria and formats for bid submission;
 Technical and Performance specifications;

 Agreements and Schedules; and
 Tender, RFP and Contract Agreements
(b) Pre-Bid Conference
 Attend pre-bid conference to assist RLDA in providing necessary clarifications;

 Assessing the results of pre-bid conference for operational, technical and risk issues and make
recommendations;
 Preparing responses to the questions raised by short-listed agencies; and
 Preparing amendment/corrigendum to the bid documents and issue to bidders.
2.3 Marketing of the Project
Marketing of such project is a specialized activity in itself and despite a large pent up demand for
commercial, residential, meeting, convention and hospitality; it requires a major thrust to ensure
success of the project.
a’XYKno would undertake a marketing exercise for the Project to generate market interest, obtain
feedback from potential investors that would be utilized while preparing the bidding documents, conduct
investors’ meeting and road shows etc. to ensure responsive bids.
2.4 Bid Process Management
a’XYKno would carry out the Bid Process Management, in consultation with RLDA, in the following
suggested manner.
(a) Pre-Qualification of implementation agencies, if required
 Prepare advertisement for Pre-Qualification of agencies to implement the project;

 Prepare pre-qualification/expression of interest documents;
 Inviting Prequalification applications on behalf of RLDA;
 Evaluating the Prequalification applications and short listing suitable agencies; and
 Recommend the short listed agencies to RLDA

(b) Evaluation of Bid Proposals
 Receiving bids on behalf of RLDA and evaluating bids (technical and financial); and
 Make recommendations for the preferred bidder for award of contract
(c) Negotiations/Finalization of Agreement
 Assist RLDA in negotiating the Agreement with preferred bidder and finalizing the same with
respect to scope of services, technical and performance specifications etc.
2.5 Technical close of the project
Based on the foregoing process and upon selection of the developer/s for individual project
components, technical closure shall be achieved and thereafter the selected developer/s shall be
responsible for carrying out the project implementation process in conformity to bid requirements
including financial closure of their respective project components.
2.6 Monitoring during Project Development/ Implementation
After selection of the developer/s, if required, a’XYKno could undertake the responsibility for monitoring
and overseeing the work output of the developer/s in compliance of the terms and conditions of the
contracts/agreements with the objective of ensuring quality, completeness and compatibility of the work
carried out.

3 City Profile

3 City Profile
3.1 Introduction
Mumbai is the capital city of the Indian state of Maharashtra. It is the most populous city in India,
second most populous metropolitan area in India, and the fifth most populous city in the world, with an
estimated city population of 18.4 million and metropolitan area population of 20.7 million as of 2011.
Mumbai is the financial, commercial and entertainment capital of India. It is also one of the world's top
ten centres of commerce in terms of global financial flow, generating 5% of India's GDP and accounting
for 25% of industrial output, 70% of maritime trade in India and 70% of capital transactions to India's
economy. The city houses important financial institutions such as the Reserve Bank of India, the
Bombay Stock Exchange, the National Stock Exchange of India, the SEBI and the corporate
headquarters of numerous Indian companies and multinational corporations. The city also houses
India's Hindi (Bollywood) and Marathi film and television industry. Mumbai's business opportunities, as
well as its potential to offer a higher standard of living attract migrants from all over India, making the
city a melting pot of many communities and cultures.
3.2 Demographic Profile
Mumbai with a population of 12.48 million in 2011 is the most populous city in India. The population
density is estimated to be about 20,482 persons per square kilometre. The living space is 4.5 sq metres
per person. Mumbai consists of two distinct regions: Mumbai City district and Mumbai Suburban district,
which form two separate revenue districts of Maharashtra. The city district region is also commonly
referred to as the Island City or South Mumbai. The total area of Mumbai is 603.4 sq km. Of this, the
island city spans 67.79 sq km, while the suburban district spans 370 sq km, together accounting for
437.71 sq km under the administration of Brihanmumbai Municipal Corporation (BMC). The remaining
area belongs to Defence, Mumbai Port Trust, Atomic Energy Commission and Borivali National Park,
which are out of the jurisdiction of the BMC.

As per 2011 census, Greater Mumbai,

the area under the administration of the
MCGM, has a literacy rate of 94.7%,
higher than the national average of
86.7%. The number of slum-dwellers is
estimated to be 9 million; up from 6
million in 2001 i.e. 62% of all
Mumbaikers live in informal slums.
The sex ratio was 838 (females per

1,000 males) in the island city, 857 in
the suburbs, and 848 as a whole in
Greater Mumbai, all numbers lower than
the national average of 914 females per
1,000 males. The low sex ratio is partly
because of the large number of male
migrants who come to the city to work.
3.3 Connectivity
Railways: Mumbai is the headquarters of two of Indian Railways' zones: the Central Railway (CR)
headquartered at Chhatrapati Shivaji Terminus and the Western Railway (WR) headquartered at
Churchgate. Mumbai is also well connected to most parts of India by the Indian Railways. Long-
distance trains originate from Chhatrapati Shivaji Terminus, Dadar, Lokmanya Tilak Terminus, Mumbai
Central, Bandra Terminus, Andheri and Borivali.
Apart from this, the Mumbai Suburban Railway, popularly known as Locals forms the backbone of the
city's transport system. It is operated by Central Railway and Western Railway. The Mumbai Suburban
Railway consists of rapid transit on exclusive inner suburban railway lines augmented by commuter rail
on main lines serving outlying suburbs to serve the Mumbai Metropolitan Region. Spread over 465 kms,
the suburban railway operates 2,342 train services and carries more than 7.5 million commuters daily.
By annual ridership (2.64 billion), the Mumbai Suburban Railway is the busiest rapid transit system in
the world.

The Mumbai Monorail and Mumbai Metro have been built and are being extended in phases to relieve
overcrowding on the existing network. The Mumbai Monorail opened in early February 2014. The first
line of the Mumbai Metro opened in early June 2014.
Roadways: Mumbai is served by NH-3 (Mumbai-Agra), NH-4 (Mumbai-Chennai), NH-8 (Mumbai-

Delhi), NH-17 (Panvel-Kochi) and NH-222 (Kalyan – Nirmal Nagar near Adilabad). Other important road
includes the Mumbai-Pune Expressway, the Eastern Freeway and the Mumbai-Nashik Expressway.
The Bandra-Worli Sea Link bridge, along with Mahim Causeway links the island city to the western
suburbs. The three major road arteries of the city are the Eastern Express Highway from Sion to Thane,
the Sion Panvel Expressway and the Western Express Highway from Bandra to Borivali.
Airways: The Chhatrapati Shivaji International Airport is the main aviation hub in the city and the
second busiest airport in India in terms of passenger traffic. It handled 32.22 million passengers and
648,742 tons of cargo during FY 2013–14. An upgrade plan was initiated in 2006, targeted at
increasing the capacity of the airport to handle up to 40 million passengers annually.
The proposed Navi Mumbai International Airport to be built in the Kopra-Panvel area has been
sanctioned by the Indian Government and will help relieve the increasing traffic burden on the existing
airport.
Sea: Mumbai is served by two major ports, Mumbai Port Trust and Jawaharlal Nehru Port Trust, which
lies just across the creek in Navi Mumbai. Mumbai Port has one of the best natural harbours in the
world, and has extensive wet and dry dock accommodation facilities. Jawaharlal Nehru Port is the
busiest and most modern major port in India. It handles 55–60% of the country's total containerised
cargo. The city is also the headquarters of the Western Naval Command, and also an important base
for the Indian Navy.

4 Site Appreciation

4 Site Appreciation
A preliminary assessment of the project site have been carried out in the context of its strengths,
connectivity, surroundings, types of developments and future potential of nearby area etc. The detailed
analysis would be taken up during the feasibility study.
4.1 Site Location
The project site admeasuring approximately 9893 sq.mt is located in southern Mumbai at Mahalaxmi
area opposite to Race Course on Dr. E Moses road. The proposed site is irregular in shape. The site is
approachable by two roads i.e. Dr. E Moses road (major road) and Shakti Mill lane (minor road).
Jijamata Nagar
Mariamma Nagar
Adarsh
Nagar
Lotus
Colony Chinchpokli
Monorail Station
Ramdev
Nagar
Mahalaxmi
Race Course
Shanti
Nagar
Mahalaxmi Dhobi
Railway Station Ghat
Gadge Maharaj Chowk

Monorail Station
Haji Ali Gov.
Colony LEGEND
Project Site Major Road
Railway Line Minor Road
Mono Rail Line Station
Figure 4-1: Location Map of Mahalaxmi Site

4.2 Connectivity
The project site at Mahalaxmi abuts directly to Dr. E Moses road which connects Worli to Haji Ali area.
Dr. E Moses road, which is the major road for accessing the project site, has an ROW of about 30 m
and lies on the southern side of the site. Apart from this, Shakti mill lane with an ROW of about 10 m
lies on the western side of the designated site.
Regarding railway connectivity, the site is just 0.4 km from Mahalaxmi railway station which lies on the
Western Line of the Mumbai Suburban Railway (refer Figure 4-1). Trains starting from Churchgate
pass through Mahalaxmi.
The project site lies adjacent to the Metro

Line 3 (Colaba – Bandra – SEEPZ) which is
32.50 km long and fully underground with 27
stations. It connects major CBDs of Nariman
point and Bandra-Kurla Complex, Domestic
and International Airport and industrial areas
of MIDC and SEEPZ.
Proposed stations at Science Museum and

Mahalaxmi metro lies in close immediacy of
the project site at a distance of less than 1
km. Interchange facility with Western Railway
has been proposed at Mahalaxmi station and Project Site
with Monorail at Sant Ghadge Maharaj
Chowk station.
The Central Cabinet accorded approval for

the project on 27th June 2013 and
subsequently the project was notified under
Metro Act by MoUD on 18th Sept 2013. The
process for appointing General Consultant
Figure 4-2: Metro Rail Route
(GC) and Pre-Qualification of contractor for
civil works is in progress.

Also, the project site lies in close proximity of

Mono Rail network. The Mono Rail from
Chembur – Wadala – Sant Gadge Maharaj
Chowk is a 20 Km long Monorail corridor
which is constructed as a feeder service to
the other transit system and to cater crowded
and narrow congested areas. The Phase I of
this Mono Rail network from Wadala Depot to Project
Site
Chembur is already constructed and opened

to the public on February 2014. The
construction work of Phase II from Wadala to
Sant Gadge Maharaj Chowk is in advanced
stage and is expected to be completed next
year. The project site at Mahalaxmi lies in
close proximity of Mono Rail stations of
Figure 4-3: Mono Rail Route
Gadge Maharaj Chowk and Chinchpokli
which are at a distance of 0.75 km and 1.5 km respectively from the project site. Figure 4-3 presents
the Mono Rail route in Mumbai and the project site.
Dr. E Moses Road Shakti Mill Lane
The distances of the major landmarks and commercially important parts of the city from the site are
depicted as follows:

Table 4-1: Distance of major landmark and key features from project site
Location Approximate distance from Site
Mahalaxmi Temple 3.1 km
Haji Ali Dargah 2.0 km
Mahalaxmi Railway Station 0.4 km
Mahalaxmi Race Course Opposite to project site
Chhatrapati Shivaji International Airport 16.0 km
Worli Seaface 3.0 km
Nehru Science Center 3.3 km
Residential Zone 0.5 km
Commercial Zone (Senapati Bapat Marg) 1.0 km
Industrial Zone 0.5 km
4.3 CTS No. and Ownership Status
As per the Property card obtained from Superintendent of Mumbai City Survey & Land Records, the
CTS no. of the project site is 43 and the Cadastral Survey No. of the site is F.P.NO.614 TPS IV (refer
Figure 4-4). The site falls under the Mahim division. The site is under continuous ownership of The
General Manager Western Railway for more than 12 years. The area of the project site as per the
property card is 11308.62 sq. mts. There is some difference in area mentioned in property card and
topographic survey, which may be due to extra land taken by the sub-station adjacent to the project
site.

Figure 4-4: Property Card
4.4 Site and its Surrounding
As stated earlier, the site bearing CTS No. 43 is situated at Mahalaxmi area opposite to Mahalaxmi
Racecourse on Dr. E Moses road. Primarily, the site is encircled by open space, government offices,
public utility & facility and transport corridors. The immediate surroundings of the project site consists of
government printing press on the northern end of the site while Shakti mill lane is located on the
western side followed by under construction building. Railway line followed by central dumper is

situated on the eastern side whereas Dr. E moses road passes through the southern side. Electrical
sub-station is situated on the south-east direction while Mahalaxmi Racecourse is positioned in the
south-west direction of the project site.
Industries
Commercial
Lodha
Under Bellissimo
construction
Shakti Mills Building
Under
construction
Building
Mahalaxmi
Racecourse
Residential
Project Site
Arthur
Road
Jail
Slum Cluster
Figure 4-5: Site and Surrounding
View of Sub-Station View of Mahalaxmi Racecourse

View of Under-Construction Building on western

View of Shakti Mills on northern side
side
View of Residential development (Lodha

View of Mahalaxmi Railway Station
Bellissimo and Under-Construction Building)
View of main approach road (Dr. E Moses road) View of side approach road (Shakti Mills Lane)
Major developments around the site are as follows:
There are government printing press and Shakti mills compound followed by industrial
North
development
South Dr. E Moses road and railway line lies on the

There is railway line followed by central dumpar and residential development (both slums
East
and high end residential apartments)
West Shakti mills road followed by under construction building and commercial development
Inside the site: The side admeasuring 9893 sq.m approximately is irregular in shape. As per the
topographic survey conducted for the site, about 133.3 m length of the site faces the major road i.e. Dr.
E Moses road while about 32.3 m length of the site faces the minor road i.e. Shakti Mill lane. Presently,
there are about 21 trees of varying girth inside the site. There are also minor structures like DSK office
(G+1 structure), 2 godowns and a weigh bridge. All of these structures are in dilapidated condition and
presently not in use. The site is fenced by boundary wall from all the sides.
Figure 4-6: Site Plan of Mahalaxmi Site as provided by RLDA

Figure 4-7: Topographic Survey Map of Mahalaxmi Site

The following photographs represent the present features of the project site.
Entrance Gate from the northern side Vegetation inside the site
View of DSK office Defunct structures inside the site
View of Banyan tree inside the site Big trees inside the site
4.5 Encroachment
As per the reconnaissance survey and topographic survey of the project site, it is understood
that the site is free from any kind of encroachments.

4.6 Land Use as per Sanctioned Revised DP
As per the sanctioned revised Development Plan remarks for the project site from the Municipal
Corporation of Greater Mumbai, the project site falls under the “G/S” ward and the land use zone is
“Special Industrial Zone (I-3 zone)”. Figure 4-8 presents the sanctioned revised Development Plan
remarks for Mahalaxmi site.

Figure 4-8: Development Plan remarks for Mahalaxmi Site

4.7 Development Plan Remarks
The DP remarks for the project site are described below:
Table 4-2: Development Plan remarks for Mahalaxmi Site

S. No. Particular Remark
1 Description of the Land C.S.No. 43 (PT) of Lower Parel Division
2 Sanctioned Revised Development Plan G/S
referred to Ward
3 Reservations affecting the Land Nil
4 Reservations abutting the Land Car Pound
5 Designations affecting the Land Nil
6 Designations abutting the Land Nil
7 D.P. Roads affecting the Land Nil
Remarks from other Department / Offices
As the land under reference falls within 30 metres of Western Railway boundary, specific remarks
shall be obtained from the concerned authority (Western Railways)
The plot under reference is falling within the peripheral of 500 metres from Arthur Road Jail; hence
before any development activity on the land, NOC from Central Jail Authority shall be obtained.
It is necessary to insist NOC from MMRDA for the development of the lands situated within a
distance not exceeding 50 metres on either sides of the central line of the tentative proposed
alignment of the Metro Line-3 (Colaba-Bandra). As the land falls within the stipulated distance,
NOC from MMRDA shall be obtained before any development.
The copy of the development plan remarks is appended in Appendix 4.1.
4.8 Permissible Activities
According to Development Control Regulation 1991 of Municipal Corporation of Greater Mumbai “With
the previous approval of Commissioner, any open land or lands or industrial lands in the
Special Industrial Zone (I-3 Zone) (including industrial estate), excluding lands of cotton textile
mills, may be permitted to be utilised for any of the permissible users in Residential Zone (R-1
Zone) or Residential Zone with shop line (R-2 Zone) or for those in the Local Commercial Zone
(C-1 Zone)”.

4.9 Procedure for change of Land Use
Procedure: To change the land use from present Industrial to Commercial, an application needs to be
made in the name of:
The Executive Engineer,

Development Plan (City),
Mumbai Mahanagar Palika,
C.T.S. Mumbai – 400 001
Along with the application, the following documents needs to be submitted:
1) P.R. Card;
2) Lease documents of property;

3) C.S. Plan of the property;
4) D.P. Remarks of the property;
5) Closer of Industry permission from Labor Commissioner (if required);
6) Appointment letter of Architect; and
7) One set of plan showing there in Block plan & Location plan of plot under reference with provision
of 5% amenity open space as per D.C. Rule
Time Frame: The tentative duration for change of land use is about 4-6 months.
Cost: The approximate cost is about Rs. 10 per sq.m.
4.10 FSI (Floor Space Index)
Commercial Development: The maximum permissible Floor Space Indices for Local Commercial
Zone (C-1 Zone) in Island city is 1.33.
However, for buildings of Government and semi-government offices and public sector undertakings
“Considering the specific requirement & with the previous approval of the Government, the
Commissioner may permit the Floor Space Indices to be exceeded by 300% in the case of buildings of
Government offices in the island city, suburbs & extended suburbs”.
Also, the Commissioner may, by special permission, permit fungible compensatory Floor Space Index,
not exceeding 20% for Commercial development, over and above admissible Floor Space Index, by

charging a premium at the rate of 100% of the Stamp Duty Ready Reckoner Rate for Commercial
development.
Hotels: With the previous approval of the Government and subject to payment of premium fixed by the
Government and subject to such other terms and conditions it may specify, the floor space index may
be permitted to be exceeded in the case of buildings of all starred category residential hotels in
independents plots and under one establishment as approved by the Department of Tourism, upto total
FSI specified below and subject to following conditions:
Island City
Starred Category Premium recovered at the rate of
Total FSI
ready reckoner for additional FSI
1 to 3 Starred Category Hotels 3.00
25% or Rs. 6000/- per sq.mt.
4 Starred Category Hotels 4.00
whichever is more.
5 Starred Category Hotels 5.00
4.11 TRD (Transfer of Development Rights)
TDR cannot be loaded on the project site as the site falls in the island city and loading of TDR is not
permissible on lands / plots situated on island city.
4.12 Ready Reckoner Rate (2015)
The ready reckoner rate for the year 2015 was collected for Mumbai to ascertain the land value of the
project site and its development potential. As per ready reckoner, the rate of open land (for FSI 1) is Rs.
139,700 per sq. m. For constructed areas, the rates are presented in table below:
Table 4-3: Ready Reckoner Rate for project site

Rate of Building + Land in Rs. per sq. mtr. Built up
Residential Office / Commercial on Shop / Commercial on Industrial
Building Above floor Ground floor Area
257800 322500 387000 257800
Figure 4-9 and Figure 4-10 represents the location of site in Lower Parel Division and ready reckoner
rate for Mahalaxmi site.

Mahalaxmi Site
Figure 4-9: Location of Site in Lower Parel Division as per Ready Reckoner (2014)

Figure 4-10: Rate of the site as per Ready Reckoner (2015)

4.13 SWOT Analysis
Following are the strengths, weaknesses and opportunities of the proposed site for commercial
development:
a) Strengths
 Located in close proximity of transport corridors like western line of the Mumbai suburban railway,
mono rail and Dr. E Moses road
 Situated close to renowned places like Mahalaxmi temple, Haji Ali dargah, Nehru center etc
 In close proximity of premium recreational activity places like Mahalaxmi Racecourse and
Wellingdon Golf club
 Approachable through all parts of the city and abutting 30 m wide Dr. E Moses road
 Walkable distance from Mahalaxmi railway station of the Mumbai suburban railway and Mono Rail
stations of Gadge Maharaj Chowk (0.75 km) and Chinchpokli (1.5 km)
 Property size of about 2.45 acres along with excellent frontage of approximately 133 metres is ideal
for commercial development
 Land use of the property can be converted from Industrial to commercial
 Free from any kind of encroachment
 Site possesses good potential for commercial development because of its location advantage.
Prime business establishments, offices, residential apartments and high end recreational places
are situated in Mahalaxmi area
b) Weaknesses
 No major weakness perceived for the site
c) Opportunities
 Huge demand for commercial development around the project area

 The connectivity and the location advantage provide scope for development any sizable
commercial project including varied product mix
 Site possesses advantage of one of the important commercial hub & the favourite place to reside
for the rich and the upper-middle class in Mumbai
 The site is located at an important junction in part of Mumbai due to which there is plenty of
demand assessment and viability for different product mix
d) Threats
 No major threat is envisaged for the property

4.14 Regulatory Details
The key regulatory details for the project site at Mahalaxmi is summarized and presented in Table 4-4
below:
Table 4-4: Regulatory details for project site

S. No. Particulars Status
1 City Survey No. 43
2 Cadastral Survey No. F.P.NO.614 TPS IV
3 Land Ownership The General Manager Western Railway
4 Current Land Use Special Industrial Zone (I-3 zone)
5 Permissible FSI (as per current land use) 1
Residential Zone (R-1 Zone) or Residential Zone with
Other permissible land use (with prior
6 shop line (R-2 Zone) or Local Commercial Zone (C-1
permission of Commissioner)
Zone)
General – 1.33
For buildings of Government and semi-government
7 Permissible FSI (for commercial)
offices and public sector undertakings – 3.99
For 5 Star Hotel - 5
20% Fungible FSI (premium @ 100% of the Stamp Duty
8 Additional FSI
Ready Reckoner Rate for Commercial development)
9 Ready Reckoner rate (as per 2015) Rs. 139700 (rate of open land per sq.m for FSI 1)

5 Development Trend &

Demand Assessment

5 Development Trend & Demand Assessment

5.1 Introduction
The area around the project site is marked with residential development, commercial development
(offices), old industrial development and prominent recreational activities like Mahalaxmi Race Course,
Wellingdon Golf club, Nehru Science Centre etc. The slum areas around the project site are gradually
being developed into high rise residential development.
5.2 Development Trend
Commercial Development: Many prominent office building complexes are located near the project site
like Peninsula Corporate Park, Peninsula Business Park, Trade World, Lodha Supremus, Marathon
NextGen Innova, Shah & Nahar Industrial Estate etc (refer Figure 5-1). All of these buildings are
located on the northern side of the project site and situated on Dr. E .Moses road, Ganapatrao Kadam
marg, Senapati Bapat Marg and Shakti Mill Lane. The lease rental varies from Rs. 80 to Rs. 200 per
sq.ft per month depending on the location of the building, condition of building and amenities provided.
9
7 8
5
4 6
2
3
1
Project Site
Figure 5-1: Commercial Development around the Project Site

Table 5-1: Lease Rental of Commercial Building around project site

Lease Rental
S. No. Name of Building Street Name
(per sq. ft / month)
1 Turf Estate Shakti Mill Lane 80 - 125
2 Ever Green Industry Shakti Mill Lane 80 - 100
3 Turf Estate Dr. E. Moses Road 150 - 170
4 Shah & Nahar Industrial Estate Dr. E. Moses Road 100 - 125
5 Lodha Supremus Dr. E. Moses Road 145 - 165
6 Marathon NextGen Innova Senapati Bapat Marg 115 - 145
7 Peninsula Corporate Park Ganapatrao Kadam Marg 165 - 200
8 Peninsula Business Park Senapati Bapat Marg 170 - 200
9 Trade World Senapati Bapat Marg 100 - 125
Hospitality Development: Being centrally located in Mumbai city and close to Mahalaxmi railway
station and prominent commercial / recreational places, the project site has many hotels and
restaurants in near vicinity. Some of the prominent 5 star hotels include Four Season Hotel, Palladium
Hotel and ITC Grand Central, all of which are situated within a distance of about 1 to 3 km from project
site. Apart from this, there are many other starred category hotels and budget hotels as presented in
Figure 5-2.
1 2
4
Project Site
6
9 7 8
10
15 14 13
11
12
Figure 5-2: Hospitality Development around the Project Site

Table 5-2: Hospitality development around project site

No. of Rack Rate
S. No. Name of Hotel Rating Street Name
Rooms (in INR per day)
1 Four Season Hotel 5 Star Dr. E. Moses Road 202 13500 - 20700
2 Palladium Hotel 5 Star Senapati Bapat Marg 308 11700 – 20700
3 ITC Grand Central 5 Star Dr. Ambedkar Road 242 11500 - 15000
4 Pals Hotel Budget Barrister Nath Pai Road 40 1700 - 2500
5 Comfort Inn Heritage 3 Star St Savata Mali Marg 96 5700 - 9200
6 Best Western Hotel Budget J. B. Behram Marg 91 6000
7 Balwas International Budget Sukhlaji Marg, Kamathipura 84 3500 - 6000
8 Ripon Palace Budget Bellasis Road NA 1995 - 3450
9 Hotel Crystal Budget Off Lamington Road 36 NA
10 Hotel Park Shilton Budget Lamington road 30 3300 - 4995
11 Hotel Kumkum Budget Lamington road 29 1400 - 2700
12 Krishna Palace 4 Star Sleater road 68 5000 - 10500
13 Royal Castle Budget August Kranti Marg NA 2400 - 3300
14 Kemps Corner 2 Star August Kranti Marg 35 2600 - 5000
15 The Shalimar Hotel 4 Star August Kranti Marg 63 7200 - 17000
Residential Development: Many prominent residential buildings are located near the project site like
Lodha Bellissimo, Lodha Primero, Lokhandwala Residency, Marathon NextGen Era, Raheja Atlantis,
Planet Godrej, Raheja Vivarea etc (refer Figure 5-3). The residential development is spread all around
the project sites ard are mainly situated on Dr. E .Moses road, Ganapatrao Kadam marg, Senapati
Bapat Marg, N.M.Joshi marg and Jacob circle. The market price varies between Rs. 31000 to Rs.
56000 per sq.ft while the lease rental varies from Rs. 65 to Rs. 155 per sq.ft per month depending on
the location of the building, condition of building and amenities provided.

3 4
2
1
5 6 7
Project Site
8
9
10
11
Figure 5-3: Residential Development around the Project Site
Table 5-3: Market Price and Rental for Residential Buildings around project site
Rental
Market Price
S. No. Project Name Location Developer Status (INR per
(INR per Sq.ft)
Sq.ft/month)
Lokhandwala Lokhandwala
1 Worli Completed 36500 - 38500 65 - 111
Residency Infrastructure
Marathon NextGen Off Ganpatrao
2 Marathon Realty Completed 33500 - 42500 77 - 103
Era Kadam Marg
3 Raheja Atlantis Worli Raheja Universal Completed (2012) 46000 - 49000 78 - 147
4 Ashford Casa Grande Senapati Bapat Marg Ashford Housing Completed 47000 - 54000 125 - 157
Lokhandwala Lokhandwala Under
5 Shastri Nagar 26000 - 30500 N.A.
Minerva Infrastructure Construction
6 Lodha Bellissimo Adarsh Nagar Lodha Group Completed (2012) 31000 - 48000 74 - 125
7 Lodha Primero Adarsh Nagar Lodha Group Completed (2014) 34000 - 50000 96 - 148
8 Planet Godrej Jacob Circle Godrej Properties Completed (2011) 41000 - 54000 86 - 147
9 Vivarea Jacob Circle K Raheja Corp Completed (2010) 48000 - 56000 100 - 150
Mahindra Lifespace
10 Belvedere Court Mahalaxmi Completed (2005) 36000 - 38000 N.A.
Developers Limited
Dr. Anandrao
11 Kalpataru Heights Kalpataru Completed (2006) 45000 95
Nair Road

5.3 Perception Survey
Apart from analysing the development trend around the project site, a perception survey was also
conducted to assess the views of various stakeholders on the proposed development on project site.
During the survey, an attempt was made to contact various stakeholders like real estate developers,
real estate brokers, bankers / financial institutions, government officials and other general public.
Table 5-4: Perception Survey for Project Site

View of Stakeholders Real Banker /
Real Estate Government
on the development Estate Financial Others
Developer Officials
in Project Site Broker Institutions
Lease Option
Location
Residential
Commercial
Retail
Hospitality
Entertainment (Multiplex)
LEGEND
Good / High /Go
Average / Medium
Bad / Low / No-Go
The list of real estate developers and real estate brokers are appended in Appendix 5.1.
5.4 Product Mix Derivation
The product mix derivation based on various parameters for the project site located at Mahalaxmi area
is presented in Table 5-5 below:
Table 5-5: Product Mix Derivation for Project Site

Desirability Desirability Desirability
Non-Desirable from from from Overall
Product Desirable Factors
Factors survey Developers Marketability Desirability
perspective perspective perspective
High demand for Disposal of land not
Residential residential development part of the client’s Very High Very High Very High Very High
objective
High demand for
commercial
development
Located along
Commercial Dr.E.Moses road, the Very High Very High Very High Very High
commercial spine of
Mahalaxmi area
Proximity to Mahalaxmi
railway station

Desirability Desirability Desirability

Non-Desirable from from from Overall
Product Desirable Factors
Factors survey Developers Marketability Desirability
perspective perspective perspective
Proximity to proposed
mono rail station
Located along No organised retail
Dr.E.Moses road, the development present
commercial spine of around the project
Retail Mahalaxmi area site Medium High Medium Medium
High residential
development around
the project site
Three existing 5 Competition among
Hospitality Starred category hotels hotels High High Medium High
in near proximity
5.5 Conclusion
Based on the present development trend, perception survey and demand assessment of various
product mix, it can be said that the project site has high potential for residential and commercial
development. However, as the disposal of land is not part of the RLDA objective, the residential
development on project site is ruled out and it is proposed to undertake the commercial development
(offices / hotel).

6 Financial Analysis

6 Financial Analysis
6.1 Feasibility Analysis
Preparation of Feasibility Report for Development of Commercial Complex at Mahalaxmi to be carried

out under a Public Private Partnership framework on Design – Build – Finance – Operate – Transfer
(DBFOT) basis.
6.2 Proposed Options for Development
As per the Development Control Regulations, market survey and product mix analysis, the following
development options are proposed:
Option FSI Product Mix

Option 1:
Development of Commercial Complex (General Commercial 1.33 Shops + Office + Parking
Development )
Option 2:
Development of Building of Government and semi- government 3.99 Office + Parking
offices and public sector undertaking
Option 3:
5.00 Hotel + Parking
Development of Five Star Category Hotel
Probable sources of revenue include the following:
Lease Rentals from commercial establishments proposed in the commercial part of the project
depending upon product mix are as follows:
Revenue from shops / office space / hospitality industry and other commercial establishments
Advertisement Revenues at commercial premises of the project
Revenue from parking of vehicles etc
Interest accruals on Security Deposit of Lease

6.3 Option 1: Development of Commercial Complex (General Commercial

Development)
6.3.1 Financial Assumption
1. The total area of the land is 9893 Sq. m.
2. Ground Coverage considered - 20% of land area

3. Concession Period is assumed to be 45 years including construction period
4. Construction Period is estimated to be 24 months
5. Base construction cost estimated for the commercial complex is Rs. 25000 per sq.m up to 4 floors
and Rs. 26250 from 5th to 10th floor
6. Annual income is escalated every 3 years by 15%
7. Annual expenses have been escalated by 5% annually

8. Corporate Income Tax is assumed at the prevailing rates of 32.45%
9. Rate of Interest for the project has been considered at the prevailing PLR at 13.00%
10. Debt Equity Ratio considered for the project is 50:50
11. Discounting Rate has been assumed @ 15.00 %
12. An Maximum Upfront Lease Premium + Annual Lease Rent is considered as project structuring
model for evaluating the financials of the project
(a) Selected Concessioner has to develop the Commercial Complex and pay the Upfront Lease
Premium more than or up to Rs. 7534.51 lakh. Upfront Lease Premium is payable in 5 instalments.
Upfront Premium
% of total
Particulars Rs. in Lakh
Upfront quoted
Total Upfront Lease Premium to be paid 7,534.51
Upfront Premium (Signing of Agreement) 40% 3,013.80
1st Year from the date of signing of Agreement 15% 1,130.18
2nd Year from the date of signing of Agreement 15% 1,130.18
3rd Year from the date of signing of Agreement 15% 1,130.18
4th Year from the date of signing of Agreement 15% 1,130.18
(b) Annual Lease Rent has been considered @ 0.5% of the Upfront Lease Premium quoted by the
bidder
(c) Escalation of the Annual Lease Rent is by 15% every 3 years

6.3.2 Area Statement
Area Parking Commercial space Construction cost

Particulars
(Sq.m) (Sq.m) (Sq m) (Amount in Lakh)
Ground Floor ( Lobby + Parking) 1,978.6 1978.60 0.00 494.65
1st Floor( Parking) 1,978.6 1978.60 0.00 494.65
2nd Floor (Shops ) 1,978.6 0.00 1,978.60 494.65
3rd Floor (Office) 1,978.6 0.00 1,978.60 494.65
4th Floor (Office) 1,978.6 0.00 1,978.60 494.65
5th Floor (Office) 1,978.6 0.00 1,978.60 519.38
6th Floor (Office) 1,978.6 0.00 1,978.60 519.38
7th Floor (Office) 1,978.6 0.00 1,978.60 519.38
8th Floor (Office) 1,286.1 0.00 1,286.09 337.60
Total 13,157.69 3,957.20 13,157.69 4,369.0
Note: As per the DC rules, FSI for the commercial land use is 1.33. Fungible FSI of 20% is not
considered in present calculation.
6.3.3 Assumptions for Revenue
Based on the demand assessment, the following assumption for revenue has been considered:
Key Revenue Parameters

Particulars Rs. / sq.ft / month Rs. / sq.mt / month
Ground floor & Floor (Parking)
1st
Lease rent on 2nd Floor (Shops) 160 1,722.24
Lease rent on 3rd & 4th Floor (Office) 165 1,776.06
Lease rent on 5th & 6th Floor (Office) 170 1,829.88
Lease rent on 7th & 8th Floor (Office) 175 1,883.70
Lease rent on 9th Floor (Office) 180 1,937.52
6.3.4 Expenditure Assumptions
Key Expenditure Parameters

Particulars (% per Annum)
Annual Lease Rent 0.5%
Depreciation (WDV method) 10%
Income Tax 32.45%

6.3.5 Administration and O&M Cost Assumptions
Administration Cost
Particulars Up to 10 year After 10 Year (Rs. / month)
Marketing Manager 8.00 2 25,000.00
Accounts Manager 2.00 1 15,000.00
Security Officer 4.00 2 12,000.00
Maintenance Supervisor 4.00 2 10,000.00
Maintenance Staff 10.00 4 9,000.00
O&M Cost
O & M Cost ( 0.5% of Construction cost ) 0.50% 27.72
6.3.6 Estimated Project Cost
To arrive at project cost, various other components apart from construction cost like approval &
sanction cost, project development cost, fungible FSI cost, insurance cost, financing cost, upfront
premium and interest during construction have been considered. The project cost is estimated at Rs.
111.23 Crores Approx.
Cost of Project & Means of Finance (Rs. in Lakh)

Particulars 2016 -17 2017-18 Total
Construction cost 2322.59 2322.59 4645.17
Shops and Office 1689.85 1689.85 3379.70
Parking Space at Ground & First floor 494.65 494.65 989.30
Non FSI area 138.09 138.09 276.18
Plumbing, Electrification, Sanitation and other amenities 267.10 220.65 487.74
Add. Site development charges @ 1% 46.45 0.00 46.45
Add. For WC Establishment Charges @ 2% 46.45 46.45 92.90
Add. For Electrification @ 5% 116.13 116.13 232.26
Add. For plumbing and Sanitation @ 2.5% 58.06 58.06 116.13
Construction Cost including land & Development Cost 2589.68 2543.23 5132.92
Insurance @ 1% 25.90 25.43 51.33
Project Management charges @ 2% 51.79 50.86 102.66
Escalation, Pre Operative and Contingency Expenses @ 5% 129.48 127.16 256.65
Premium for Fungible FSI 0.00 0.00 0.00
Minimum upfront payment (Premium for Land) 3013.80 1638.76 4652.56
Interest During construction period 305.55 621.48 927.03
Total Project Cost 6116.21 5006.93 11123.14

6.3.7 Means of Finance
Means of Finance (Rs. In lakhs)

Term Loan 5,561.57 50.00%
Equity 5,561.57 50.00%
Total 11,123.14 100.00%
6.3.8 Key financial parameters
The key financial parameters computed are Project IRR, NPV, Pay Back Period and Debt Service
Coverage Ratio (DSCR). The key financial indicators have been calculated for 45 years, which also
includes the construction period of 24 months as per the table given below.
Key Results
Lease period 30 35 40 45 Years
Project Cost 11123.14 11123.14 11123.14 11123.14 Rs in lacs
Project NPV INR 4,478.30 INR 4,876.44 INR 5,140.37 INR 5,312.76 Rs in lacs
Equity NPV INR 5,110.26 INR 5,508.40 INR 5,772.34 INR 5,944.73 Rs in lacs
Project IRR 20.02% 20.17% 20.25% 20.29% %
Equity IRR 22.29% 22.43% 22.49% 22.51% %
Payback Period 12.50 12.50 12.50 12.50 Years
D. S. C. R. 1.26 1.26 1.26 1.26 Point
Total Upfront Payment 7534.51 7534.51 7534.51 7534.51 Rs in lacs
Annual Lease Rent 37.67 37.67 37.67 37.67 P.A
Escalation in Annual Lease Rent 15% 15% 15% 15% Every 3 Year
From the above analysis, it is observed that project is more feasible at project period of 45 years or
even more.

6.4 Option 2: Development of Building of Government and semi-government

offices and public sector undertaking

5. Construction cost estimated for office space is Rs. 25000 per sq.m up to 4th floor, Rs. 26250 per
sq.m from 5th floor to 10th floor and Rs. 27500 per sq.mt from 11th to 20th floor

9. Rate of Interest for the project has been considered at the prevailing PLR at 13%
10. Debt Equity Ratio considered for the project is 50:50.
11. Discounting Rate has been assumed @ 15.00%.
12. An Maximum upfront Lease Premium + Annual Lease Rent is considered as project structuring
(a) Selected Concessioner has to develop the office space and pay the upfront Lease Premium more
than or up to Rs. 18939.21 lakh. Upfront Lease Premium is payable in 5 instalments.
Upfront Premium
Particulars % of total Upfront quoted Rs. in Lakh
Total Upfront Premium to be paid 18,968.71
(b) Annual Lease Rent has been considered @ 0.5% of Upfront Premium quoted by the bidder
(c) Escalation of the Annual Concession Fee is by 15% every 3 years

Propose Utilization Break up

Area Parking Office Space Construction Cost
Particulars
(Sq.m) (Sq.m) (Sq.m) (Amount in Lakh)
Basement 1 1,978.6 1978.60 0.00 494.65
Basement 2 1,978.6 1978.60 0.00 494.65
Ground Floor (Lobby + Parking) 1,978.6 1978.60 0.00 494.65
1st Floor (Parking) 1,978.6 1978.60 0.00 494.65
2nd Floor (Parking) 1,978.6 1978.60 0.00 494.65
3rd Floor (Office) 1,978.6 1,978.60 494.65
4th Floor (Office) 1,978.6 1,978.60 494.65
5th Floor (Office) 1,978.6 1,978.60 519.38
6th Floor (Office) 1,978.6 1,978.60 519.38
7th Floor (Office) 1,978.6 1,978.60 519.38
8th Floor (Office) 1,978.6 1,978.60 519.38
9th Floor (Office) 1,978.6 1,978.60 519.38
10th Floor (Office) 1,978.6 1,978.60 519.38
11th Floor (Office) 1,978.6 1,978.60 544.12
12th Floor (Office) 1,978.6 1,978.60 544.12
13th Floor (Office) 1,978.6 1,978.60 544.12
14th Floor (Office) 1,978.6 1,978.60 544.12
15th Floor (Office) 1,978.6 1,978.60 544.12
16th Floor (Office) 1,978.6 1,978.60 544.12
17th Floor (Office) 1,978.6 1,978.60 544.12
18th Floor (Office) 1,978.6 1,978.60 544.12
19th Floor (Office) 1,978.6 1,978.60 544.12
20th Floor (Office) 1,978.6 1,978.60 544.12
21st Floor (Office) 1,978.6 1,978.60 568.85
22nd Floor (Office) 1,879.7 1,879.67 540.41
Total 39,473.07 9,893.00 39,473.07 13,129.2
Note: As per the DC rules, FSI for the government / semi government & public sector undertaking building is
3.99. Fungible FSI of 20% is not considered in present calculation.

Key Revenue Parameters

Particulars Rs. / sq.ft / month Rs. / sq.mt / month
Lease rent on Ground floor & 1st Floor (parking) 0.00
Lease rent on 2nd Floor (parking) 160 0.00
Lease rent on 3rd & 4th Floor (office) 165 1,776.06
Lease rent on 5th & 6th Floor (office) 170 1,829.88
Lease rent on 9th &10th Floor (office) 180 1,937.52

Income Tax 32.45%
6.4.5 Administration and O&M Cost Assumptions
Administration Cost
Particulars Up to 10 year After 10 Year (Rs. / month)
Marketing Manager 8.00 2 25,000.00
Accounts Manager 2.00 1 15,000.00
Security Officer 4.00 2 12,000.00
Maintenance Supervisor 4.00 2 10,000.00
Maintenance Staff 10.00 4 9,000.00
O&M Cost
O & M Cost (0.5% of Construction cost) 0.50% 38.21

sanction cost, project development cost, insurance cost, financing cost, upfront premium and interest
during construction have been considered. The project cost is estimated at Rs. 308.98 Crores Approx.
Cost of Project and Means of Finance (Rs in Lakh)

Particulars 2016-17 2017-18 Total
Shops and Office 5328.00 5328.00 10656.00
Non FSI area 414.27 414.27 828.53
Insurance @ 1% 77.81 76.42 154.23
Premium for Fungible FSI 0.00 0.00 0.00
Means of Finance (Rs. in lakhs)

Term Loan 15,448.86 50.00%
Equity 15,448.86 50.00%
Total 30,897.72 100.00%
The key financial parameters computed are Project IRR, NPV, Pay – Back Period and Debt Service
Coverage Ratio (DSCR). The key financial indicators have been calculated for 45 years which also

Key Results
Project Cost 30897.72 30897.72 30897.72 30897.72 Rs in lakh
Project NPV INR 11,956.07 INR 13,026.60 INR 13,736.95 INR 14,201.73 Rs in lakh
Equity NPV INR 13,702.71 INR 14,773.24 INR 15,483.59 INR 15,948.37 Rs in lakh
Project IRR 19.95% 20.11% 20.19% 20.23% %
Equity IRR 22.28% 22.41% 22.47% 22.50% %
D. S. C. R. 1.26 1.26 1.26 1.26 Point
Total Upfront Payment 18968.71 18968.71 18968.71 18968.71 Rs in lakh

6.5 Option 3: Development of 5 Star Category Hotel

5. Construction cost for Five Star category hotel has been estimated as Rs. 25000 per sq.m for
parking, Rs 30000 per sq.m up to 4th floor, Rs. 31500 per sq.m from 5th floor to 10th floor, Rs 33000
per sq.mt from 11th to 20th floor and Rs 34500 per sq.mt from 20th to 30th floor
9. Rate of Interest for the project has been considered at the prevailing PLR at 13 %
10. Debt Equity Ratio considered for the project is 50:50.
11. Discounting Rate has been assumed @ 15.00 %.

12. An Maximum upfront Lease Premium + Annual Lease Rent is considered as project structuring
(a) Selected Concessioner has to develop the office space and pay the upfront Lease Premium more
than or up to Rs. 16128.56 lakh. Upfront Lease Premium is payable in 5 instalments.
Upfront Premium
Particulars % of total Upfront quoted Rs in Lakh
Total Upfront Premium to be paid 16,128.56
(b) Annual Lease Rent has been considered @ 0.5% of Upfront Premium quoted by the bidder
(c) Escalation of the Annual Concession Fee is by 15% every 3 years

Propose Utilization Break up

Area Parking Commercial space Construction Cost
Particulars
(Sq. m) (Sq. m) (Sq. m) (Amount in Lakh)
Basement 1 1,978.6 1978.60 0.00 494.65
Basement 2 1,978.6 1978.60 0.00 494.65
Ground Floor ( Lobby + Parking) 1,978.6 1978.60 0.00 494.65
1st Floor (Parking) 1,978.6 1978.60 0.00 494.65
2nd Floor (Parking) 1,978.6 1978.60 0.00 494.65
3rd Floor (Parking) 1,978.6 1978.60 0.00 494.65
4th Floor (Parking) 1,978.6 1978.60 0.00 494.65
5th Floor (Hotel) 1,978.6 1,978.60 623.26
6th Floor (Hotel) 1,978.6 1,978.60 623.26
7th Floor (Hotel) 1,978.6 1,978.60 623.26
8th Floor (Hotel) 1,978.6 1,978.60 623.26
9th Floor (Hotel) 1,978.6 1,978.60 623.26
10th Floor (Hotel) 1,978.6 1,978.60 623.26
11th Floor (Hotel) 1,978.6 1,978.60 652.94
12th Floor (Hotel) 1,978.6 1,978.60 652.94
13th Floor (Hotel) 1,978.6 1,978.60 652.94
14th Floor (Hotel) 1,978.6 1,978.60 652.94
15th Floor (Hotel) 1,978.6 1,978.60 652.94
16th Floor (Hotel) 1,978.6 1,978.60 652.94
17th Floor (Hotel) 1,978.6 1,978.60 652.94
18th Floor (Hotel) 1,978.6 1,978.60 652.94
19th Floor (Hotel) 1,978.6 1,978.60 652.94
20th Floor (Hotel) 1,978.6 1,978.60 652.94
21st Floor (Hotel) 1,978.6 1,978.60 682.62
22st Floor (Hotel) 1,978.6 1,978.60 682.62
23st Floor (Hotel) 1,978.6 1,978.60 682.62
24st Floor (Hotel) 1,978.6 1,978.60 682.62
25nd Floor (Hotel) 1,978.6 1,978.60 682.62
26th Floor (Hotel) 1,978.6 1,978.60 682.62
27th Floor (Hotel) 1,978.6 1,978.60 682.62
28th Floor (Hotel) 1,978.6 1,978.60 682.62
29th Floor (Hotel) 1,978.6 1,978.60 682.62
Total 49,465.00 13,850.20 49,465.00 19,875.0
Note: As per the DC rules, FSI for the Five Star Category hotel is 5.

Area Statement
Total Floor Area 49465 Sq.mt 100%
(Less) Circulation area 9893 Sq.mt 20%
(Less) Bar, Restaurants, Sport area and other 8904 Sq.mt 18%
(Less) Admin and services area 3463 Sq.mt 7%
Total Available area for Room 27206 Sq.mt 55%
Average Room Area 45 Sq.mt
Number of Room 605 Number
Sources % of Room revenue Rs. per room

Average Revenue from 1 Room
Room Rent 57% 11000
Food & Beverage (of Room Rate) 22% 2453
Banquets & Conferences (of Room Rate) 15% 1650
Telephone & Other (of Room Rate) 1% 55
Minor operated (of Room Rate) 3% 363
Rental & other (of Room Rate) 2% 209
Total 15730
Source: Indian Hotel Industry Survey Report by ECOTEL, 2012-13 and Consultant estimate

Income Tax 32.45%
6.5.5 Departmental, Operating and Fixed Expenses Assumptions
Departmental Expenses (Average per Room)

Rooms 17.78% 2797
Food & Beverage 6.96% 1094
Banquets & Conferences 4.68% 736
Telephone & Other 0.16% 25
Minor operated 1.03% 162
Rental & other 0.59% 93
Total 31.20% 4908
Operating Expenses (Average per Room)
Administrative & General 7.60% 1195
Management Fees 2.00% 315
Marketing 3.60% 566
Franchise Fees 0.30% 47

Property operations & Maintenance 5.10% 802

Energy 8.20% 1290
Total 4216
Fixed Expenses (Average per Room)
Property Taxes 1.80% 119
Insurance 0.30% 20
Other Fixed Charges 2.10% 139
Rental & other 0.80% 53
Total 330
Source: Indian Hotel Industry Survey Report by ECOTEL, 2012-13
sanction cost, project development cost, insurance cost, financing cost, upfront premium and interest
during construction have been considered. The project cost is estimated at Rs. 570.52 Crores Approx.
Cost of Project and Means of Finance (Rs in Lakh)

Particulars 2016-17 2017-18 Total
Shops and Office 8206.24 8206.24 16412.49
Non FSI area 519.13 519.13 1038.26
Insurance @ 1% 116.59 114.50 231.09
Premium for additional FSI** 16864.84 0.00 16864.84
Source: For 5 star hotel, FSI upto 5 is permissible by paying 25% of ready reckoner rate or Rs. 6000 per sq. m
whichever is more. The cost for this additional FSI has been added in present calculation for arriving at the total
project cost.
Means of Finance (Rs. in lakhs)

Term Loan 28,526.17 50.00%
Equity 28,526.17 50.00%
Total 57,052.34 100.00%

The key financial parameters computed are Project IRR, NPV, Pay – Back Period and Debt Service
Coverage Ratio (DSCR). The key financial indicators have been calculated for 45 years which also
Key Results
Project Cost 57052.34 57052.34 57052.34 57052.34 Rs in lakh
Project NPV INR 18,130.58 INR 19,658.98 INR 20,699.72 INR 21,377.96 Rs in lakh
Equity NPV INR 21,695.98 INR 23,224.38 INR 24,265.12 INR 24,943.36 Rs in lakh
Project IRR 19.54% 19.68% 19.76% 19.80% %
Equity IRR 22.30% 22.42% 22.48% 22.50% %
D. S. C. R. 1.22 1.22 1.22 1.22 Point
Total Upfront Payment 16128.56 16128.56 16128.56 16128.56 Rs in lakh

6.6 Feasibility Analysis Recommendations
Financial Conclusion
The Financial Feasibility has been ascertained on the basis of Project IRR (Post Tax), Equity IRR (Post
Tax) and DSCR basis. As the project IRR (more than 18.0% in all three options) is greater than WACC
(13.0%) and equity IRR (more than 22.0% in all three options) is more than to post tax equity (13.5%)
and the site has returns that are more than the bank’s lending rate, the project can be recommended as
financially feasible for all options.
However, in option 1 i.e. general commercial development, the upfront payment is Rs. 75.35 crore
(which is about 26.6% of government land cost) while in option 2 i.e. development of government / semi
government offices, the upfront payment is Rs. 189.69 crore (which is about 64.5% of government land
cost) and in option 3 i.e. development of 5 star hotel, the upfront payment is Rs. 161.29 crore (which is
about 54.8% of government land cost). Hence, option 2 and 3 seems to be more viable.
Project Structure Conclusion
The project is best suited for implementation on a DBFOT basis with highest Upfront Lease Premium +
Annual lease rental as the bidding parameter.

7 Way Forward

7 Way Forward
The process for going forward in the project is listed as under:
 Initiation of change of land use in consultation with RLDA;

 Market survey and discussion with various stakeholders and the client for ascertaining the product
mix;
 Finalization of proposed commercial activity in consultation with RLDA;
 Preparation of conceptual plans;
 Review and finalization of conceptual plans in consultant with RLDA;

 Submission of detailed drawing of concept plan, its finalization and approval from competent
authority;
 Draft Feasibility Study including broad cost estimate based on sanction plan and technical sanction;
 “Project Feasibility Study” to be done by consultant and Project Structuring with financial analysis
and its approval;
 Preparation of RFQ / RFP documents, concession agreement to be done by consultant based on

the recommendation from Project Feasibility Study and it approval; and
 Bid Process Management including preparation of Tender Documents and floating tender / pre bid
meeting, evaluation of bid, final acceptance of bid / tender and awarding contract.

Appendix 4.1: Development Plan Remarks


Appendix 5.1: Contact details of Stakeholders

List of Real Estate Developers
Name of Name of Contect
Designation Address email
Developer Person Number
Shakti Mills Lane,
TURF Mr. Vinod Mahalakshmi
Manager 9820806830
Estate Vaswani Nagar, Mumbai,
Maharashtra
Summer
Mr.
Heritage / Sales Dr. E Moses Road
Sandeep 9619188538 skhanvilkar71@gmail.com
Summer Manager Mahalaxmi
Khanvilkar
Group
Ever Green
Ever
Mr. Sayad Industries,
Green Manager 9664457569 suhailsayadss@gmail.com
Suhail Shakti Mill Lane
Industries
Mahalaxmi
Chandelier
Mr.
Court / Sales LN Papan Marg
Pankaj 9028690181 powerheartaed@gmail.com
Neumec Manager Warali
Mamtani
Group
Peninsula Mr. Senapati Bapat
Asst.
Business Vinayak Marg 9920969946 vinayokshinoyy@peninsula.co.in
Manager
Park Shinoy Lower Parel
List of Real Estate Brokers

Name of Name of Contect
Designation Address email
Developer Person Number
Virendra
Lower Parel 9819968785
V R Enterprises Kumar Proprietor vrenterprises2010@gmail.com
Mumbai 8108363550
Pandey
Royal Max 507, 5th
Mr.
Realtors and Floor, Nirman
Amarnath Proprietor amar@royalmaxestate.com
Property Kendra,
Prasad
Management Mahalaxmi
Mr.
Mahalaxmi
Neha Realtors Deepak Proprietor 9757394417 neharealty@hotmail.com
Mumbai
Goradia
Opp Johnson
Prem Estate Mr. Dilip n Johnson,
Proprietor 9821340103 premestate@gmail.com
Agency Joshi LBS Road,
Mumbai
Mr. Vijay
V.R.Enterprises Kumar Proprietor 9820168785 Vijaypande8785@gmail.com
Pandey

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Commercial Development of Railway Land at Mahalaxmi

COMMERCIAL DEVELOPMENT OF VACANT

RAIL LAND DEVELOPMENT AUTHORITY

a’XYKno Capital Services Limited 1

1.2 Rail Land Development Authority (RLDA)...................................................................... 10

1.3 A’XYKno Capital Services Ltd........................................................................................ 10

1.4 The Project .................................................................................................................... 12

1.5 Objective of Draft Report ............................................................................................... 13

1.6 Role of a’XYKno Capital Services Ltd. ........................................................................... 14

1.7 Role of RLDA ................................................................................................................. 17

2.2 Preparing Bid / Contract documents .............................................................................. 21

2.3 Marketing of the Project ................................................................................................. 22

2.4 Bid Process Management .............................................................................................. 22

2.5 Technical close of the project ........................................................................................ 23

2.6 Monitoring during Project Development/ Implementation .............................................. 23

3 City Profile ........................................................................................................ 25

3.2 Demographic Profile ...................................................................................................... 25

3.3 Connectivity ................................................................................................................... 26

4 Site Appreciation .............................................................................................. 29

4.2 Connectivity ................................................................................................................... 30

4.3 CTS No. and Ownership Status ..................................................................................... 32

4.4 Site and its Surrounding ................................................................................................ 33

4.6 Land Use as per Sanctioned Revised DP ...................................................................... 39

a’XYKno Capital Services Limited 2

4.7 Development Plan Remarks .......................................................................................... 41

4.8 Permissible Activities ..................................................................................................... 41

4.9 Procedure for change of Land Use ................................................................................ 42

4.10 FSI (Floor Space Index) ............................................................................................. 42

4.11 TRD (Transfer of Development Rights) ..................................................................... 43

4.12 Ready Reckoner Rate (2014) .................................................................................... 43

4.13 SWOT Analysis.......................................................................................................... 46

4.14 Regulatory Details ..................................................................................................... 47

5 Development Trend & Demand Assessment .................................................. 49

5.2 Development Trend ....................................................................................................... 49

5.3 Perception Survey ......................................................................................................... 53

5.4 Product Mix Derivation ................................................................................................... 53

5.5 Conclusion ..................................................................................................................... 54

6 Financial Analysis ............................................................................................ 56

6.2 Proposed Options for Development ............................................................................... 56

6.3 Option 1: Development of Commercial Complex (General Commercial Development) . 57

6.4 Option 2: Development of Building of Government and semi-government offices and

6.5 Option 3: Development of 5 Star Category Hotel ........................................................... 66

6.6 Feasibility Analysis Recommendations .......................................................................... 71

7 Way Forward ..................................................................................................... 73

a’XYKno Capital Services Limited 3

a’XYKno Capital Services Limited 4

Figure 4-1: Location Map of Mahalaxmi Site ........................................................................................ 29

a’XYKno Capital Services Limited 5

Appendix 5.1: Contact details of Stakeholders

a’XYKno Capital Services Limited 6

a’XYKno Capital Services Limited 7

a’XYKno a’XYKno Capital Services Ltd.

a’XYKno Capital Services Limited 8

a’XYKno Capital Services Limited 9

1.1 Project Background

1.2 Rail Land Development Authority (RLDA)

1.3 A’XYKno Capital Services Ltd.

a’XYKno Capital Services Limited 10

Services offered in Government Advisory

3. Undertaking Pre-Feasibility & Feasibility studies

4. Preparing business plans and marketing to private investors

5. Detailed Financial Modelling and Structuring

6. Bid Management for PPP as well as non PPP transactions.