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K Raheja Corporation, a real estate developer, has paid more than Rs 275 crore for floor space index (FSI) rights in central Mumbai’s Wadala neighborhood from a joint venture between MM Developer and Saroj Landmark Realty LLP.
The FSI rights will be used to develop the free-sale component of a slum rehabilitation project in Shanti Nagar, Wadala. The project’s slum rehabilitation component, which includes the new tenements, has been completed and received its Occupation Certificate (OC).
On December 16, 2022, the Slum Rehabilitation Authority issued the OC for the ground plus 1st to 19th upper floors of the project’s rehabilitation portion.
According to the regulations governing slum rehabilitation projects, the free-sale component can only be sold after completing the rehabilitation portion. With the FSI rights, the company can build over 350 residential apartments.
As per the documents accessed through CRE Matrix, a real estate data analytics firm, the company paid stamp duty worth over Rs 16.50 crore for the registration of the transaction that occurred on January 25.
K Raheja Corp acquired the development rights through its subsidiary K Raheja Corp Realty, which will pay the full consideration to the sellers in six tranches. K Raheja Corp has already paid the seller the first tranche, which amounts to approximately 10% of the total consideration and totals more than Rs 27.51 crore.
It also recently paid more than Rs 120 crore for a 1.5-acre land parcel in central Mumbai’s Sion neighborhood from the K J Somaiya Trust, a public charitable trust.
According to the terms agreed upon by both parties, the developer will acquire an additional 0.4-acre land parcel adjacent to this plot in Sion in a separate transaction later. K Raheja Corp will own nearly 2 acres of land in the second tranche of the deal.