63-storey residential towers in Wadala

MUMBAI: A year after Indiaas largest land deal at Rs 4,050 crore was struck, the winning bidder, Lodha Group on Tuesday launched a mixed development project called New Cuffe Parade, on the 23-acre Wadala land controlled by the Mumbai Metropolitan Region Development Authority ( MMRDA).

In the first phase, the developer will build two 63-storeyed residential towers. MMRDA has allowed development on six acres while the remaining land will be left open for green spaces.

The pre-launch price was pegged at around Rs 12,000 a sq ft, but has since increased to Rs 13,000 a sq ft. as this project will entail an investment of Rs 10,000 crore over the next five to seven years,a? said Abhisheck Lodha, the MD of Lodha Group.

However, MMRDA has still not handed over possession to the builder. A casting yard for the city's upcoming Metro project occupies a large chunk of the property.

MMRDA chief Rahul Asthana said if the casting yard is removed, it will affect the Metro project. "We have still to hand over a portion of the land to Lodha," he said. The Metro contractor has parked its equipment on this land for a few more months and is expected to vacate it by November, it is learnt.

Asthana said Lodha Group paid the MMRDA over Rs 400 crore in the past one year for the land. Perhaps the biggest advantage of the Rs 4,050-crore transaction is the easy payment schedule laid out by the MMRDA. Lodha will shell out this amount over five years with a 10% annual interest (which takes the figure to over Rs 5,700 crore). Of this, barely 30% of the amount will have to be paid in the first three years. The MMRDA had set a reserve price of Rs 1,980 crore.

Asthana said the six-acre sprawl will allow the developer for the first time ever to utilize an unheard of floor space index (FSI)19. The average FSI a"the ratio of the permissible built-up area vis-a-vis the plot size in Mumbai is between 2 and 4.

The plot falls along the upcoming monorail line between Jacob Circle and Chembur via Wadala and is close to the Eastern Express Highway.