HDIL to cash in on Mumbai airport slum rehab

Real estate company Housing Development and Infrastructure Ltd’s (HDIL) major slum rehabilitation project at the Mumbai international airport is witnessing momentum after being in limbo for months.

The Mumbai Metropolitan Region Development Authority (MMRDA) has begun shifting eligible slum-dwelling families from the airport area to the developer’s Kurla compound.  Analysts see the development bringing in clarity on transferable development right (TDR) volumes of HDIL for the coming quarters.

“The MMRDA has commenced the shifting of eligible slum dwellers from Mumbai International Airport (MIAL) slums to Kurla Premiere compound. Allotment letters have been issued to the eligible slum dwellers,” HDIL said in a statement. The shifting of the slum dwellers is a part of the Phase I of the MIAL slum rehabilitation project undertaken by HDIL.

“From what we understand, the tenants under the Khar elevated road are being shifted at the moment. The shifting could be completed within a month,” said Hariprakash Pandey, VP-finance, HDIL. The total number of tenements under Khar elevated road is said to be around 600 to 700 families.

Analysts said the move is definitely positive for the company as it gives some hope on the project and further clarity on TDR volumes.

On an earnings call last month, Pandey had said that the outlook on TDR sales depended on the approval process of the MIAL project.

“We did close to 0.85-0.9 million square feet in the last quarter of fiscal 2011 and I think we are confident that this kind of rate can be maintained at least for close to a year. Again the future depends on the whole approval processes.”

“This recent announcement gives more clarity on the TDR volumes and its target for TDR sales this financial year looks achievable, which earlier looked difficult,” said an analyst from a foreign brokerage.

Some analysts expect shifting of more than 20,000 families to be completed by the end of this year.

A note from Anand Rathi Financial Services, said, “Shifting of families indicates visibility on the remaining phases, for which HDIL already possesses most of the required land. Hence, it could now look at developing such land parcels. Along with TDR generation, the shifting will also release free sale area.”