Seeking to ride the real estate growth in the city, the BEST on Monday sold its one-acre bus station at Mahim for Rs32 crore.
The revamp will include office-building and a restroom for staff
Seeking to ride the real estate growth in the city, the Brihanmumbai Electric Supply Transport (BEST) on Monday sold its one-acre bus station at Mahim for Rs32 crore.
The plot was picked up by Delhi-based Parsvanath Developers, who was also the successful bidder for the redevelopment of the seven-acre Kurla bus depot put on the block by BEST.
The developer will revamp the Mahim bus station by providing facilities like an office building and a rest room for the staff, similar to that in Kurla.
Of the total space of about 87,000 sq-ft (using an floor space index of one), Parsvanath will get about 40,000 sq-ft for commercialisation. BEST has leased the land for a period of 60 years. According to the real estate experts, Parsvanath Developers has taken a risk by paying around Rs10,000 per sq-ft for the Mahim bus station deal.
Head of the Land Department of a Global Property Consultant said, "Realty market does not pick up much in certain areas, like Mahim and Jogeshwari.
If one takes into account the construction cost, the developer has paid a higher price for the land as the current market rate for flats at Mahim do not exceed Rs14,000 per sq-ft. His profit margin (a minimum of 30 per cent) will be much affected.''
However, Pradeep Jain, the managing director of Parsvanath Developers, said they have got a good bargain, considering the plot's proximity to Bandra-Kurla Complex, the alternate business district.
"We intend constructing premium residential apartments. While the ground floor will be used for commercial purpose, the first five to six floors will be reserved for car parking. There will be one apartment of 45 bedroom-hall-kitchen on each floor,'' said Jain, who hopes to sell these residential apartments at Rs18,000 a sq ft. The project is expected to cost roughly Rs70 crore.
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