In one of the biggest redevelopment projects ever in Mumbai, DB realty has got the contract for 57 acres of prime land at the Bandra government colony. At a market rate of Rs. 25,000 per square feet, the developer would generate a revenue of Rs. 5,000 crore from this deal.
"It is the biggest project for us in terms of value," said Vinod Goenka, managing director, DB Realty.
The state government on Tuesday awarded the contract to DB Realty to reconstruct the residential complexes. In addition, 4,000 flats would be offered to the government free of cost and a premium of Rs. 800 crore paid.
In return, DB Realty would get 20 lakh square feet as free sale area adjacent to the Bandra Kurla Complex. The total investment by the Group is pegged at Rs. 2,500 crore and the project is set to be completed within five years.
The state has divided the 95-acre government colony into three sectors; the other two sectors have been given to Ackruti Developers and the Pune-based Kakade group.
The government colony has 250-odd buildings for Class I to Class IV government staffers. They will now be rehoused in 15, 12-storey buildings.