Realty experts have pegged the value of the sea-facing Adarsh Nagar society in Worli at `1,500 crore post redevelopment. But CRZ, under which the middle-income group (MIG) housing colony falls, could prove to be a stumbling block.
The property’s value would be affected by the CRZ rules, as there are height restrictions on buildings under it. Though Nimesh Shah, the society’s secretary, claimed that they had all the required clearances for redevelopment.
"In April, the Hindustan Unilever Gulita building that is spread over an area of 1 acre in Worli was sold for `452 crore and that too fell under CRZ. Developers can buy TDRs and still develop the building and make a healthy profit," said Ambar Maheshwari, managing director, corporate finance, Jones Lang LaSalle India.
The society was to be redeveloped in 2002, but the plan was shelved due to a dispute among members over the share they would get from the additional space. This time, only 4 members of the 224 members raised objection. While 50% of the additional space would be equally shared among members after redevelopment, the remaining space would be shared on pro-rata basis. "[The society has] Resolved long-standing differences over the issue of distribution of main benefits of redevelopment, namely, additional area and corpus fund by adopting the historic "fifty-fifty formula" by overwhelming majority [98%]," the society said in an internal circular.