As the trend of selfredevelopment picks up, two societies from Borivali’s IC Colony join the bandwagon; MDCC Bank approves Rs 5 cr loan each for the projects.
Two more housing societies from Borivali’s IC Colony have opted for selfredevelopment of their old buildings in indications that the trend is going to pick up big time in the coming year.
The residents of Jayakunj and Harmony buildings in IC Colony performed bhoomi pujan of the projects this week. The twostorey buildings will be redeveloped into sevenstorey structures with the help of Wedevelopment, a company that will provide endtoend services to execute the project with the funding coming from the Mumbai District Centre Cooperative Bank
BJP MP Gopal Shetty, BJP MLA and chairman of MDCC Bank Pravin Darekar were present at the bhoomi pujan to support the initiative. The MDCC Bank has sanctioned Rs 5 crore loan each for the projects. Shrikant Kunte, secretary of Harmony housing society, said that when they decided to go for redevelopment of their 30yearold building, they took the traditional route of inviting proposals for developers.
“But our plot area is 350 sqm and the builders, who showed interest, offered 20 to 22 per cent extra carpet area in the redeveloped project. All seven members in the society felt that it was too less. We then heard about the concept of selfredevelopment and decided to examine the option,” Kunte told Mirror.
The society then approached Wedevelopment headed by Pranay Goyal, who provided extensive presentation on the benefits of selfdevelopment.
“Under the selfredevelopment model, we will now get 41 per cent extra area. We have two sizes of flats — 420 sq ft and 650 sq ft. Both will get 41per cent more carpet area. Wedevelopment will provide us endtoend services from getting approvals till possession and execute the project within 18 months,” Kunte said, adding that the commencement certificate is expected within a week after which construction will start.
Vijay Lade, chairman of JayaKunj CHS that has eight flats of 460 sq ft each, said his society too went through the regular developerdriven process initially, but was not happy with the extra carpet area offered. “In self redevelopment, we are getting 44 per cent area. Wedevelopment is providing us all the services. More importantly, the society members will retain the control of the project. We have tied up with HDFC which will help us sell the saleable component for a brokerage,” said Lade.
Lade said that when the project is complete, the profit will be shared by all society members in equal measure. “The sevenstorey building will have nine saleable flats and expected to generate Rs 16 crore at the rate of Rs 24,000 per sq ft. We expect a profit of Rs 3.5 lakh per member,” he said.
Wedevelopment’s managing director Pranay Goyal said his company has empanelled building contractors, architects and other experts. “The initial stage in selfredevelopment like arranging finance, gearing up to make tough and critical decisions, working with different professionals gives societies major jitters. But, we bring to the table professional management, transparency, risk mitigation, and most importantly, structured processes. We will have daily and weekly briefings to the society once the projects go live,” said Goyal.