MUMBAI: Tata Housing Development Company has entered into an agreement with Mumbai-based real estate developer Neptune Group to jointly develop a 10-acre residential project in Bhandup, an eastern suburb of Mumbai, according to two persons familiar with the matter.
Neptune will provide the land parcel and secure approvals from the civic authority, while Tata Housing, the real estate arm of Tata Group, will take care of conceptualisation, construction and marketing the project.
The project, estimated to have total development potential of 1.2 million square feet, has already secured all approvals to commence the work. Construction of the project is expected to be completed in four years.
The project on LBS Marg, once known for industrial factories but now transformed into a major residential hub, is expected to fetch revenue of Rs 1,700 crore. Ready apartments in the locality are priced at aboutRs 17,000-18,000 per sq ft, while Tata and Neptune are considering launching the project at Rs 12,500 per sq ft.
"The agreement was inked recently with the final terms that provide for branding of the project jointly by both the parties while sharing revenues in a certain proportion," said one of the persons, who did not wish to be identified.
To take the partnership further, both the developers were earlier also considering a space-sharing formula, which did not materialise, the person said.
Email queries to both Tata Housing and Neptune Group did not elicit any response until late evening on Sunday.
The land parcel to be developed under the joint venture is part of 22 acres of land that Neptune had acquired through an auction conducted in 2005. In one of the most expensive land transactions then, the developer had emerged as highest bidder with its bid of Rs 101 crore.
The 22-acre land parcel was earlier owned by British engineering firm, Guest Keen Williams ( GKW) and was put up for sale by IDBI and IFCIBSE 0.56 % in 2001 after they acquired it. The land housed residential accommodations of GKW's employees including bungalows for senior management until then.
Neptune built a retail mall on 6 acres of this land and a residential complex on another 6 acres. The developer constructed and sold 1.30 lakh sq ft of retail space in this mall to Metro Cash & Carry for Rs 84.5 crore.