RNA to redevelop large Chembur housing colony

RNA to redevelop large Chembur housing colony
Mumbai-based property developer RNA has bagged a Rs 1,000-crore project to redevelop Subhash Nagar Colony, one of the oldest and biggest settlements in Chembur. The project involves reconstruction of 57 buildings built by the Maharashtra Housing and Development Authority in 1950. The colony is spread over 40 acres and each building has 36 flats.
On completion of the project, tenants will be rehoused in flats admeasuring 320 sq ft, with 65 sq ft of open space. RNA has already begun work on the project and has given transit accommodation to tenants in five buildings.
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Redevelopment of the city's old buildings is a big business opportunity as the government is encouraging realtors with tax incentives and higher floor space index. The city has some 16,000 buildings that qualify for redevelopment.
Under the redevelopment scheme, old and dilapidated buildings are knocked down to construct taller residential buildings and create more space for commercial activities, thereby boosting returns on investment.
"To support development of this scale, the company has undertaken extensive infrastructure enhancement, like setting up drainage and sewerage systems, underground water lines, recreation grounds, playgrounds and internal roads," RNA vice president Manoj John said.
He claimed that the tenants need not pay maintenance costs as the company has taken care of it. "We have opened a fixed deposit account, which generates substantial monthly interest. This amount is big enough to take care of maintenance and other costs that normally are borne by the society," Mr John said.
Over the past 10 years, RNA has developed 15.5 million sq ft. It now has as much as 12 million sq ft under development across residential, commercial and SEZ sectors.