REDEVELOPMENT FEASIBILITY

REPORT PROCESS

By Anup D. Gupta.

BE. Civil, L.L.B., M.B.A. Project Management Consultants.

REX – PMC REX – BMC

REX – GSS

REX – PMC REX – BMC

REX – GSS

Redevelopment work consist of 6 stages.

1. Land rights.

2. Building design – FSI calculation.

3. Cost factor .

4. Sharing of benefits.

5. Demolishing old building and

6. Construction Of new building.

• Due to improper maintenance , the deterioration has affected the service life of building. It may not work for more years.

• Plinth level has become lower than road level , thus major water logging during rains.

• Climbing 3 / 4 floors has becoming difficult .

• Absence of Common facility. ( society office / parking / gym / children play area, etc. )

• Need of additional space ,Due to increase in family members. Not able to purchase another flat due to Cost of property too high.

OLD BUILDING - Issues

OLD BUILDING

• In old building normally 1 FSI is provided.

• These 1 FSI is equal to plot area.

• Land rights is 1 sq ft land = 1 sq ft flat area.

NEW BUILDING

• For new building normally 3-5 FSI is given depended on type of owner ship of same.

• These 3-5 FSI is proportionate to plot area.

• Land rights will be

1 sq ft land = 4 sq ft flat area.

REX – PMC REX – BMC

REX – GSS

LAND RIGHTS

• Land rights are rights of indigenous people to land.

• Land right as per document called conveyance dead and property card.

• Land right as per document referred to as Private, MHADA, Collector, MMRDA, BMC, Gaothan, Lease Hold, Farm Land.,etc.

REX – PMC REX – BMC

REX – GSS

Land Rights

• The majority of redevelopment are being planned on Private and MHADA plot.

( All Around suburbs )

• Private plot is allowed 1:2 ( 1 land + 1 TDR )

• MHADA plot is allowed 1:4 ( 1 land + 3 TDR )

• Private and MHADA are different calculation in redevelopment.

• On top another 35% Funjible Fsi is allowed by MCGM.

REX – PMC REX – BMC

REX – GSS

BUILDING DESIGN- FSI CALCULATION

The FSI for New building that are as follows:

Old plot 25000 sq ft = FSI = 1 (25000 sq.ft.)

To plan. Consider a plot having 25000 sq.ft.

plot area as per old FSI = 1 i.e. 25000 sq.ft.

1. TDR = 1:1 (25000 sq.ft.)

(Transfer of Development Right)

These 1:1 one TDR is required to be purchased.

Total FSI = 2 i.e. 50000 sq.ft.

REX – PMC REX – BMC

REX – GSS

2. On that 2 FSI area add funjible FSI 35% so it become 2.7 FSI i.e. 67500 sq.ft.

3. On these 2.7 FSI area increase 25% for common area ( staircase / lift / passage ) so it become 3.5 FSI i.e. 84375 sq.ft.

4. On area of point 2, increase 50% for parking, it becomes Overall Construction Area = 1 Lakh sq.ft. Approx.

REX – PMC REX – PMC

BUILDING DESIGN- FSI CALCULATION

CONCEPT PLAN

Main points to consider / required:

1) To measure the plot.

2) Measure the Road at all side.(9m)

3) Fix the Open Space

As per Old Bldg (H/3)

As per New Bldg (H/4)

4) Find / Fix the height of Building/Air path.

5) Fix the common Area which is 25% of actual Area.

6) Fix the FSI to be used.(1: 3to5)

REX – PMC REX – BMC

REX – GSS

COST FACTOR

The following points are involve in cost factor:

• Land cost : R/R + 100% (already owned)

• TDR cost : 50% from govt. to buy : @ 60% R/R

50% from market (at negotiate price )

• Fungible FSI : 35% to old member (free)

: 35% to sale part ( to purchase )

• Common area : to old member area (free)

: to sale part area ( to purchase )

25% on total area @25% R/R

REX – PMC REX – BMC

REX – GSS

• Construction : 2500 to 4000 sqft

cost (as per area)

• Parking : 1000 to 1500 sqft

• Govt. approval : 150 (official) ,

1000 ( Others )

• Professional : 200 – 300 (per sqft)

PMC : 50 / Design : 50

Site Execution : 100 / Liasion : 50

Legal & others : 50.

REX – PMC REX – PMC

Find out sale carpet rate ?

• Refer newspaper advt for sale of ready flat / under construction bldg / Under new launch.

• Check ready recknor rate / running year.

• Check property sale websites - Makan.co m, 99acres.com, Magicbricks.com , housing.com , etc.

• Ask the clients / few members .

• Ask Property agents of local area.

• Refer newspaper rates / property times.

• Note all – but consider average of all .

BASIC CONCEPT OF STAGES FOR REDEVELOPMENT

Sharing of benefits – Developer

• To invest project cost over / conduct business over 30 months.

Benefit - 30% + profit on project cost ( Project must be bankable)

Sharing of benefits – Society member / plot owner

• Plot owners /society to offer - – Depart proportionate land

Rights and allow developer to construct building.

• Benefit - Extra carpet area (At least one room extra ) with

Rent & Corpus amount for other expenses, etc.

Expenses from benefit amount :

• Rent -24/30 months / Shifting -15 to 50,000/-

• Corpus –New taxes + furniture …

(old taxes:1-2 Rs/sqft, new taxes:5-10 Rs/sqft)

REX – PMC REX – BMC

REX – GSS

Builder Re-development 1 PMC prepares Financial – workable feasibility report

2 SGBM approves the report & expects builders to fulfill each & all promises

3 Tender floated to search for developer , to aid & manage entire project.

4 Developers appointed & enters into DA, gets development rights from

society. Prepares draft Concept plan for society approval with options to

accommodate more area .

5 On plan asks & Invites ( members ) to purchase additional area @10%

discount , over & above free area promised. Collects fund ( cash part only )

sufficient to get the building plan approved from BMC – IOD.

6 Keeps more purchaser in waiting to sale the demanded area at higher rate

on IOD , to collect fund / cost of rent & corpus amount.

7 Building design & plan prepared & submitted to BMC for approval – IOD.

8 Existing members vacates building to allow the construction.

9 Appoints contractor to take - do only construction work, in exchange of / in

lieu of salable carpet area proportionate to total construction cost.

Contract Re - development

PMC prepares Legal – Technical – Financial – workable feasibility report.

SGBM approves the report , Agrees to allocate the work to designated professionals

and expects them to perform.

PMC – Architect prepares concept plan – SGBM approval

Concept plan – PMC to search for options & proposals of finance procurement /

modalities. Through ( members + relatives + investors + fund houses + Banks , etc. )

Funds necessary to do building plan approval till – IOD , assured & collected at

society.

Keeps more purchaser in waiting to sale the demanded area at higher rate on IOD ,

to collect fund / cost of rent & corpus amount

Building design & plan prepared & submitted to BMC for approval – IOD.

Tender floated to appoint contractor cum developer to take - do only construction

work, in exchange of / in lieu of salable carpet area proportionate to present market

rate.

Existing members vacates building to allow the construction.

Self Redevelopment

PMC prepares Legal – Technical – Financial – workable feasibility report.

Collects 25% fund from members.

Plan submitted to BMC for approval – IOD .

Members arranges required project fund through themselves or BANk.

Tender floated to appoint contractor cum developer to do only construction work

against payment.

Members arranges & finances for transit accommodations.

Existing members vacates building to allow the construction.

Construction takes place as per order .

NEXT STAGE Program the redevelopment with

basic to remain intact.

We all need to think deep and explore better possibilities.

Thanks

Rex Con Cor Consultants Pvt. Ltd.

ANUP GUPTA

Gruha Sankalp Sanstha

REX – PMC REX – BMC

REX – GSS