Omkar Realtors to invest Rs 700 cr on 2nd phase of Mumbai slum redevelopment project

Mumbai-based Omkar Realtors today said it will invest about Rs 700 crore to develop the second phase of its new mixed-use housing project at Andheri in Mumbai.

The company will develop 600 flats in the second phase in a price range of Rs 93 lakh to Rs 2.65 crore.

This project is a part of 65 acre slum redevelopment project 'Omkar International District' where the company would be developing around 14,000 units for slum dwellers and another 9,000 units for sale. It will also have 4 million sq ft of commercial development. "We are launching the second phase of our 65-acre redevelopment project," Omkar Realtors Senior Vice President Rahul Maroo told reporters here.

The company has started seeking expression of interest (EoI) from prospective buyers. Asked about the investment, he said the project cost for second phase is about Rs 700 crore.

In December last year, Omkar Realtors announced the first phase wherein it is investing about Rs 1,700 crore to build 1,200 flats.

Maroo said the company has sold almost all units launched in the first phase. "We are expecting a sales realisation of about Rs 2,700 crore from both the phases," he added. He highlighted that 5 per cent of total units launched in the first phase were bought by buyers from the Delhi-NCR region and therefore the company has launched various marketing activities here to tap more buyers.

"The project with a fair share of inventory under sub-Rs 1 crore bracket holds strong attraction for pan-India customers and investors looking at buying in country's primary realty market," Maroo said.

"Not only does this ticket sizing compare well with Delhi and Gurugram markets, it holds attractive ROI (return on investment) proposition at current pricing level," he added.

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Omkar Realtors has so far delivered 15 projects in Mumbai and is currently developing another six. It is targeting to complete 20 million sq ft area by 2018 in Mumbai and has additional 40 million sq area in pipeline. The company has rehabilitated more than 60,000 slum dwellers in Mumbai under the Maharashtra government's Slum Rehabilitation Authority (SRA) housing scheme.