Ajmera Realty, Rustomjee JV to undertake Rs 760-cr redevelopment project in Mumbai’s Bandra

Property developer Ajmera Realty & Infra India Ltd (ARIIL) and Keystone Realtors have entered into a joint venture to undertake redevelopment of a housing society in Mumbai’s plush Bandra west locality. Both the companies will hold a 50% stake in the joint venture, Ajmera Luxe Realty

Ajmera Luxe Realty, a joint venture between listed property developers Ajmera Realty & Infra India Ltd (ARIIL) and Keystone Realtors that operates under Rustomjee brand, will undertake a redevelopment project in Mumbai’s plush Bandra West locality.

“Bandra has been one of the key markets where we have delivered multiple marquee projects…Urban rejuvenation or redevelopment as a format has worked well for us. This partnership with Ajmera Realty will benefit the city, existing homeowners, and potential buyers alike,” said Boman Irani, CMD, Rustomjee.

Both companies will hold a 50% stake in the project that is expected to generate a Gross Development Value (GDV) of Rs 760 crores. The joint venture will develop a luxury residential project with an estimated carpet area of around 130,000 sq ft for sale.

“Our commitment to elevating aging housing societies into a contemporary residential asset class, offering our customers a premium lifestyle, remains a driving force. Positioned to seize the growing demand, we strategically diversify our portfolio across Mumbai’s luxury landscape,” said Dhaval Ajmera, Director, Ajmera Realty.

According to him, the partnership will align with the company’s long-term growth strategy, centered on low-capex acquisitions, contributing to our overarching goal of achieving 5 times growth.Real estate projects involving redevelopment of old housing societies and rehabilitation are the mainstay of Mumbai region’s property market as the land-starved city and its peripheral areas have few vacant land parcels.In July, the government of Maharashtra said that a member of a housing society that undergoes redevelopment need not pay stamp duty on the allotted permanent accommodation as part of the project.

Following this, the member of the housing society undergoing redevelopment is expected to pay only Rs 100 as stamp duty, while the principal agreement between the development and the housing society will be charged as per the conveyance.

The state government’s decision is expected to help push redevelopment of many old and dilapidated housing societies across key cities of the state.

Mumbai property market has continued its record-setting spree to surpass all the benchmarks and scaling a new all-time high in 2023 with its best annual performance ever despite higher interest rates and rising property prices. This performance is driven by luxury, premium, and mid-income segment properties.

The country’s commercial capital has achieved a new peak in terms of both, registration of properties as well as state exchequer’s revenue collection through stamp duty charges.