Page 24 - Construction_Opportunities_March_2023

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CONSTRUCTION KNR Constructions Limited is in receipt of Letter of Award for With this acquisition, Labdhi will be the lead developer of the
KNR CONSTRUCTIONS LTD RECEIVES LOA FOR ROAD PROJECT
project now named as ‘Labdhi Searene’, which will be a mixed-
use property led by premium residential development, spread
Construction of Access Controlled four laning with paved shoulder
from Mysore to Kushalnagara Section of NH-275 from Design Ch.
spread over 1.25 acres of land parcel. The project has a total
development potential of two lakh sq ft carpet area across
Km 195+550 at Yalachahalli near SH-117 Yelawala-KR Nagara
Road Junction to design Ch. Km214+535 joining (at Ch. Km
residential, commercial, and retail spaces. Labdhi Lifestyle
131+180 approx) to Srirangapatna bypass near Paschima Vahini
will invest over `200 crore towards project development and
under NH(O) in the State of Karnataka (Package V). The bid project
expected to be completed in two years’ time and is estimated to
cost is `690.30 crores. The Construction period is 24 Months &
have a revenue potential of a total `600 crore. The development
Operation period is 15 Years from COD. repayment of debt raised from both the lenders. The project is
Stressed project finds saviour in Mumbai is part of a slum rehabilitation project, wherein Rajesh LifeSpaces
Realty developer Labdhi Lifestyle has acquired a stressed project has already completed the rehabilitation portion. The developer
of Rajesh LifeSpaces near Bandra-Kurla Complex (BKC) in Mumbai is developing a similar project over three-fourth of an acre in
through a quadri-partite agreement between both the developers central Mumbai’s Wadala locality, in which 85 percent of the work
and the project’s financiers, Mirae Asset and JM Financial. is completed and delivery is expected by the end of 2023.
SIDDHA GROUP STARTS HANDOVER OF SIDDHA SEABROOK address at Kandivali(W) due to its location advantage and
Siddha Group has started handing over ‘Siddha Seabrook’, its first connectivity to the rest of the city.” Prices of apartments start from
premium project in Mumbai. This iconic 57 floors premium tower `1.59 crore to `3.85 crore. The tower has a total of 282 units. ‘Siddha
is located at Kandivali (W), Mumbai, and boasts of being the Seabrook’ is located at Mathuradas Road and junction of Link road
tallest residential tower in this zone. It comprises of 2 &3 BHK + Sky which is considered the central hub of Kandivali. It is within walking
Garden premium apartments. It offers residents numerous lifestyle distance of Dahanukarwadi Metro station and in close proximity
features, with spectacular views of Mumbai’s skyline, against the to the upcoming coastal road and the Goregaon-Mulund Link
backdrop of Sanjay Gandhi National Park. Road. Kandivali (W) is well connected through Link Road, SV Road
Siddha Group has begun the process of handing over the keys and Western Express Highway. It is also well-connected to Thane
to the respective homebuyers at fit out stage. Samyak Jain, via Ghodbunder Road and Gujarat via Mumbai-Ahmedabad
director, Siddha Group, said, “We worked against all odds during Highway through Dahisar check naka. The newly opened Metro
the pandemic, setting strict timelines so that we could deliver our Line 2 will connect Dahisar (E) to DN Nagar passing through the
project as per schedule. This project promises to be a landmark area, making easy commute for residents of Kandivali.

LAND COST MAKING IT HARDER TO SUSTAIN REAL ESTATE changes and constant changes affect projects,” he said and
PROJECTS: TATA REALTY MD & CEO cited some examples where changes in building rules led to
The development of real estate projects in India is becoming increase in cost of projects. “So, you are under constant attack
unviable due to high cost of land, capital and construction, along from changes of regulations,” Dutt said.
with other economic uncertainties, said Sanjay Dutt, MD and CEO Builders also have to deal with “some global crisis, some
of Tata Realty and Infrastructure Ltd. Dutt, who also heads Tata economic crisis, some political crisis” which happens in 5-6 years
Housing, said the government as well as judiciary should hold of construction cycle of any real estate project.
accountable all stakeholders that are involved in approval and “Developers have to absorb all these variances, which are
development of real estate project to make things easier. negative variances from profitability point of view, because we
Real estate projects are on the verge of becoming unviable, are responsible under the RERA (realty law),” he said.
he remarked. When asked about the factors making projects Dutt said there are “lot of risk and uncertainties” in developing
unviable, Dutt pointed out, “Real estate requires a lot of capital real estate projects and the entire responsibility lies on developers
in India, first of all to acquire land. In major cities such as NCR, for completing the project on time. “If the government can
Mumbai and Bengaluru, it (land cost) is almost 50% to 80-85% consider making all stakeholders accountable, it will make a big
of the project cost.” Elaborating further, he said the developers difference,” he said.
launch projects at a price based on the current input cost, but the He also emphasised on better implementation of Right to Services
same can rise significantly during the 5-6 year construction period. Act in many states for ensuring timely approvals for real estate
“You decide to launch today at a price but you don’t know the cost projects. Dutt also pointed about low rental yield in India’s housing
of steel and how much it will change in the next five or six years. sector, which is only 2%, while it is about 5-6% across the world.
That you have to absorb, but you’ve already sold the project,” said “Our job markets are highly driven by BPOs and salaries are lower.
Dutt. He said the builders are forced to absorb increase in costs of But in developed economies, there are investment bankers,
construction materials and interest, among others. insurance companies, and the salaries are much higher, so they’re
“So your project is constantly vulnerable to market,” he said, able to pay higher rent. But you can’t ask a BPO guy to pay 5%
adding that the builders do set aside some fund for contingencies yield on a residential apartment. So, these are the challenges
but the market setbacks could be much higher. that we face,” he said. Tata Realty and Infrastructure Ltd. and Tata
Moreover, he said the government is bringing reforms at a fast Housing are leading real estate developers of the country. It is
pace for boosting growth of the country. “There are constant developing housing and commercial projects across many states.

24 CONSTRUCTION OPPORTUNITIES|MARCH 2023