Every business has its own characteristic with respect to the capital requirement for running the business. Some businesses require less capital and are termed as asset light businesses while others require huge capital investment and are termed as asset heavy businesses. The real estate business falls into the latter category starting with the cost of acquiring a land parcel, getting approvals at various stages and development costs; thus requiring large funds for completion of any project. Certainly, the working capital requirement for any company operating in the real estate business is huge as initially the funds are required to be deployed for construction related activities and at the later stage the selling takes place generating cash flows for the business. Hence, the business in itself is of high risk and high returns in nature.
Considering the nature of business, the buyer’s eye-brow often tends to lift up, asking what if the developer in the mid of construction activity faces some headwinds in terms of approvals or cash crunches and is not able to complete the project? What if the developer leaves the project in between? Well, the obvious response to these would be delays and disappointments. The solution to this kind of situation now a days’, is takeover of the existing mid-way project by some renowned developers’. The project located at Unnat Nagar, Goregaon West is a well known takeover project by the renowned real estate developer – Wadhwa Group from Polycon Realtors in 2014 and is named as Anmol Fortune.
The story goes long back to 2005 when a land parcel measuring 2.2 acres at the prime location of Unnat Nagar – Goregaon West was handed over by the local tenants to the Polycon Realtors. The Unnat Nagar area lies between S.V. Road and Link Road and is less than 5 minutes drive from both the parallel roads. Apart from that, it is easily accessible to the Western Express Highway and Goregaon railway station. Thus, the project’s advantageous and prime location; has grabbed many eyeballs. The developer and the tenants had agreed upon for construction of 4 Towers viz: A, B, C and D with a distribution of flats to the existing tenants and the balance new flats to the prospective buyers’. Based on such agreement, the construction activity was started with Tower C and went good upto 10 storeys of the proposed 20 storeys. However, post that, the construction activity unfortunately halted due to some financial crunches faced by the developers – Polycon Relators. It did not move further for many years then until it was takenover by the Wadhwa Group.
With around 9 years post the initial construction was started; the said project development was taken over by the Wadhwa Group from the Polycon Realtors. With this takeover, the hopes of the discontented tenants rightly came back bringing cheers. The Wadhwa Group did not break the tenants hopes’ with giving out the possession for Tower C (all 20 floors) which was half constructed (10 floors) by the previous developer – Polycon Relators. The top 10 floors (11th to 20th) were constructed by the Wadhwa Group with some of the existing tenants has already shifted in their new homes in Tower C.
The Tower C which is now ready for possession has Ground + Podium + 20 floors and is constructed as per the old Development Control Regulation (DCR) norm which has a Balcony. The tower C is of 20 storeys with 4 flats on each floor (excluding 2 refuges) thus, comprising of 78 flats. Out of such 78 flats, 18 are allotted to the existing tenants and the balance is let out for sale by the Wadhwa Group. Further, as per the developer, most of the flats are sold out and currently only limited inventory is left for sale in Tower C.
As per the plan of the Polycon Developers, apart from Tower C, other Towers namely A, B and D were registered and proposed under the said land parcel however the same was not feasible with the new developer. Hence, the Wadhwa Group proposed to construct Tower E and F as against the previously proposed Tower A, B & D. The flats are available for sale in Tower E and F which are fully developed by the Wadhwa Group.
Thus, with the takeover of the project by the Wadhwa Group, the existing tenants got a sigh of relief as the hope for timely & better execution remains the key for the project. We would be discussing all the other parameters (in terms of advantageous location, pricing, area and much more) of the other two towers (E & F) of the Anmol Fortune project located at Unnat Nagar Goregaon West in our next note.