Godrej Properties to develop luxury apartments at the famous RK Studios.

Godrej Properties Ltd (GPL), a real estate company, has unveiled a luxury residential project at the famous RK Studios in the tony Chembur neighborhood, the southern part of Mumbai. The company is releasing the 3 and 4-bedroom Collector’s Edition residences, it said in its release.

Bombay Art Deco influences the architecture of these luxury buildings. The building will deliver state-of-the-art facilities, high standards and strong security features.

Pirojsha Godrej, Executive Chairman of Godrej Properties said: “We will try to ensure that we celebrate a distinguishing legacy with an evolution which offers an excellent lifestyle for its residents.”

Located on the main Sion Trombay road, Godrej RKS provides connectivity to all parts of Mumbai via a network of roads and is well-developed social and civic infrastructures.

Godrej Properties has purchased the parcel of land for an estimated Rs 2 billion cost, as per the analysis conducted by ICICI Securities, and the GPL offers 146 units across 3 wings.

“Our channel tests show base ticket sizes of Rs 60-110 million (USD 1-1.5 million), which for this project suggests a possible sales value over Rs 10 billion,” the analysis says.

The study indicated that launching RK Studios could give the Mumbai market a dynamic sales momentum.

The Maharashtra RERA website says the project will include 146 luxury housing units — (25) 2 BHKs, (93) 3BHKs and (28) 4BHKs. The date of possession is said to be 31, Dec 2023.

In the beginning, the GPL will offer 99 units in 3 and 4 BHKs with base ticket size of Rs 60–110 million for the carpet area between 1,315-2,258sft, which means Rs 43,000–48,000/psf or Rs 27,000–30 000/psf for carpet area prices on a sellable level, assuming an efficiency ratio of 36%, the analysis stated.

The analysis suggested that over the next three-four years the project would generate more than Rs10 billion in GPL revenues.

Price for other neighbouring projects is 15-20 per cent premium and ticket sizes match Lower Parel and Worli luxury projects in Central Mumbai.

ICICI Securities said that a strong response to the project would be to show the brand value of the GPL and its ability to attract demand in an inactive luxury Mumbai market.

“In addition, the cost of the construction is calculated at Rs 6,000 psf including FSI/approval costs. It is estimated that the project will be worth Rs 4.1 billion (including Rs 2 billion land cost), with the EBITDA margin over 60 per cent, taking account of the revenue potential of over Rs 10 billion,” it said.