Real Estate firm Avighna group is looking to partner with HBS realtors for Worli Project.

Avighna Group, a real estate developer, is in advanced discussions with HBS Realtors to conclude a joint agreement on the development of a residential project of Rs 1,800 crore projects in Worli, Mumbai. The project is estimated at a total development capacity of 0.72 million square feet and will spread across 3.4 acres of land along Dr Annie Besant Road in Worli.

The Avighna group will take control of the full implementation and marketing of the project as part of the proposed agreement, while HBS Realtors will get in the land parcel.        

It is possible that Avighna Group will fund its share of investment in this project from internal accruals and sales collections.

The firm has recently sold Rs 350 crore apartments in the vicinity of the ITC Grand Central Hotel in the Lower Parel area of Mumbai, including One Avighna Park and Avighna 9 in its Avighna Estates project.

The project in Worli is expected to also include retail and commercial components in addition to premium residential development. However, the two companies still have to take part in these developments.

Nishant Agarwal, Managing Director, Avighna Group, stated: “It is us who will be responsible for the whole project as soon as the agreement is signed and it shall be based on the area share being discussed, but we have not yet finalized it.” We are looking to replicate a similar offer in other South Mumbai pockets based on the response to One Avighna Park & Avighna 9.

The transaction will be one of the largest in South Mumbai in recent years, as the luxury offering in this micro-market has slowed down until a few months ago. The situation is improving and that could be a turning point, according to market analysts.

“It is the best time for the financially well-placed developers to look at the growth in south Mumbai, as there is a range of lucrative opportunities. The luxury residential market here has been underperforming in the last few years but now appears to be growing from its slumber. Well-conceived and timely projects performed better than the average market,” said Ram Naik, Executive Director, Guardians Real Estate Advisory.

Recent changes to policy norms, such as the introduction of the Real Estate (Regulation & Development) Act, 2016, the Goods & Services Tax India and demonetization, have culminated in restructuring in the property sector. Many industry developers are searching for investors to be interested in joint developments, joint ventures or even exiting a few projects completely.

Previously, developers preferred investments in the creation of a land bank and found in the areas for future development low-cost land parcels. The changing operating environment within the RERA and GST systems has enabled developers to evolve to their business models.