Wadhwa Group to collaborate with Thakur Group to develop a plot in Mumbai.

The Wadhwa Group, based in Mumbai, has concluded with a joint development agreement between Thakur Group, to develop a two-acre parcel of land located in Kandivali’s suburb. The two firms are planning a 350,000 square feet development potential residential project on the land.

The Wadhwa Group will take care of the development, approvals, constructions, design and sale in the context of the proposed agreement, while the Thakur Group, landowner, will be clearing the land title.

They plan to offer two and three-bedroom apartments of about 650 sq ft with a surface area of up to 1,130 sq ft. The TW Gardens project is estimated to generate Rs 900 crore revenue.

“We plan to develop an area of 3.5 lakh sq ft and thus expect revenue of approximately Rs 900 crore,” said Wadhwa Group managing director Navin Makhija. “The project’s funding will come from free cash flow from our other projects and project financing, which is about to be finalized”. 

The government’s policy interventions, including the enforcement of the Real Estate (Regulation & Development) Act, 2016, the Indian Goods & Services Tax, and demonetization resulted in real estate sector consolidation. Several market developers are looking for partners to associate through joint developments, joint ventures and even exiting a couple of projects completely.

In the past, developers chose to invest in the creation of a land bank and sought cheap land parcels for later development in upcoming areas. With its evolving business environment under the RERA and GST structures, developers have taken their business models into consideration.