REDEVELOPMENT FEASIBILITY REPORT PROCESS By Anup D. Gupta. BE. Civil, L.L.B., M.B.A. Project Management Consultants.
Redevelopment work consist of 6 stages. 1. Land rights. 2. Building design FSI calculation. 3. Cost factor. 4. Sharing of benefits. 5. Demolishing old building and 6. Construction Of new building.
OLD BUILDING - Issues Due to improper maintenance, the deterioration has affected the service life of building. It may not work for more years. Plinth level has become lower than road level, thus major water logging during rains. Climbing 3 / 4 floors has becoming difficult. Absence of Common facility. ( society office / parking / gym / children play area, etc. ) Need of additional space,due to increase in family members. Not able to purchase another flat due to Cost of property too high.
OLD BUILDING In old building normally 1 FSI is provided. These 1 FSI is equal to plot area. Land rights is 1 sq ft land = 1 sq ft flat area. NEW BUILDING For new building normally 3-5 FSI is given depended on type of owner ship of same. These 3-5 FSI is proportionate to plot area. Land rights will be 1 sq ft land = 4 sq ft flat area.
LAND RIGHTS Land rights are rights of indigenous people to land. Land right as per document called conveyance dead and property card. Land right as per document referred to as Private, MHADA, Collector, MMRDA, BMC, Gaothan, Lease Hold, Farm Land.,etc.
Land Rights The majority of redevelopment are being planned on Private and MHADA plot. ( All Around suburbs ) Private plot is allowed 1:2 ( 1 land + 1 TDR ) MHADA plot is allowed 1:4 ( 1 land + 3 TDR ) Private and MHADA are different calculation in redevelopment. On top another 35% Funjible Fsi is allowed by MCGM.
BUILDING DESIGN- FSI CALCULATION The FSI for New building that are as follows: Old plot 25000 sq ft = FSI = 1 (25000 sq.ft.) To plan. Consider a plot having 25000 sq.ft. plot area as per old FSI = 1 i.e. 25000 sq.ft. 1. TDR = 1:1 (25000 sq.ft.) (Transfer of Development Right) These 1:1 one TDR is required to be purchased. Total FSI = 2 i.e. 50000 sq.ft.
BUILDING DESIGN- FSI CALCULATION REX PMC 2. On that 2 FSI area add funjible FSI 35% so it become 2.7 FSI i.e. 67500 sq.ft. 3. On these 2.7 FSI area increase 25% for common area ( staircase / lift / passage ) so it become 3.5 FSI i.e. 84375 sq.ft. 4. On area of point 2, increase 50% for parking, it becomes Overall Construction Area = 1 Lakh sq.ft. Approx.
CONCEPT PLAN Main points to consider / required: 1) To measure the plot. 2) Measure the Road at all side.(9m) 3) Fix the Open Space As per Old Bldg (H/3) As per New Bldg (H/4) 4) Find / Fix the height of Building/Air path. 5) Fix the common Area which is 25% of actual Area. 6) Fix the FSI to be used.(1: 3to5)
COST FACTOR The following points are involve in cost factor: Land cost : R/R + 100% (already owned) TDR cost : 50% from govt. to buy : @ 60% R/R 50% from market (at negotiate price ) Fungible FSI : 35% to old member (free) : 35% to sale part ( to purchase ) Common area : to old member area (free) : to sale part area ( to purchase ) 25% on total area @25% R/R
REX PMC Construction : 2500 to 4000 sqft cost (as per area) Parking : 1000 to 1500 sqft Govt. approval : 150 (official), 1000 ( Others ) Professional : 200 300 (per sqft) PMC : 50 / Design : 50 Site Execution : 100 / Liasion : 50 Legal & others : 50.
Find out sale carpet rate? Refer newspaper advt for sale of ready flat / under construction bldg / Under new launch. Check ready recknor rate / running year. Check property sale websites - Makan.co m, 99acres.com, Magicbricks.com, housing.com, etc. Ask the clients / few members. Ask Property agents of local area. Refer newspaper rates / property times. Note all but consider average of all.
BASIC CONCEPT OF STAGES FOR REDEVELOPMENT Sharing of benefits Developer To invest project cost over / conduct business over 30 months. Benefit - 30% + profit on project cost ( Project must be bankable) Sharing of benefits Society member / plot owner Plot owners /society to offer - Depart proportionate land Rights and allow developer to construct building. Benefit - Extra carpet area (At least one room extra ) with Rent & Corpus amount for other expenses, etc. Expenses from benefit amount : Rent -24/30 months / Shifting -15 to 50,000/- Corpus New taxes + furniture (old taxes:1-2 Rs/sqft, new taxes:5-10 Rs/sqft)
Builder Re-development 1 PMC prepares Financial workable feasibility report 2 SGBM approves the report & expects builders to fulfill each & all promises 3 Tender floated to search for developer, to aid & manage entire project. 4 Developers appointed & enters into DA, gets development rights from society. Prepares draft Concept plan for society approval with options to accommodate more area. 5 On plan asks & Invites ( members ) to purchase additional area @10% discount, over & above free area promised. Collects fund ( cash part only ) sufficient to get the building plan approved from BMC IOD. 6 Keeps more purchaser in waiting to sale the demanded area at higher rate on IOD, to collect fund / cost of rent & corpus amount. 7 Building design & plan prepared & submitted to BMC for approval IOD. 8 Existing members vacates building to allow the construction. 9 Appoints contractor to take - do only construction work, in exchange of / in lieu of salable carpet area proportionate to total construction cost.
Contract Re - development PMC prepares Legal Technical Financial workable feasibility report. SGBM approves the report, Agrees to allocate the work to designated professionals and expects them to perform. PMC Architect prepares concept plan SGBM approval Concept plan PMC to search for options & proposals of finance procurement / modalities. Through ( members + relatives + investors + fund houses + Banks, etc. ) Funds necessary to do building plan approval till IOD, assured & collected at society. Keeps more purchaser in waiting to sale the demanded area at higher rate on IOD, to collect fund / cost of rent & corpus amount Building design & plan prepared & submitted to BMC for approval IOD. Tender floated to appoint contractor cum developer to take - do only construction work, in exchange of / in lieu of salable carpet area proportionate to present market rate. Existing members vacates building to allow the construction.
Self Redevelopment PMC prepares Legal Technical Financial workable feasibility report. Collects 25% fund from members. Plan submitted to BMC for approval IOD. Members arranges required project fund through themselves or BANk. Tender floated to appoint contractor cum developer to do only construction work against payment. Members arranges & finances for transit accommodations. Existing members vacates building to allow the construction. Construction takes place as per order.
NEXT STAGE Program the redevelopment with basic to remain intact. We all need to think deep and explore better possibilities. Thanks Rex Con Cor Consultants Pvt. Ltd. ANUP GUPTA Gruha Sankalp Sanstha