Housing Studio Project

REDEVELOPMENT OF GUJARAT HOUSING BOARD CHANDKHEDA, AHMEDABAD GUIDED BY: PROF. MADHU BHARTI SHARMA AND PROF. RUTOOL SHARMA

DARPAN .R. TARWANI I PP0010517 HOUSING STUDIO I SEM 3

TABLE OF CONTENTS

01 02 03 04 05 06 07 08

METHODOLOGY SITE SELECTION PROCESS GHB CHANDKHEDA : PHYSICAL ASPECTS OF SITE

GHB CHANDKHEDA : DEVELOPMENT REGULATIONS GHB CHANDKHEDA : PRESENT SCENERIO REDEVELOPMENT OF PUBLIC HOUSING POLICY GHB CHANDKHEDA : STAKEHOLDERS ANALYSIS REDEVELOPMENT MODEL

METHODOLOGY

Land Potential Analysis

Site Selection

Area Study

Physical Aspects

Development Regulations

Legal Aspects

Market Study

Product Options Final selected option

Project Phasing

Timeline and Scheduling

NPV and IRR

Cash Flows

Marketing Strategy

SITE SELECTION PROCESS Site Selection Process

Selection of sites up to 8-10 Hectares across Ahmedabad

Type of projects considered for sites

Brownfield Project

Gujarat Housing Board Redevelopment

Textile mill land Redevelopment

Greenfield Project

Slum Redevelopment

Narol-Vatva

Nikol

Land potential analysis South Bopal

GHB Chandkheda

L A N D P O T E N T I A L A N A LY S I S - D E L P H I T E C H N I Q U E Key Parameters

Connectivity

Ownership

Frontage

LAND POTENTIAL ANALYSIS S.no.

PARAMETERS

GDCR

South Bopal Weightage

Scale (1 to 5)

Shape

Nikol

Score

Scale (1 to 5)

Road width

Narol-Vatva Score

Scale (1 to 5)

Chandkheda

Score

Scale (1 to 5)

Score

CITY LEVEL PARAMETERS 1 Distance from CBD 2 Proximity to major transport nodes (Bus stops, Airport, Railway) 3 Proximity of developed areas

2.875 3.5625 5

1 1 3

2.88 3.56 15.00

1 2 3

2.88 7.13 15.00

2 2 2

5.75 7.13 10.00

1 3 3

2.88 10.69 15.00

4.625 4.5 4.9375 3.75 5.3125 2.375

4 4 3 5 4 3

18.50 18.00 14.81 18.75 21.25 7.13

2 1 3 3 2 2

9.25 4.50 14.81 11.25 10.63 4.75

2 1 2 2 2 1

9.25 4.50 9.88 7.50 10.63 2.38

2 5 4 4 3 4

9.25 22.50 19.75 15.00 15.94 9.50

7.5 4.3125 4.625 4.125 4.1875 4.0625 4.375 4.75 5 2.375 2.125 4.875 5.5625 5.3125

4 5 3 3 5 2 3 4 3 5 2 5 2 5

30.00 21.56 13.88 12.38 20.94 8.13 13.13 19.00 15.00 11.88 4.25 24.38 11.13 26.56

3 5 5 5 5 5 5 5 4 5 5 3 3 2

22.50 21.56 23.13 20.63 20.94 20.31 21.88 23.75 20.00 11.88 10.63 14.63 16.69 10.63

2 4 4 5 5 3 5 3 1 3 3 3 1 2

15.00 17.25 18.50 20.63 20.94 12.19 21.88 14.25 5.00 7.13 6.38 14.63 5.56 10.63

3 5 2 1 3 4 5 5 5 5 5 5 4 4

22.50 21.56 9.25 4.13 12.56 16.25 21.88 23.75 25.00 11.88 10.63 24.38 22.25 21.25

LOCAL LEVEL PARAMETERS 4 5 6 7 8 9

Proximity to local business district Transport Connections (BRTS, MRTS, AMTS) Trunk Infrastructure Social Infrastructure Surrounding developments Environmental Quality (Air, Water)

SITE LEVEL PARAMETERS 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Total

Cost of Raw Land No. of Plots to be amalgamated Ownership Built/ Unbuilt Occupancy (legal/ illegal) Shape Frontage Road Width Plot level infrastructure Topography Vegetation DCR (Development Restrictions) Maximum Permissible F.S.I. Development on abutting plots

100.125

3

352.0625

2

339.3125

4

256.9375

1

367.75

Score 367.5 Site Selected – GHB Chandkheda

G H B C H A N D K H E D A - L O C AT I O N , C O N N E C T I V I T Y A N D E V O L U T I O N

2001

Chandkheda Evolution:

Study Area - 8.84 sq.km

As per the development trends from year 2000 to 2018, it is noticed that the development is observed majorly in the below mentioned areas :

2008

Tp – 44

New Chandkheda

AUTO STAND

METRO LINE – 2.4 km Away Chandkheda main road

AMTS BUS STAND

BRTS STATION

•

GHB Chandkheda is on the northern part of Ahmedabad city

•

GHB Chandkheda is well connected with the city by all the major transport networks

2018

New CG road

GHB CHANDKHEDA- PHYSICAL ASPECTS Built up

Land Use

47%

Typology

37%

43%

90%

Building heights

Recent development

45%

Major Inferences •

NEW CHANDKHE DA GHB Chandkhed a

TP-44 NEW CG ROAD

• •

Predominant existing land use in Chandkheda is Residential.

90% of existing built use in Chandkheda is Residential.

It indicates that the GHB Chandkheda land which has a very high potential at present is under utilized in terms of FSI usage.

G H B C H A N D K H E D A - D E V E L O P M E N T R E G U L AT I O N & O W N E R S H I P DTPS 75

TPS 44

DTPS 69 TPS 22

DTPS 20

Residential zone (R1) Zone as per Development Plan

Transit Oriented Zone Overlay Zone

2.7 Maximum FSI permissible

Gujarat Housing Board

4.0 Maximum FSI permissible

Residential zone (R1) This zone includes residential, commercial and mixed land permissible uses and intended for a low to moderate to high density.

uses

as per

Transit Oriented Zone (TOZ) •

•

GHB Chandkheda Land not under TP scheme

TOZ is an overlay zone which provides opportunity for mixed use and high density development along the BRT corridor and MRT corridor except in Crore Walled City, Industrial Zone –General & Special, SPD-2 Science Park and GIDC Estates.

High density development permissible in area falling within 200 meters on both sides on transit corridor.

Ownership as per land revenue records

Old condition Tenure

Non-agriculture

427/1, 477

Land use

Survey number

Source : CGDCR, AUDA AND GHB

GHB CHANDKHEDA- PRESENT SCENERIO

TP-44

NEW CHANDK HEDA

NEW CG ROAD

ONGC COLON Y

ONGC

Established

1970-80

Total site area

45ha

Redevelopment site area

15.5ha

Total number of houses

4480

Total population

30,000

LIG Houses

1750

EWS Houses

2001

MIG Houses

670

HIG Houses

60

Number of societies within

28

Source : GHB DATA

• •

Illegally constructed houses within the public housing colony From a total of 5284 units, around 45.71% are illegally constructed

• •

High density built fabric, small unit size Majority of the houses aged more than 30 years

• •

No development regulations • followed Narrow streets, no parking spaces provided, no proper infrastructure facilities provided

Open spaces encroached by illegal tenants and not properly managed

Source : GUJARAT HOUSING BOARD

REDEVELOPMENT OF PUBLIC HOUSING POLICY • NEED FOR THE POLICY

• •

Most of the old public housing scheme houses are in dilapidated condition or the use of FSI is less than required in those projects Such GHB or other housing projects can be redeveloped under this policy FSI as per policy is 3 or as per GDCR whichever is higher

COMPONENTS OF THE REDEVELOPMENT POLICY Redevelopment of public housing •

For Dwelling-3 (Apartment, Hostel): The maximum aggregate carpet area may be 140% of existing approved carpet area of the dwelling unit or dwelling unit of 30sq.mt carpet area whichever is higher.

STAKEHOLDERS OF THE REDEVELOPMENT MODEL

GHB SOCIETY

PUBLIC HOUSING POLICY- PROCESS 60% consent from the people within the society Floating of tender by Gujarat Housing Board Technical and Financial Bid Selection of Technical Bid

Additional affordable housing •

•

In case of public housing scheme consisting of dwelling units with existing approved carpet area more than 30 sq.m, the size of dwelling units of additional affordable housing shall be 40 sq.m carpet area.

The number of units shall be minimum 30% of the total units to be redeveloped

Selection of Financial Bid Negative Premium Cost of PHC units quoted by the developer

Source : GHB HOUSING POLICY

The developer may develop balance FSI remaining after redeveloping the existing housing units and construction of affordable housing units as permitted under general development control regulations for his own sale.

Positive premium Total number of additional Affordable units

Negotiations Tripartite Agreement

Free sale component •

GHB

Total Plot area PHC

AHC

Free sale

Handover of Free sale land parcel is done after 33% of the progress of PHC and AHC Source :PUBLIC HOUSING REDEVELOPMENT POLICY 2016, GUJARAT

R E D E V E L O P M E N T O F P U B L I C H O U S I N G P O L I C Y - P R O J E C T C YC L E PHC & AHC Tender Process

Negotiations

Land Procurement

Demolition

Clearances

Start of construction

BU Certificate Handover of Units

FREE SALE LAND HOLD- AFTER 50% RCC of PHC and AHC Free sale

Hold of free sale land

Clearances

RERA Registration

Free sale Project

BU Certificate

Commencement

Completion

RERA PROCESS For PHC and AHC - No RERA registration required Free sale land hold – 50% completion of RCC of PHC and AHC • • • • • • •

OC from Fire Department NOC for Height from Airport Authority of India (“AAI”) Environment Clearance from Rajasthan State Pollution Control Board (“RSPCB”) NOC from National Highway Authority of India (“NHAI”) Design and structural approval from National Building Code (NBC2205) Approval from National Authority Disaster Management Authority (“NDMA”) Any other approval as may be necessary and expedient.

Charges : For residential – Rs 5 lacs I For Commercial – Rs 10 lacs

Account

Land Title

Approvals

Board of Directors

Board of Directors

Authority

Documents

Documents

Form-A

Promoter Entity

Checklist

Developer

Source :PUBLIC HOUSING REDEVELOPMENT POLICY 2016, GUJARAT

R E D E V E L O P M E N T M O D E L : S TA K E H O L D E R S A N A LY S I S Established

1970

Total site area

45 ha

Redevelopment site area

15.5 ha

Total number of houses

852

Number of societies within

6

Average Household size is 3.5 85 % of Households have been staying for more than 35 years 55 % of the Households wanted their transit accommodation around 1-2 km.

Name of the Society

Type

Number of Units

Plot Area (sq.ft)

Carpet Area (sq.ft)

Vishnunagar

LIG

128

1200

480

Lakshminagar

LIG

96

1215

460

Shivshakti

LIG

308

900

350

Subhashnagar MIG

178

2025

900

Shradha park

LIG

82

360

350

karnavati

HIG

60

1925

1200

Around 45.71% construction is illegal

65% people are ready for the redevelopment but with the compensation of the land parcel

Existing scenario of houses

Disagree 15%

As alloted 36%

Incremental 39%

Upgallottedn 25%

MAJOR CHALLENGE Providing an apartment as per increased carpet area in the policy along with compensation for land value

REDEVELOPMENT MODEL: PUBLIC HOUSING COMPONENT (PHC) NAME OF THE SOCIETY

NO. OF UNITS

CARPET AREA(sq.ft)

NEW CARPET AREA (sq.ft)

PLOT AREA

Vishnunagar

128

480

672

1200

Lakshminagar

96

460

644

Shivshakti

308

350

Subhashnagar

178

Shradha Park Karnavati

COMPENSATIO N FOR 1 UNIT

TOTAL

54.6 lakhs (Rs 4550/sq.ft)

41.6 lakhs

53.2 Cr.

1215

54.6 lakhs (Rs 4550/sq.ft)

42 lakhs

40.3 Cr.

490

900

54.6 lakhs (Rs 4550/sq.ft)

22 lakhs

67.9 Cr.

900

1260

2025

54.6 lakhs (Rs 4550/sq.ft)

75.7 lakhs

134.74 Cr.

82

350

490

360

54.6 lakhs (Rs 6550/sq.ft)

3.15 lakhs

2.5 Cr.

60

1200

1680

1925

54.6 lakhs (Rs 7550/sq.ft)

92.7 lakhs

55.6 Cr.

As per Overlay Zone (TZ) : Maximum FSI permissible – 4 So, total built up allowed –155000*4= 6,20,000 sq.mt

PLOT AREA VALUE

Total Compensation = 354 .

2 Cr

Total Carpet area = 66402 sq.mt Considering 15% of carpet area, total built-up area =76,362 sq.mt Considering G+7 floors, Ground coverage = 13090 sq.m. i.e. 35% So 37,402 sq.mt will be area of land allotted PHC Remaining land area: 155000 – 37402 = 117598 sq.mt = 11.76 Hectares FSI utilised – 0.5 Cost as per 13000/sq.mt = 86.32 Cr.

REDEVELOPMENT MODEL : AFFORDABLE HOUSING COMPONENT So, Built-up area available after redevelopment: 6,20,000 – 76,362 = 5,43,638 sq.mt Remaining land area: 155000 – 37402 = 117598 sq.mt = 11.76 Hectares FSI utilised till now – 0.5

Additional affordable units 40 sq.m.

Carpet area

750 Number of units

30,000 sq.m.

34,500 sq.m.

Total Carpet area

Total built up area considering 15% loading

Total Carpet area = 34,500 sq.mt Considering 35% of carpet, total super built-up area =41,400 sq.mt Considering G+7 floors, Ground coverage = 5914 sq.m. i.e. 35% So the total land allotted = 16897 sq.mt = 1.69 hectares

Remaining land area: 11.76 – 1.69 = 10.07 Hectares FSI utilised – 0.22 Total construction cost as per 13000/sq.mt – 39 Cr Total Built-up area used till now : Total built-up Available = 5,43,638 – 34,500 sq.mt = 5,09,138 sq.mt

REDEVELOPMENT MODEL : LAND DISTRIBUTION OF PHC - AHC

DEMOLITION-2

DEMOLITION-1

AHC PHC

FSI Distribution

N

FREE SALE : Land parcel area – 10.07 hectare Total Built-up area – 5,09,138 FSI remaining – 3.28 AHC : Land parcel area – 1.69 hectare Total no. units – 750 Total Built-up area – 34,500 sq.mt FSI utilised – 0.22 Ground Coverage – 5914 sq.mt ( 35% ) PHC : Land parcel area – 3.74 hectare Total no. units – 852 Total Built-up area – 76,362 sq.mt FSI utilised – 0.5 Ground Coverage – 13090 sq.mt ( 35% )

60 mt wide Chandkheda main road

40 mt wide IOC road

So, Built-up area available after redevelopment: 6,20,000 – 1,18,862 = 5,09,138 sq.mt Remaining land area: 155000 – 54299 = 117598 sq.mt = 10.07 Hectares FSI utilised till now – 0.72

Investment by private developer till now 125.32 Cr Construction cost (86.32+39)

13.57 Cr Site development cost (2500/ sq.m.)

10.22 Cr

7.45 Cr

Transit cost 5000 per house)

Contingency (5% of 117 Cr)

Total Compensation cost =354 . 2 Cr

Total Investment till now – 510.76 Cr

Land Parcel Distribution after PHC and AHC

15.5 ha

3. 74 Ha

1.69 Ha

10.07 Ha

PHC

AHC

Free Sale

R E D E V E L O P M E N T M O D E L : M A R K E T A N A LY S I S O F C H A N D K H E D A S. No.

2 3

TP-44

1

Pebble Bay 2

2

Sangath Ipl Pure

3

8

10

4

NEW CHANDKHEDA

7

6

1

Under Construction 3.06

Typology

Confuguratio n of Units No. of Units

Ticket Size (sqft)

Unit Price Shop Height (sq.ft) Shop Sizes (sq.ft) Price(sq.ft)

Mixed Use

3,4 bhk

150

0.36

Residential

2 bhk

203

687, 711,720

G+15

5900

Sharan Circle Homes Under Construction 0.76

Mixed Use

2, 3 BHK

327

1755, 2592

G+15

3000

2018

1935, 2009, 2063, 2170, 2515, 2720 G+15

3100

4

Sparsh Arcade

2017

0.4

Commercial

5

Omkar Lotus

2018

0.35

Mixed Use

3 BHK

80

1806, 2025

G+6

3200

Prarambh Bungalows Under Construction 0.54

Residential

4 BHK

20

3500

G+ 1

7200

2.6

Mixed Use

1,2 BHK

1000

550-860

G+10

6

NEW CG ROAD

9

Plot area Name of the project Year of Completion (hec)

7 Keshav Apartments (MMGY)

2017

52

G+6

535-3400

15000

Area Name Chandkheda Main Road Chandkheda Main Road

750-1000

12500

Chandkheda Main Road

362, 565, 750

15000

Chandkheda Main Road

550-600

10000

New CG Road and TP-44 New CG Road and TP-44 New CG Road and TP-44

5

Inferences from Chandkheda micro-market analysis 1970 Total number of units

1086 Total number of units sold

456 887 (59%) Commercial Residential

1514 (77%) Residential 1514

199 Commercial

Total number of units as per type

Sale percentage 55%

714 3 BHK

Average FSI 1.8

727 2 BHK

71 4 BHK

Ground Coverage 35 %

Predominant Typology: Mid-rise Apartments Predominant Type of units: Residential Average Built-up area of the units:2 BHK – 850 sq.ft., 3 BHK – 1800 sq.ft.

Shops/offices- 650 sq.ft.

Average sale price: Resi-2700 to 3500/ sq.ft., Commercial- 7000 to 15000/ sq.ft.

Common Amenities: Gym, Children play area, Garden, Club house

8

Elysium

Under Construction 0.6

Residential

4 BHK

57

3150

G+ 12

4500

9

Suyal Kutir

Under Construction 0.45

Mixed Use

2, 3 BHK

108

1200 - 1600

G+ 7

2750

8000

New Chandkheda

10

Saral Parivesh

Mixed Use

2, 3 BHK

110

1130, 1205, 1625

G+ 7

2500

9500

New Chandkheda

2017

0.55

New CG Road and TP-44

Inferences from Chandkheda main roadmicro-market analysis 1181 Total number of units

745 Total number of units sold

326 590 (79%) Commercial Residential

855 (74%) Residential 855

155 Commercial

Sale percentage 63% Average FSI 4 444 340 71 1000 Huge Impact on the market- ONGC 3 BHK 2 BHK 4 BHK 1BHK Ground Coverage 35 % Predominant Typology: High-rise Apartments Predominant Type of units: Residential Average Built-up area of the units:2 BHK – 850 sq.ft., 3 BHK – 1800 sq.ft.

Shops/offices- 650 sq.ft.

Average sale price of the units: Resi-3000 to 3500/ sq.ft., Commercial10000 to 15000/ sq.ft.

Common Amenities: Gym, Children play area, Garden, Club house

Total number of units as per type

REDEVELOPMENT MODEL : FREE SALE PROJECT OPTIONS 11,500/ sq.m.

Jantri value of land

Free sale land area : 10.07 Hectares Built-up area available after PHC and AHC- 5,09,138 sq.mt

Option 1 Selling of Land parcel

35% Profit High end residential towers

Commercial

Selling of Land parcel – 4 hectares High-end Residential – 2, 3 and 4 BHK Commercial – Shops and offices Residential (1788 units) Land Area – 5 hectares FSI utilized : 1.67 Built-up used : 2,50,000 sq.mt 2 BHK : 875 ( carpet area -850 sq.ft) 3 BHK : 797 ( carpet area – 1465 sq.ft) 4 BHK : 116 ( carpet area – 1830 sq.f) Commercial (617 units) Land Area : 1.2 hectares FSI utilized : 0.48 Offices : 617 (carpet area – 1200 sq.ft) Total Investment – Rs 1079 Cr Total Revenue – Rs 1500 Cr

Option 2 Selling of Land parcel

25% Profit Mixed-use residential towers

Selling of Land parcel – 4 hectares High-end Residential – 2, and 4 BHK Commercial – Shops and offices

Residential Mixed use(3287 units) Land Area – 6.07 hectares FSI utilized : 2.25 Built-up used : 3,49,138 sq.mt 2 BHK : 1437 ( carpet area -850 sq.ft) 3 BHK : 1310 ( carpet area – 1465 sq.ft) 4 BHK : 190 ( carpet area – 1830 sq.f) Shops : 350 Total Investment – Rs 1200 Cr Total Revenue – Rs 1575 Cr

75,000/ sq.m.

Market value of land

Option 3 - 40% Profit High end residential towers

Commercial

High-end Residential – 2, 3 and 4 BHK Commercial – Shops and offices

Residential (3393 units) Land Area – 7 hectares FSI utilized : 2.8 Built-up used : 4,35,115 sq.mt 2 BHK : 1522 ( carpet area -850 sq.ft) 3 BHK : 1634 ( carpet area – 1465 sq.ft) 4 BHK : 237 ( carpet area – 1830 sq.f) Commercial (617 units) Land Area : 3.07 hectares FSI utilized : 0.48 Offices : 617 (carpet area – 1200 sq.ft) Total Investment – Rs 1900 Cr Total Revenue – Rs 2660 Cr

REDEVELOPMENT MODEL : FREE SALE COMPONENT 1. Selling of Land Parcel 4 ha Land area to be sold

1,85,000 sq.m.

Saleable built up area

75,000/ sq.m.

Selling price

370 Cr Total revenue gained

2. High end residential towers 1000 sq.ft.

2 BHK

875 No. of 2 BHK units

1725 sq.ft.

3 BHK

797 No. of 3 BHK units

2150 sq.ft.

4 BHK

116 No. of 4 BHK units

Free sale land area : 10.07 Hectares Built-up area available after PHC and AHC5,09,138 sq.mt Total Investment till now – 510.76 Cr As per market, value of remaining land parcel – 654 Cr

Option 1

Land : 5 Hectares Total Built- up used – 2,50,000 Ratio of 2 BHK/ 3 BHK/ 4 BHK– 35:55:10 Total carpet area – 2,12,500 sq.mt Total super-built up – 2,86,875 sq.mt ( 35% of carpet ) Ground coverage ( 35% of site area ) – 17,500 sq.mt Construction cost ( 18000/ sq.mt ) – 430 Cr Site Development 2500/sq.mt – 12.5 Cr Contingency Fee- 21.5 Cr 8% Cost of money- 34.4 Cr Total Investment - 464 Crt

Selling of Land parcel

High-end Resi. towers

Comm. complex

Selling price as per market : 3500/sq.ft 2 BHK price –30 lakhs 3 BHK price – 51.3 lakhs 4 BHK price – 60.3 Lakhs Total gain : = 262.5+ 384.9 + 69.6 = 717 Cr Profit margin : 717 – 502 = 215 Cr

3. Commercial (Site area: 1.2 ha) 617 No. of units

1200 sq. ft.

Shops/offices built up

Total Super built – up= 88827.6 sq.mt Ground coverage ( 35% of site area ) – 4200 sq.mt Construction Cost ( 18000/sq.mt ) – 159.9 Cr Commercial Site Development 2500/sq.mt – 3 Cr 74,023 sq.m.

Contingency Fee- 8 Cr Built up used 8% cost of money – 13.5 Cr

12,000 sq.m.

Land

4. Amenities 15% of common plot Club house built up area

5000 sq.m.

CP 10% of site

750 sq.m.

Club house built up area

1.12 Cr Cost of club house (1500/ sq.ft.)

Total Investment – 182.5 Cr Selling price as per market : 10000/sq.ft Shop/office price – 60 lakhs Total gain = 258.7 Cr Profit margin : 258.7 – 169 = 89.7 Cr

As per assumptions: 1079 Cr Total investment of the project 1500 Cr Total gains

08

REDEVELOPMENT MODEL •

LAND DISTRIBUTION

•

PHASING AND TIMELINE

•

TIMELINE AND OUTFLOWS

•

INFLOWS AND MARKET STRATEGIES

•

GRAPHS AND FINAL CALCULATIONS

•

CONCLUSION

REDEVELOPMENT MODEL : LAND DISTRIBUTION PLAN 40 mt wide IOC road

FREE SALE LAND

RESI. PHASE 3

LAND PARCEL TO BE SOLD LAND AREA- 4 Hectares

AHC PHASE-1

N

60 mt wide Chandkheda main road

COMMERCIAL PHASE-2

RESI. PHASE 4

PHC PHASE-1

Commercial : Land parcel area – 1.2 hectare Total no. units – 617 Total Built-up area – 74,023 sq.mt FSI utilised – 0.47 Ground Coverage – 4200 sq.mt ( 35% ) RESIDENTIAL : Land parcel area – 5 hectare Total no. units – 1747 Total Built-up area – 2,50,000 sq.mt FSI utilised – 1.6 Ground Coverage – 17500 sq.mt ( 35% ) LAND PARCEL SELLING: Land parcel area sold – 4 hectare Built-up area provided – 1,85,000 sq.mt

AHC : Land parcel area – 1.69 hectare Total no. units – 750 Total Built-up area – 34,500 sq.mt FSI utilised – 0.22 Ground Coverage – 5914 sq.mt ( 35% ) PHC : Land parcel area – 3.74 hectare Total no. units – 852 Total Built-up area – 76,362 sq.mt FSI utilised – 0.5 Ground Coverage – 13090 sq.mt ( 35% )

REDEVELOPMENT MODEL ASSUMPTIONS FOR LAND BUYER Value of the land to be sold = 370 Cr Land Area: 4 Hectares Handover of the land – 1.5 years from the start date of the project Locking period – 3.5 years after the hold of land

IS BUYING A LAND GOOD OPTION? Other Investment Possibilities

Construction Project

Value to be invested = 370

Considering 12.5% profit in one year ( as per 50% profit in the project after 4 years )

Land Buyer Value of the investment becomes = 416.25 Cr Benefits Land on TOZ zone with a major frontage at the main road Land will be sold on the present value with no interest Land buyer will get more built-up area then the FSI 25000 sq.mt Built-up worth- 15 crores

Conditions Land buyer can further sell that land with the same conditions itself Part payments will have to be done by the buyer as per fixed durations

Project type should not be similar to the present developing project Land buyer will not develop any project till 5 years

Fixed Deposit

Stocks/ Mutual Funds

Considering 6.7% interest rate

Assuming 12-13% interest rates

(As per SBI bank 1 year interest rates)

( Depends upon the market risk)

Value of the investment becomes = 394.79 Cr

Value of the investment becomes = 418.1 Cr

Buying of land Market Value of the land = 370 Cr Land Area: 4 Hectares Current market price : Rs 75000/sq.mt Market price in 2011-12 : Rs 27000/sq.mt

Considering 22% escalation in the land prices ( As per ICICIhfc report 2011-12 ) Value of the land after 1 year = 475.5 Cr Major aspects in the price rise: • Frontage of 150 meters on the BRTS corridor • TOZ zone – FSI : 4 • Transport Connectivity • Connectivity with Gandhinagar and New CG road

REDEVELOPMENT MODEL : CONCEPTUAL MASTER PLAN (GDCR) 40 mt wide IOC road 12 mt. Entry/ exit for Phase-4 COMMERCIAL PHASE-2 RESIDENTIAL PHASE-4 PHASE-3

LAND PARCEL TO BE SOLD

60 mt wide Chandkheda main road

Building height – 48 mt 9 mt margin is considered between 2 buildings as per GDCR

Amenities Club House Swimming pool Gym Library Home theatre

9 mt margin is considered between 2 buildings as per GDCR 9 mt width road is considered as per GDCR 12 mt. Entry/ exit for Phase-3 Building height – 48 mt

Amenities Garden Play Area Cafeteria

9 mt margin is considered between 2 buildings as per GDCR 9 mt width road is considered as per GDCR 6 mt margin is considered between 2 buildings as per GDCR

12 mt. Entry/ exit for AHC

AHC

Building height – 24 mt PHC

PHASE-1

12 mt. Entry/ exit for PHC Building height – 24 mt N

Amenities Garden Play Area Amenities Garden Play Area Community Hall Reading room

REDEVELOPMENT MODEL : MASTER PLAN 40 mt wide IOC road

PROJECT PHASING Total Project cost = 510.76 Cr Project duration = 4 years

PHASE- 1

RESIDENTIAL PHASE-4 PHASE-3

LAND PARCEL TO BE SOLD

AHC

PHC

PHC : 1 car parking per unit AHC : 1 car parking per unit

60 mt wide Chandkheda main road

COMMERCIAL PHASE-2

PARKING REQUIREMENTS

PHASE- 2

FREE SALE: 2 – BHK : 1 car parking per unit

Total Project cost = 200 Cr Project duration = 3 years

PHASE- 3

3 – BHK : 2 car parking per unit 4 – BHK : 2 car parking per unit

Total Project cost = 298.5 Cr Project duration = 3 years

PHASE- 4

Phase

Component Type

No. of units No. of towersFloors 128 5 G+7 96 308 8 G+7 82 178 4 G+7 60 2 G+7

Commercial : 2 car parking per unit

Ground coverage

Total built up area

Land area

FSI used

3.74 Hec

0.5

35%

76,362 sq.mt

Phase- 1

PHC

LIG LIG LIG LIG MIG HIG

Phase- 1

AHC

LIG

750

14

G+15

1.69 Hec

0.22

35%

34,500 sq.mt

Phase- 2

Free sale

Commercial

617

1

G+15

1.2 Hec

0.47

35%

74,023 sq.mt

Phase- 3

3 BHK 4 BHK

Residential

540 116

7

G+15

2 Hec

PHASE-1 Phase- 4

N

Total Project cost = 184.4 Cr Project duration = 2 . 5 years

2 BHK 3 BHK

Residential

875 257

1,00,000 Sq.mt 1.6

10

G+15

3 Hec

35%

1,50,000 sq.mt

REDEVELOPMENT MODEL : PHASING AND TIMELINE

REDEVELOPMENT MODEL: ASSUMPTIONS FOR ACTIVITY SCHEDULING ASSUMING PUBLIC HOUSING COMPONENT : Construction rate - 13000/ sq.mt of carpet area

Tender Process

Negotiations

Clearance

Architectural Service

Transit Cost ( 5000 Rs/month)

Foundation (Rs 3210 Rs/sq.mt)

RCC (Rs 3210 Rs/sq.mt)

Masonry (Rs 850 Rs/sq.mt)

External Finish (Rs 750 Rs/sq.mt)

Services (Rs 1500 Rs/sq.mt)

Loading (Rs 1300 Rs/sq.mt)

BU certificate

Demolition

Internal Finish (Rs 2200 Rs/sq.mt)

Site Development (Rs 2500 Rs/sq.mt) Source : SUN SKYPARK SITE DETAILS

REDEVELOPMENT MODEL : TIMELINE AND OUTFLOWS

354.6Cr 10.76 Cr 7.45 Cr 139 Cr

TOTAL OUTFLOW- Rs 1246.17 Cr.

REDEVELOPMENT MODEL: ASSUMPTIONS FOR INFLOWS PHC and AHC Total Project cost = 156.56 Cr Total Compensation cost = 354 . 2 Cr

PHASE- 1

Investment Strategy

So, Total Investment = 510.76 Cr Project duration of Phase-1 = 4 years Considering part payments from land buyer, total amount generated by developer = 520 Cr

FREE SALE COMPONENT

PHASE- 2

Value of the land to be sold = 370 Cr Developer’s capital = 150 Cr

Investment Strategy

Total Project cost = 184.4 Cr Project duration = 2.5 years Capital present with builder to start Phase-2 after considering Phase-1 = 10 Cr

PHASE- 3

Total Project cost = 200 Cr Project duration = 3 years

+ Certain percentage of Inflow generated from the selling of units will be used as out flows for the completion of other phases

PHASE- 4

Total Project cost = 298.5 Cr Project duration = 4 Years

Benefit : No land cost is to be barred

REDEVELOPMENT MODEL: ASSUMPTIONS FOR INFLOWS Unit Price range

As per market analysis

590 (79%)

745

Selling price for residential= 3500 Rs/ sq.ft As per market analysis, it is : 3000-3500 Rs/sq.mt 2 – BHK price – 30 lakhs ( 850 sq. ft carpet area ) 3 – BHK price – 50.7 lakhs ( 1450 sq.ft carpet area ) 4 – BHK price – 60 lakhs ( 1800 sq.ft carpet area )

Residential

Total number of units sold

155 Commercial

Considering 31% Average Sale yearly

Selling price for commercial = 10,000 Rs/sq.ft As per market analysis, it is : 10,000-15000 Rs/sq.mt

FREE SALE COMPONENT PHASE- 2

Launch offer 10% discount 75 units sold

Year 3

25 %

22 %

Year 4

135 units

150 units

18 %

Year 5

115 units

13 %

Year 6

80 units

PHASE- 3

PHASE- 4

7%

62 units

Total units - 617

12 %

Launch offer 10% discount 125 units sold

10 %

Year 7

23 %

Year 4

285 units

Year 8 Year 9 Year 6 Year 7 Year 5 20 % 13 % 13 % 12 % 16 %

330 units

235 units

363 units

10 % escalation is considered in the selling rates of units for every year

246 units

204 units

Total units - 1788

REDEVELOPMENT MODEL : TIMELINE AND INFLOWS

TOTAL INFLOW- Rs 1601.77 Cr.

R E D E V E L O P M E N T M O D E L : M A R K E T I N G S T R AT E G I E S Amenities

Free Parking

1st Residential Project in Chandkheda with luxurious amenities

2 Car parking per unit for residential and commercial Special target group

Club House

Swimming pool

Gym

Garden

Outdoor sports

Library

Home Theatre

As per the market analysis, ONGC employees have a major impact on this area

ONGC Employees 5 % discount

Other major company employees

Employees from Torrent, railways and IT sector of Gandhinagar can be attracted for experiencing a project of its own kind

Chandkheda – An upcoming IT hub and Commercial area

Offers for IT companies in Commercial

Attraction for people from surrounding area

BRTS and Metro at your foot steps

Brochures, Walkthrough, Radio and newspaper Advertisements and Publicity

Media

Cafeteria

Selling Price Considering the Benefit - No land cost is to be barred Selling price for residential= 3500 Rs/ sq.ft As per market analysis, it is : 3000-3500 Rs/sq.ft Selling price for commercial = 10,000 Rs/sq.ft As per market analysis, it is : 10,000-15000 Rs/sq.ft

Discounted Rates Special offer on the selling rates on the launch day Launch offer 10% discount

Residential

Launch offer 10% discount

Commercial

REDEVELOPMENT MODEL : NET CASHFLOW GRAPH Compensation

Inflow (Land Buyer)

Compensation

250

200

150

100

50

0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

-50

-100 Year 0

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

-150

Total Outflow ( in crores )

-200

Cash Flow Total Outflow ( in crores ) Total Inflow ( in crores ) Total net cash flow

Y0 115.03 0 -115.03

Total Inflow ( in crores )

Y1 17.73 0 -17.73

Y2

Y3

Total net cash flow

Y4

182.56 173.84 297.64 178.86 209.37 338.49 -3.7 35.53 40.85

Y5 50.42 295.37 244.95

Y6 158.39 206.96 48.57

Y7

Y8

79.21 101.732 130.8 135.36 51.59 33.628

Y9 69.62 106.56 36.94

R E D E V E L O P M E N T M O D E L : C U M I L AT I V E C A S H F L O W G R A P H 1800

1600 1400 1200 1000 800 600 400 200 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

-200 Year 0

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

-400 Cumilative Outflow ( in crores )

Cash Flow Cumilative Outflow ( in crores ) Cumilative Inflow ( in crores ) Cumilative Cash flow

Y0

Cumilative Inflow ( in crores )

Y1

Y2

Y3

Y4

Cumilative Cash flow

Y5

Y6

Y7

Y8

Y9

115.03 132.76 315.32 489.16 786.8 837.22 995.61 1074.82 1176.552 1246.17 0 0 178.86 388.23 726.72 1022.09 1229.05 1359.85 1495.21 1601.77 -115.03 -132.76 -136.46 -100.9 -60.08 184.87 233.44 285.03 318.658 355.598

REDEVELOPMENT MODEL : CASHFLOWS Cash Flow

Y0

Total Outflow ( in crores ) Total Inflow ( in crores ) Total net cash flow 400 350 300 250 200 150 100 50 0 -50 -100 -150

Y1

115.03 0 -115.03

Y2

17.73 0 -17.73

Y3

Y4

Y5

182.56 173.84 297.64 178.86 209.37 338.49 -3.7 35.53 40.85

Y6

50.42 295.37 244.95

158.39 206.96 48.57

Y7

Y8

Y9

79.21 101.732 130.8 135.36 51.59 33.628

69.62 106.56 36.94

NPV Rs 143.39

IRR 28% Y0

Y1

Y2

Y3

Y4

Total Outflow ( in crores )

Cash Flow

Y0

Cumilative Outflow ( in crores ) Cumilative Inflow ( in crores ) Cumilative Cash flow

Y5

Y6

Y7

Total Inflow ( in crores )

Y1

Y2

Y3

Y8

Y9

Fixed Deposit

Total net cash flow

Y4

Y5

Y6

Y7

Y8

Y9

115.03 132.76 315.32 489.16 786.8 837.22 995.61 1074.82 1176.552 1246.17 0 0 178.86 388.23 726.72 1022.09 1229.05 1359.85 1495.21 1601.77 -115.03 -132.76 -136.46 -100.9 -60.08 184.87 233.44 285.03 318.658 355.598

Considering 6.7% interest rate (As per SBI bank 1 year interest rates)

1800 1600

Investment- 150 Cr, after 9 years

1400 1200 1000 800

122 Cr

600 400 200 0 -200

Y0

Y1

Y2

Y3

Y4

Y5

Y6

Y7

Y8

-400

Cumilative Outflow ( in crores )

Cumilative Inflow ( in crores )

Cumilative Cash flow

Y9

REDEVELOPMENT MODEL : CONCLUSIONS UNDERSTANDING THE POLICY Ambiguity in Carpet area calculation

Problems in issuance of BUC of projects using TDR

Handover of Freesale land procedure

Confusion in the selling authority of commercial shops

FSI and height restrictions are not Context specific

CHALLENGES FACED DURING THE PROJECT DEVELOPMENT Working on the society which was already 40-50 years old

Shifting people from an independent house to an apartment is a biggest challenge

Poor surveillance

by GHB in terms of legalities of the houses

Dealing with 3 different components

Distribution of land parcel and FSI

WILL A DEVELOPER PREFER THIS MODEL ?

Capital – Rs 150 Cr Period of Investment – 9 Years Returns – Rs 355 Cr Profit – 136% For GHB, Returns- 90 crores

Advantages : Developer’s point of view •

No money is borrowed from market or banks

•

Money can be borrowed to use in other projects simultaneously

•

This project would add a good value to the overall turnover of the project because of high monetary value

THANKYOU

DARPAN .R. TARWANI I PP0010517 HOUSING STUDIO I SEM 3