Mumbai, Feb. 12 -- IPO-bound real estate development firm Kalpataru has signed on two large housing societies- one each in Chembur and Goregaon- for redevelopment projects with a total revenue potential of Rs 20 billion, according to sources. Kalpataru paid more than Rs 270 million for the two transactions, according to transaction documents.

As per documents accessed by real estate data analytics firm CRE Matrix, the Goregaon project, located in the residential Bangur Nagar neighbourhood, was signed in October 2024, while the larger five acre society on Chembur's VN Purav Marg was inked last month. Moneycontrol has reached out to Kalpataru to seek comment on the matter, and the story will be updated once the responses are received.

According to the transaction documents, the Chembur project, named Suman Cooperative Housing Society, comprises 136 residences across ten buildings, with the property valued at around Rs 247.62 crore. Kalpataru is expected to receive a free-sale component of around 4.2 lakh square feet, representing 350 units. The project is expected to be completed within a maximum of 42 months, including a six month grace period, the transaction documents showed.

As for the Goregaon project, sources said that Kalpataru's free sale component will be around 2 lakh square feet, across 200 units. The Goregaon project is also located near the Bangur Nagar metro station on the Yellow Line of the Mumbai Metro.

The new redevelopment projects are part of Kalpataru's plans to forge ahead with a redevelopment-led growth path in Mumbai, especially in the western suburbs. It has four redevelopment projects ongoing in areas such as Santacruz and Matunga, while it has other upcoming redevelopment projects in areas like Borivali, Juhu, and Andheri.

Kalpataru is another of the large, legacy developers in Mumbai who are increasingly looking at redevelopment projects for new business development, in order to proceed with an asset-light model, rather than pursuing scarce land parcel worth large sums. Other developers such as Godrej Properties, Ashwin Sheth Group, Raymond Realty, Rustomjee, Macrotech (Lodha), among many, are working on multiple redevelopment projects.

Published by HT Digital Content Services with permission from Construction World.