Lalbaug’s Ganesh Gully to get upwardly mobile
Builder buys 17 buildings from the area for Rs 55 crore, plans to construct flats ranging from Rs 3-5 crore - by Alka Shukla
The Ganesh Gully area of Lalbaug that is famous for the Lalbaugcha Raja Ganeshutsav is on the verge of a complete overhaul. Seventeen age-old buildings from the area, adjoining the busy Dr Babasaheb Ambedkar Road have been bought by Orbit Corp for Rs 55 crore.
The company is in the process of acquiring ownership rights of at least seven other buildings in the area. Each of these buildings is spread over a 450-500 sq metre plot – the total area is over a hectare. The total cost of acquisition will be to the tune of Rs 100 crore.
Confirming about the deal, Pujit Aggarwal, managing director of Orbit Corp said, “These tenants have been living here for decades. Each plot has a different landlord. We are looking at a minimum of 24 and maximum of 30 plots. Currently, we have acquired ownership of 17 buildings from the individual landlords. We hope to finish the acquisition process of the other buildings in the next six months.”
Aggarwal added that they are also holding discussions with individual tenants for redevelopment of the property and are hopeful of being able to break ground within a year. Each of these buildings has 50-odd tenants with houses between 700-900 sq feet. The company claims redevelopment will open up almost one million sq ft of space after rehabilitating the existing tenants. This will pave way for luxury housing in the area.
“Our product will be luxury for that location. Considering that most properties in Lower Parel and Worli are above Rs 5 crore, we are targeting the Rs 3-5 crore segment in Lalbaug,” Aggarwal added.
With a blue-print being readied, the company plans to deliver flats in four years. The total investment in the project will be to the tune of Rs 350 crore. A majority of these old buildings in Lalbaug area are ground plus one to four floors. With the real estate boom and rates in the area shooting up to Rs 20,000 per sq feet, several builders are vying for every inch of space in Lalbaug.