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Feasibility Report on Redevelopment of Society
Redevelopment PMC
Architects, Consulting Structural Engineers, Project Management Consultants, Repairs
and Rehabilitation Consultants and Registered Valuers.
Date: ----------The Hon. Secretary/Chairman,
Model Co.-Op. Housing Society Ltd.
SUB:-
Our Report on Redevelopment of your Society Building by Utilising the
plot Potential and Additional Area in lieu of TDR.
Dear Sir,
We on the onset express our sincere THANKS to all the committee members of your
society building. For giving us an opportunity for providing Project Management
Consultancy Services for your Society Redevelopment Works.
We have studied the various documents given to us by the committee members and have
worked out the feasibility of the said redevelopment project under reference.
We are enclosing herewith our Feasibility Report for the proposed redevelopment of your
society Buildings.
Kindly go through the same please feel free to call us for any clarification required from
your end.
Thanking you
Yours faithfully
(A. B. C.)
FEASIBILITY REPORT FOR REDEVELOPMENT OF BUILDING KNOWN AS
“MODEL APARTMENTS”
Under instructions from committee members of Model Co-op Housing Society, we have
studied the redevelopment proposal in respect of the property bearing C.T.S No. 111 of
village Eskar, S. V. Road, Borivali (West), Mumbai 400 092.
The property is currently owned by Model Co-op Housing Society and we have inspected
the property for the purpose of this report.
This property is designated in the development plan for residential user and is abutting
18.30 mt wide S.V. Road. Thus residential as well as shops with certain Non
residential activity such as Bank, Nursing Home, etc. could be proposed on the plot
under reference.
This property is situated on S. V Road and is in close proximity to Jain Temple, Ram
Mandir, Bhagvati Hospital, etc. It is abutting a reservation of public Hall on the East
which is known as Probhodahn Thakre Hall”. It is at 10/15 Minutes Walking distance
from Borivali Railway Station. Further it is connected to East by Fly Over Bridge.
Thus the plot under reference is well connected to different areas from all sides and is
situated in an ideally placed residential area and shopping area.
Further the property under reference is well connected to Municipal Sewer line and
Municipal Water supply line through the S. V. Road. Being a large plot of land (more
than 2500.00 Sq. mt. The development Control Regulations require certain percentage of
the land to be laid out as Recreation ground and therefore 15% of the plot area is required
to be excluded for arriving at the Net plot area for the computation of FSI. However,
physically 20% of the plot will have to be left Open, unbuilt upon and provided as
recreational / amenity open spaces.
This 20% of the plot area, which would be laid out as the amenity/recreation ground area,
Amenity/recreation area, the same could also be put to beneficial use in as much as
swimming Pool, club house and such amenity user areas could be put up to a certain
percentage of the plot Area and that built up area would be also free of FSI and it would
go a long way to boost up the selling price of such a development with this amenity.
DATA SUPPLIED BY THE SOCIETY :The following documents were supplied by the Society at the time of our appointment :
1.
Xerox Copy of Property Registered Card (P.R.C.) of plot bearing C.T.S. No 111/A,
111/B 111/1 to 111/34 of village Eskar, Borivali,
2.
Xerox Copy of C.T.S. Plan,
3.
Copy of Title Certificate from Advocate F.L. Gupta.
4.
Xerox Copy of Conveyance registered under No BOM/R/608/1966 and copy
of Index II,
5.
Xerox Copy of registration certificate of society,
6.
Xerox Copy of D.P. Remarks,
7.
Copy of E.E.T.&C. Survey remarks,
8.
Copy of Existing building plans (Building I & II)
9.
Copy of building Completion Certificate Under No GB/877/II and GB/878/II
10. Copy of layout approved letter Under No TPLO/1535 dated 6/10/1964
11. Copy of S.W.D. remarks and completion Certificate
12. Copy of R.L. demarcation and Road Completion Certificate.
13. Copy of Structural Report.
The said buildings would require further major structural repairs after five years because
of Corrosion in the reinforcement and other distresses which occurs due to leakage/
seepage related problem in the building. Lack of proper preventive maintenance would
further aggravate the situation and would accelerate the distress in the structural elements
(i.e Column, Beam & Slabs) which would lead to partial or total collapse of that
particular portion of the building.
The entire report is bifurcated into following sub heads namely :1.
Technical Report
2.
Financial feasibility of the Redevelopment proposal
3.
Benefits of Redevelopment proposal
4.
Drawbacks of Redevelopment proposal
At the end of the report we have given the sequence of operation that shall be followed in
implementing this Redevelopment Project.
The copy of various documents furnished by the society such as Property Registered
Card, C.T.S Plan, Copy of conveyance and index II, D.P. remarks, E.E. T. & C. remarks,
Copy of Title Certificate from Advocate N. G. Gupta, Copy of completion certificate
Under No GB/877/II, GB/878/II and copy of approved layout letter under No. TPLO/
1535 dated 6-10-1964; are also submitted at the end of the report for your ready reference
and perusal.
Thanking you,
Yours truly,
(A. B. C.)
TECHNICAL REPORT
A.
AREA OF THE PLOT :-
As per the copy of property card submitted by the society the area of the various
CTS Nos. is as under :SR
No.
1.
C.T.S. No
111/A
AREA IN SQ.MT.
SR
No.
C.T.S. No
18.
111/17
19
111/18
2.
111/1
20
111/19
3.
111/2
21
111/20
4.
111/3
22
111/21
5.
111/4
23
111/22
6.
111/5
24
111/23
7.
111/6
25
111/24
8.
111/7
26
111/25
9.
111/8
27
111/26
10.
111/9
28
111/27
11.
111/10
29
111/28
12.
111/11
30
111/29
13.
111/12
31
111/30
14.
111/13
32
111/31
15.
111/14
33
111/32
16.
111/15
34
111/33
17.
111/16
35
111/34
AREA IN SQ.MT.
TOTAL AREA = _______ Sq.mt.
However it is observed that there might be an increase in the area of the plot and the
detail scrutiny of the various documents shall be done at the time of actual planning
stage and detail measurement of the entire plot shall be done at the time of
approving the plans in order to accurately establish the exact area of the plot.
Further on finding that the plot area has increased than plot area correction
procedures should be done through building proposal and city survey department
Further as per the copy of conveyance document the area of pot under reference is
______ Sq.Yds. i.e ________ Sq.mt.
Hence for working out the feasibility of the T.D.R. proposal we have considered the
area of the Plot as per Property Registered Card i.e. ______ Sq.mt.
The necessary verification from the city survey office will be done at the time of
actual development.
B.
ZONE
As per the D.P. Remarks submitted by the society the plot under reference is in
residential zone and is abutting 18.30 mt. wide Existing Devidas lane. Hence
Residential as well as shopping and other Non Residential user will be permitted on
the said plot.
C.
Feasibility of Residential as well as Commercial user :The entire plot consists of 4 buildings of maximum G + 4 Upper floors, in the centre
there is a well developed Recreational Garden to facilitate the recreational activities.
These space could be utilized for constructing new building and thus could facilitate
partial development in the society.
However the above method of developing a new building and thereafter
demolishing the old Building will be implemented after carefully studying the
stability of the adjoining/surrounding Building during the construction of the new
building and will be subject to the approval from since it abuts 18.30 metre wide
existing road shopping on the front side with Non Residential User on the 1st Floor
such as Bank, Nursing Home, etc. could proposed on the front side.
Since the remaining portion will be comprising of stilt portion adequate parking will
be available for the existing as well as new members.
D.
F.S.I. And T.D.R. Permissible
As per the prevailing D.C. Regulation 1991 the F.S.I. permissible in the said area is
1.0. Now as per the recent policy guide lines of Mumbai Municipal Corporation
additional Transferable Development Rights (T.D.R.) of area equivalent to net plot
area is permitted on the plots in western suburbs. Since plot area is more than
2500.00 Sq.mt. 15% area of the Plot area will be deducted towards R.G. Thus an
additional development rights of _______ sq.mt is permissible on the plot under
reference in addition to the 85% of plot area. Therefore the total Built up area
permissible on the plot under reference will be ___________ Sq.mt + _______
Sq.mt. = _________ Sq.mt.
FINANCIAL FEASIBILITY REPORT OF THE REDEVELOPMENT BUILDING
KNOWN AS “MODEL CO.OP HOUSING SOCIETY LTD.”
Having inspected the site and upon going through the various document submitted by the
client such as PR Card, CTS Plan, D.P. Remarks, approved layout plan, existing building
plan, Site elevation Certificate, etc. we have to state as under :1) Total area of the plot is ______Sqm. = ( + ) ________Sqft.
2)
Less Deduction in F.S.I (15%) towards
Recreation Ground i.e. 15% of ________
= (-) _________Sqft
3)
Net Area of the Plot
= (+) _________Sqft
4)
TDR permissible on plot is 5204.20 Sqm.
= (+) _________Sqft
5)
TOTAL BUILT UP AREA PERMISSIBLE FOR CONSTRUCTION AFTER
PURCHASE OF T.D.R = (3) + (4)
= (+)_________SQFT
6)
Built up area for Shopping @ G. Floor
(_______(carpet) X 1.14 )
7) Approximately balance built up area including
Balcony (bal 10%)
= approximately _____ Sqft
= ( ______– _____ )
= App. _______Sqft
8) Non Residential Built up area on 1st floor
= App.____ X 1.1 X ___sqft
= ______ sqft
9)
10)
Built up area approximately required to rehab the
existing Members [Original B.U.A. as per calculation
= _______sqmt
Excluding staircase and counting excess bal in FSI)
= (-)______Sqft
Additional Built up area given by the developer
Free of cost to the members (Min ____ sqft Carpet area
Per member = ____X ____ X ____
= ( - ) _______Sqft.
11)
Built up area available for Residence = (7) – (8) - (9) – (10) = _________ sqft.
12)
Thus the built up area for sale under different category including balcony is as
under :-
13)
(i)
Shopping
(ii)
Non Residential
(iii)
Residential
_____ sqft.
Total Super built up area (Saleable area)
Saleable Area = 1.4 X Built Up Area/ 1.14
(i)
Shopping
____ sqft.
(ii)
(iii)
Non Residential
______ sqft.
Residential
______sqft.
Now considering the present cost of construction approximately at Rs. 700/- per
Sqft and considering the average cost of TDR of about Rs.______ per Sqft.
The total cost of project i.e. Cost of Construction, Cost of TDR, Cost of BMC &
Cost of temporary accommodation will be as under :(a) Cost of Construction
= Total built up area _____x ______ x ___
= _______ Sqft x1.2 x ____
= Rs________= i.e. Say Rs. _____ lacs.
(b) Cost towards TDR
= Area required for TDR x ___- = _____ Sq.ft. x ____
= Rs. _________= i.e. Say Rs. _____ lacs.
(c) Cost of B.M.C. Expenses including all fees, deposits, Premiums, Development
Charges, water charges, taxes, out off pocket expenses, Legal Charges, etc.
= Total built up area x ____ x ____
= _________Sq. ft x ___ x ___
= Rs __________/- = i.e. Say Rs ____ Lacs
(d) Cost incurred towards temporary accommodation (for 24 Months @ Rs. per
Sqft per month including brokerage, deposit, etc)
=______ Sqft x ___ x 24
=Rs ________/- = Rs ____ Lacs
(e) Total Cost of The Project
(a) + (b) + (c) + (d)
= Rs____lacs. + i.e Say Rs.____ lacs. + Rs____ Lacs + Rs ____Lacs
= Rs. _______ Lacs.
Considering the present market rate in that area total income generated by flats
is as under :- Assuming rate of Rs. /- per sqft.
(f) Total Income Generated
RATE FOR SHOPPING = Rs ______/- Per Sqft
RATE FOR SHOPPING = Rs ______/- Per Sqft
RATE FOR SHOPPING = Rs ______/- Per Sqft
(i)
Shopping
______ sqft. X ______ = Rs. _______
-
(iii) Residential ______sqft X_______ = /TOTAL INCOME = _____+ ____ + _______ =
Lacs
(g) GROSS PROFITS TO THE DEVELOPER : The gross profit = (f) – (e)
= Rs ______ Lacs – Rs ______ Lacs
= Rs _____Lacs
(h) NET PROFITS TO THE DEVELOPER : Assuming that a developer offers an amount of Rs 100 Lacs towards the
society’s corpus fund, the net profit after deducting the corpus fund will be
= Rs ____ Lacs –____Lacs
= Rs _____ Lacs
HENCE THE PROPOSAL BE FINANCIALLY FEASIBLE
Thanking you,
Yours truly,
(A. B. C.)
NOTE: 1)
The above calculations are made on few assumptions of the Cost of Construction,
Cost of TDR, Rate of Temporary accommodation and the rate of Residential area.
The same are likely vary or change depending upon the market condition.
2)
The above areas derived are based on the present policy of Mumbai Municipal
Corporation and are likely to change if any policy changes subsequently.
3)
Built Area = 1.14 X Carpet Area
4)
Saleable Area = 1.4 X Carpet Area = 1.4 X Built Up Area/ 1.14
BENEFITS OF REDEVELOPMENT
If the Redevelopment proposal is implemented then the following advantages could be
derived by the society :1.
The members will be provided new flats free of cost thus indirectly an earning of Rs
____/- (Rupees _______) per square feet
2.
The members will be provided or will be compensated for alternate accommodation
during the course of construction after demolition of the buildings.
3.
The newly constructed buildings will be Earthquake resistant as well will be
designed to take care the wind load. Hence more durable against the natural
calamity.
4.
New buildings will be planned to suit the modern living style.
5.
New buildings will be constructed with modern Elevation features to give beautiful
attractive and sober look. Which will indirectly amount to the price appreciation of
the whole property.
6.
New buildings will be constructed with beautiful entrances.
7.
Latest and modern amenities will be provided in the newly constructed building.
8.
New buildings will be constructed keeping in mind the latest IS quality standards
and hence will not require maintenance or major repairs for next 30 years or so.
9.
Lift facilities will be available to all flats.
10. Well designed and constructed access roads will be provided.
11. Land scaping development to suit the requirement of all age groups of people that is
children park for the kids, jogging tracks for middle aged persons and silent zones
for the older age people will be provided in the Plot thereby improving the living
standards of the members.
12. Club, sport room, swimming pool and other recreational facility could be provided.
13. In addition to above the entire expenses towards the much needed Major Structural,
Civil, Plumbing repairs which may be due after 5 years could be totally avoided
since the existing old buildings are completely demolished. Thus indirectly further
saving approximately Rs. ________/- (Rupees __________________) per square
feet of each member.
14. Further it may be noted that the said major Repairs if carried out would have been
lasted only for another 7/10 years and again the same would have been required to
be carried out after at least 7/10 years thereby further increasing the cost towards the
repairs. The same is totally eliminate once the buildings are going for
redevelopment.
15. Last but not least some Monetary benefits or additional area which may be
offered by the prospective Builder could also be of great benefit to the members.
GROSS FINANCIAL BENEFITS TO THE SOCIETY DUE TO
REDEVELOPMENT
SR.NO
DESCRIPTION
AMOUNT
01.
Savings due to eliminating the Cost of Major
Repairs @ Rs ____Per Sq.ft = x ______ = Rs
________
Rs
02.
Cost of construction of new building @ Rs
___Per Sqft of
construction area = ____
x ___ x ___ = Rs ___________
Rs
03.
Cost towards the B.M.C. outgoings for the
constructing new building @ Rs ____/- Per
Sq.ft. of construction area = _____ x ___ x ___
= ________/-
Rs
04.
Cost towards temporary accommodation at Rs
Rs
__/- Per
month per Sq.ft. for 24 months =
_______ x ____ x 24 = Rs ________
05.
Free Additional Carpet Area of Minimum
_____Sqft. Per Member x ____ = ______sqft.
Therefore saleable area = x = _____sqft.
Therefore interest increase in valuation of
property = _____ x ______ = Rs
Rs
06.
CORPUS FUND offered by Builder
Rs
TOTAL FINANCIAL GAIN TO THE
SOCIETY
Rs.
DRAWBACKS OF REDEVELOPMENT PROPOSAL
The following are the drawbacks of the said Redevelopment proposal :1.
SHIFTING AND TEMPORARY ACCOMMODATION
In order to facilitate the construction of the new buildings the members have to shift
temporarily for at least 18 to 24 months on rental basis after demolition of the
buildings.
This will indirectly lead to the following hardships:
(a) The members have to shift all their furniture / belonging etc to the newly rented
premises.
(b) There may be a possibility that the rented premises could be little far from the
school/colleges or their business places leading to further inconvenience.
(c) There may be a possibility that in few cases that the members may have to
search for another rental premises after the expiry of 11 months.
(d) There may be a possibility that the rented premises may be little away from the
railway station or bus station or away from main road; making the routine
travelling little inconvenient.
All the above will definitely disturb the normal life of the members to some extent
since members who have been staying in this building will require some time period
to get adapted to the new locality, new environment and new neighbours
2.
INCREASE IN MAINTENANCE CHARGES
The maintenance charges in the newly constructed building will increase due to the
following :(a) The newly constructed buildings will be assessed as per present ratable value
and hence there will be increase in property taxes to be paid to the corporation.
(b) The additional facility like lift, landscaping, club house, sports room, swimming
pool will lead to more consumption of electricity and water thereby will
increase the general Maintenance cost.
(c) The society has to depute additional permanent staff such as gardeners,
sweepers and security people to efficiently manage the day to day society
affairs.
3.
INCREASE IN NUMBER OF MEMBERS
Since the project is feasible only if T.D.R. is availed and additional flats which are
constructed are sold in open market there will be increase in the number of members
after both the buildings are constructed and this will further lead to increase in
number of vehicles which would require more parking space.
SEQUENCE OF OPERATIONS
In order to implement the Redevelopment project the following sequence of operations
has to be followed:
1.
Finalisation of the list of amenities.
2.
Preparation of draft tender documents, discussing with the committee and finalizing
draft tender.
3.
Inviting the tenders (Technical and Commercial) from various builders/developers,
doing the technical evaluation and preparing comparison statement and short listing
few developers.
4.
Conducting joint meetings with the short listed Builders/developers along with the
committee members and finalizing the most suitable developers.
5.
Issuing Letter of Intent based on terms negotiated with the selected Developer.
6.
Ascertaining measurement of each flat and finalizing the carpet area of each
member.
7.
Listing down the requirement of each member preparing tentative drawings.
8.
Carrying out detail plane table survey.
9.
Selecting upon Solicitors/legal consultants and Tax consultants.
10 Completing agreement formalities between the society and builders/developers and
also between the society members and builders/developers.
11. Finalsing the layout of the entire plot.
12. Layout approval from corporation.
13. Submission of Building files.
14. Obtaining of I.O.D. on tentative plans.
15. Obtaining C.C.
16. Finalising the plans as per the members requirement.
17. Obtaining approvals on finalized plan and C.C.
18. Shifting to a temporary accommodation.
19. Demolition of the building.
20. Carrying out soil exploration.
21. Construction of new buildings.
22. Construction of Infra Structure such as roads/Recreational Ground, etc,
23. Compound wall with gate and concrete pavement and watchman cabin
24. Obtaining O.C.C (Occupation Certificate).
25. Obtaining permanent water connection and water supply meter fixing.
26. Clening site and
27. Handing over possession to the members after confirming the carpet areas of newly
constructed flats.