Prestige Estates Projects signed a major redevelopment agreement in Mumbai’s Worli locality. The company will redevelop the Shivshahi housing society through its subsidiary Prestige Falcon Mumbai Realty. According to documents accessed through CRE Matrix, the company paid nearly ₹29.12 crore as stamp duty. The project carries an estimated revenue potential of nearly ₹6,000 crore. The development will cover more than 1 million sq ft. The project also highlights growing redevelopment opportunities in Mumbai’s property market.
Deal Details
The redevelopment project involves 192 tenements spread across 3.3 acres in Worli. The society is located opposite the GlaxoSmithKline Pharmaceuticals property on Dr Annie Besant Road. The project remained stalled for more than a decade due to disputes and execution issues. Earlier developers could not complete the redevelopment process. Prestige Estates will now lead the redevelopment through a fresh agreement.
Prestige Estates also repaid a ₹ 170-crore loan taken by the earlier developer. The company will further invest more than ₹578 crore in construction costs and compensation payments. The investment will also cover premium payments for fungible floor space index benefits. The agreement strengthens Prestige Estates’ expansion in Mumbai’s luxury housing market.
Development Plans and Revenue Potential
Venkat K Narayan said the project carries a development potential of 1 million sq ft carpet area. After rehabilitation commitments, the project will offer nearly 7.5 lakh sq ft free-sale area. Prestige Estates plans to develop a premium residential project on the site. The company expects the project to generate around ₹6,000 crore in revenue. Current property prices in the Worli area support this revenue estimate.
Prestige Estates plans to launch the project by September after approvals. The company expects to complete the development within four years from commencement. The project currently remains under the planning and approval stage. The development will target Mumbai’s premium residential segment. Worli continues attracting luxury housing projects due to its central location.
Earlier Developer and Loan Settlement
Before this agreement, the society had partnered with Wondervalue Realty Developers for redevelopment. The earlier developer raised loans from a consortium of banks against the project. The lending group included State Bank of India, Union Bank of India, Central Bank of India, and Indian Bank. Some lenders later initiated recovery proceedings in the Debt Recovery Tribunal. The consortium later approved a one-time settlement with the new developer.
Prestige Estates cleared the earlier debt obligations as part of the agreement. The settlement also helped withdraw recovery proceedings linked to the project. This resolution allowed the redevelopment process to move forward again. The agreement helped revive a long-delayed housing society redevelopment project. Large developers continue entering stalled redevelopment projects across Mumbai.
Land History and Redevelopment Scope
The land parcel includes buildings constructed during the 1950s. Municipal Corporation of Greater Mumbai leased the land to Maharashtra Housing and Area Development Authority for 999 years. Authorities originally planned the site for housing economically weaker industrial workers. The project site also includes society offices and adjoining hutments. Earlier developers had already demolished seven out of eight huts on the land parcel.
Redevelopment projects continue driving Mumbai’s real estate market due to limited vacant land availability. Around 19,000 properties across Mumbai currently await redevelopment. Established developers continue targeting these projects for future growth opportunities. Redevelopment projects also help improve old housing infrastructure across the city. Large housing society projects remain a key segment in Mumbai’s residential market.
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Media Mention
- Hindustan Times: Prestige Group inks DA to redevelop Worli project
- The Economic Times: Prestige Estates inks pact for 1 million sq ft redevelopment project in Mumbai’s Worli
