MUMBAI: Mumbai-based Wadhwa Group has entered into an agreement with fellow real estate developer Thakur Group to jointly develop a two-acre land parcel in the suburb of Kandivali. The two companies are planning to develop a residential project on the plot, which has a development potential of 350,000 square feet.

As part of the proposed agreement, the Wadhwa Group will take care of development, approvals, construction, design and sale while the landowner Thakur Group will be responsible for getting the land title cleared.

The two companies are planning to offer apartments with configurations of two and three bedrooms with around 650 sq ft and ranging up to 1,130 sq ft. The project, TW Gardens, is estimated to fetch revenue of Rs 900 crore.

“We are looking to develop 3.5 lakh sq ft area and estimating revenue of around Rs 900 crore through this,” Wadhwa Group managing director Navin Makhija told ET. “The funding of the project will be from free cash flow that is generated from our other projects along with project finance that is on the verge of finalisation.’’

The government’s policy interventions, including the implementation of Real Estate (Regulation & Development) Act, 2016, the Goods & Services Tax India and demonetisation have resulted in consolidation in real estate sector. Several developers across markets are looking for partners to associate with through joint developments, joint ventures and even exiting a few projects completely.

Earlier, developers preferred to invest in the creation of a land bank and sought low-cost land parcels in upcoming areas for later development. With the evolving operational environment under the RERA and GST regimes, developers have been relooking at their business models.

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