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AMC bets on huge returns from riverfront property sale

Aims to raise Rs 1,200 cr by selling, leasing space to developers for commercial properties

Vinay Umarji  |  Ahmedabad 

Thanks to a separate General Development Regulation (GDR) opening up commercial construction of Sabarmati Riverfront, the Ahmedabad Municipal Corporation (AMC) plans to make the most of it.

With the Ahmedabad Urban Development Authority (AUDA) laying out the new development plan for the city that envisages general development regulations (GDR) of Sabarmati Riverfront project, the AMC plans to raise the Rs 1,200 crore project cost by way of selling or leasing of commercial properties.

As per the new GDR, about 10 sq km area surrounding the Sabarmati riverfront will have the highest possible FSI (floor space index) of 5.4, allowing nearly 22-storey buildings. Moreover, the new plan envisages development of commercial properties on the riverfront, which is being run by the Sabarmati Riverfront Development Corporation Limited (SRFDCL).

“We have invested around Rs 1,200 crore so far in development of the riverfront project. The new GDR has opened up development of commercial properties on the riverfront. We are, hence, looking to raise back the Rs 1,200 project cost over the next few years by selling or leasing out space to developers for commercial properties,” said a top AMC official.

The municipal corporation is already in talks with few interested developers for a pilot sale. “We need to gauge how successful such a sale or lease can be. Hence, we are in talks with few developers and are negotiating for a sale or lease of a small part of land on the riverfront. We hope to garner around Rs 10 crore from the pilot sale. When successful, we can move on to larger amounts of sale,” the AMC official stated while refusing to divulge details of developers that the corporation is in talks with.

Meanwhile, the riverfront development project encompasses both banks of the Sabarmati for a 10.5 kms. stretch, creating approximately 185 hectares of reclaimed land.

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First Published: Thu, March 20 2014. 20:59 IST