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Mumbai: Shapoorji Pallonji Real Estate and Ariisto in talks for Goregaon project

MUMBAI: Shapoorji Pallonji Real Estate is in advanced talks with Ariisto Developers to enter into a joint development agreement to develop a residential project of around one million square feet in Mumbai’s suburb of Goregaon, said two persons with direct knowledge of the development.

Ariisto Developers has already developed the rehabilitation component of the slum project and has now started work on the free-sale component of the project through this alliance with Shapoorji Pallonji Real Estate.


“Shapoorji Pallonji Real Estate is likely to pay around Rs 250 crore upfront to Ariisto as per terms of this alliance,” said one of the persons, who did not wish to be identified.

Shapoorji Pallonji Real Estate’s spokesperson declined to comment on the development, as did Atithi Patel, director, Ariisto Developers.

Earlier, the Mumbai bench of the National Company Law Tribunal (NCLT) had admitted and initiated insolvency proceedings against a special purpose vehicle of Ariisto Developers.

Policy changes, including demonetisation, implementation of the Real Estate (Regulation & Development) Act, 2016 and the goods and services tax (GST) regime have resulted in consolidation in the real estate sector. Several real estate developers across markets are looking for stronger players to associate with through joint developments or joint ventures, or for exiting a few projects completely.

Ariisto Developers, formerly known as Atithi Builders, has more than 15 projects under construction across Mumbai measuring around 32 million sq ft. The company was one of the first developers to undertake and execute transfer of development rights (TDR)-generating projects under regulation 33(10) of the Development Control Regulations for Greater Mumbai that relates to slum rehabilitation.

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