DLF arm to buy Gurugram land for Rs1,496 crore

Bengaluru: A subsidiary of DLF Home Developers Ltd, which is a unit of India’s largest real estate firm DLF Ltd, placed a winning bid of Rs1,496 crore for an 11.76-acre land parcel in Udyog Vihar, Gurugram, in an auction conducted by Haryana State Industrial and Infrastructure Development Corp. Ltd (HSIIDC).

The reserve price of the site was set at Rs686 crore. Four companies participated in the bidding. This was the highest bid ever for any site in Haryana, said Raja Sekhar Vundru, managing director of HSIIDC.

The success of the auction assumes significance in light of the general perception of a sluggish real estate market and vindicated the tag of Gurugram being the most preferred investment destination in India, Vundru said in a statement.

The land is earmarked for a mixed-use development project and is eligible for higher floor area ratio as per the transit-oriented development policy, upon payment of necessary charges.

The total saleable area, including additional area based on transit-oriented development (TOD) policy, is around 2 million sq. ft.

“The development of this land parcel is envisaged in the near future and shall be positioned as a Grade A commercial complex in a similar genre as Horizon Centre, DLF V in Gurugram,” DLF said.

Though the project is going to be developed by DLF Home Developers, it will eventually be transferred to DLF’s rental arm DLF Cyber City Developers Ltd and its joint venture partner GIC Pte Ltd.

The land is strategically located next to the operational buildings of CyberCity and the under-construction Cyber Park.

In December, DLF said its promoters had concluded the sale of a 33.34% stake in its rental arm to GIC for around Rs8,900 crore.

“This land acquisition effectively further strengthens and expands their current commercial office asset portfolio,” said a person familiar with the transaction, who requested anonymity.

Big ticket land acquisitions have been few and far between with most developers either developing land they already have or entering into joint development agreements with landowners or other developers.

Realty firm Brigade Enterprises Ltd bought a 12.95-acre land parcel in north Bengaluru’s Yeshwantpur area for Rs218 crore from SAB Miller India Pvt. Ltd in January 2018.

In November, Lodha Developers Pvt. Ltd bought 5 acres of land in Mumbai’s Jogeshwari suburb from Patel Engineering Ltd for Rs376 crore.livemint