DLF bags 350.7 acre land project in Gurgaon
India’s largest real estate developer DLF has came forth as the exclusive bidder for 350.71 acres of land in Gurgaon close to the South Delhi for the development of a recreation and leisure project including a golf course.
Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) disqualified other two bidders on technical reasons.
The land deal would be the largest since March 2008 with an appropriate price of Rs 1,700 crore, when BPTP outbid DLF to win land worth Rs 5,000 crore in Noida near Delhi, but eventually it was cancelled.
In terms of value, it is the fourth largest land deal after Delhi-based BPTP’s failed purchase of Noida land, Unitech’s Rs 3,300 crore purchase in Vishakhapatnam in 2007 and Adani’s Rs 2,250 crore deal in Mumbai in 2006.
India’s second largest developer Unitech and newcomer Bharti Realty were also competing for the piece of the land situated on the Gurgaon-Faridabad Road, but were disqualified due to technical reasons.
HSIIDC had first invited bids in the month of January for this project that will have a commercial, golf course, sports and residential development.
DLF had sought changes in bid’s terms and conditions seeking easier payment plan. The HSIIDC re-invited bids in July giving bidders the facility of a distributed payment plan over 7 years with an additional 20% FAR (Floor Area Ratio). The reserve price for the land was Rs 11,978 per sq. meter or almost Rs 1700 crore.
The winner is expected to give only 10% of the total amount within 30 days of acceptance of the bid and another Rs 100 crore in 2 installments within two years. Remaining amount is to be paid in 6 monthly installments within 3rd and 7th year. An interest of 11% on the outstanding amount through the 7-year term will also be paid by the winner on reducing balance basis.
Shares of DLF, on Tuesday, closed at Rs 375.15, up 2.95% or Rs 10.75. The total quantity of shares traded was 3,751,527 on the BSE.
