DLF has successfully won the highest bid for a plot in Gurgaon that spans over 11.76 acres. The real estate major will pay a record amount for the plot, namely Rs. 1, 496 crore as per reports. DLF won over other bidders at the auction conducted by the HSIIDC (Haryana State Industrial and Infrastructure Development Corporation) and will be shelling out approximately Rs. 143 crore more for Transit-Oriented Development Rights. An additional Rs. 120 crore will be paid for registration of the plot. The total deal will thus stand at a whopping Rs. 1, 759 crore as compared to the reserve price of Rs. 686 crore for the land parcel. This is a record price point for any land parcel in the entire NCR. The deal was finalized through the e-auction process where the base price was Rs. 127 crore for every acre. Bharti Realty and DLF were the two major bidders in the final round. In the initial round, there were bids from several real estate developers like Experion Developers, Indiabulls Real Estate, Embassy Group, Emaar Group and RMZ. Bharti Realty’s bid stood at Rs. 1, 446 crore. Reports state that the plot’s allotment letter will be given to DLF Home Developers’ subsidiary Aadarshini Real Estate Developers upon paying 10% of the amount quoted. The balance will be paid in installments according to the bid document terms according to DLF. Ikea had previously purchased a plot of 10 acres in Gurgaon for a whopping Rs. 842 back in November, 2017 through the HUDA organized e-auction. The land parcel bought by DLF is located along the National Highway 8 right behind the Oberoi Hotel, Gurgaon and can be tapped for the development of both retail and commercial projects. According to experts, this will be the extension of the micro market DLF Cyber City and the deal is indicative of the long-term motive of DLF to keep its hold over this micro market along the National Highway-8 in terms of the profile of occupiers, supply of real estate and the pricing. DLF will be revaluing the FSI which is undeveloped in this micro market and the auction will be taken as a benchmark in this regard. The land parcel comes with development potential of close to 2.3 million sq. ft. The base floor space index is 1.75 times which can double to 3.5 times after taking into account the TOD (Transit Oriented Development) rights. DLF could get this new development under DLF Cyber City Developers Limited which is a joint venture with GIC, the noted sovereign fund from Singapore. The promoters of the company have already sold their stake of 33.34% in this entity, i.e. DCCDL for a sum of Rs. 8, 956 crore. The portfolio of this rental division currently includes 27 million sq. ft. which has been leased out and close to 4 million sq. ft. which is being constructed. There is also access to a land bank that comes with additional development potential of around 19 million sq. ft. As per industry experts, successful bidders will have to lease out space for proposed developments on this plot at a price range between Rs. 150-160 per sq. ft. within a month for breaking even. Office space lease based rentals in this zone are presently hovering at Rs. 110 per sq. ft. and the right mixture of commercial and retail developments may help DLF get the right average amounts in terms of lease rentals.
DLF buys plot in Gurgaon for record amount
