Assam Company mulls selling Lutyens Delhi bungalow

Expecting Rs 1,100 crore from the sale, could become largest deal in recent years

Don't want to miss the best from Business Standard?

Kolkata-based Assam Company is looking to sell a bungalow on the plush Bhagwan Das Road in Lutyens’ Bungalow Zone in Delhi, said a source familiar with the development.

The property, a few minutes walk from India Gate, Supreme Court and high-street shops in Connaught Place, is spread over a total land area of 3.4 acres or 13,723 square metres (147,659 sq ft).

Sources said the property would be sold through auction and prospective buyers need to submit their bids.

Assam Company, which is into tea plantation and oil & gas exploration, is aiming to garner around Rs 1,100 crore from the sale, it is learnt. According to property experts, it could well become the largest deal in recent years.

Last year, billionaire Cyrus Poonawala bought Lincoln House from the US Consultate in Mumbai for Rs 750 crore, in one of the largest property deals. However, it has hit a hurdle with defence ministry asking the local collector to register the property only after its approval.

According to the source, the property sale might help the company repay a high-value loan from ICICI Bank.

Assam Company promoters, the Jajodias, could not be contacted for comments. A mail sent to ICICI Bank did not elicit any response. However, staff at the property in question said they were not aware of any sale.

Early last year, Subhash Chandra-promoted Essel group bought a bungalow in the same area for Rs 304 crore from realty firm Anant Raj Group.

Property consultant JLL is handling the Assam Company  transaction.

According to property experts, Assam Company’s expectation is high, given the subdued market conditions. They say the company could get Rs 700-800 crore from the sale.

“The property markets are dull and demand is weak for large properties. It remains to be seen how buyers respond to the auction,” said a senior property expert, who did not want to be quoted.

Several smaller property deals have taken place in Lutyens’ Delhi in the past couple of years.

Late last year, V C Burman, chairman emeritus of Dabur group bought a bungalow in the tony Golf Links area of Delhi for Rs 160 crore.

Before that, Rajiv Rattan, co-founder of Indiabulls Group, purchased a 2,920-sq yard bungalow on Amrita Shergill Marg in Lutyens’ Bungalow Zone for Rs 220 crore.

In 2015, Delhi-based builder Kabul Chawla of BPTP sold a 575 sq yard bungalow in Golf Links for Rs 65 crore.
(Additional reporting by Ishita Ayan Dutt in Kolkata)