Godrej Properties buys 27 acre land in Delhi for Rs 1,359 cr from Railways

In a big-ticket real estate deal, Godrej Properties on Monday said it has acquired nearly 27 acre land parcel in the national capital for Rs 1,359 crore to develop a luxury housing project.

The land parcel belonged to Rail Land Development Authority (RLDA).

Godrej Properties said in a statement that it has added a new project in the residential market of Ashok Vihar, Delhi.

"With the land acquisition value at Rs 1,359 crore, this is one of the largest land transactions in India in recent times," Godrej Properties said.

The payment for this land will be made in instalments over several years as stipulated in the tender documents.

The company will develop a luxury housing project on this 26.58 acre land parcel, with a built-up area of 3.28 million sq ft.

This is Godrej Properties' second project in Delhi after the launch of Godrej South Estate in Okhla in 2019. There are very few residential projects in the national capital by private developers. Realty major DLF is developing a large housing project at Moti Nagar here.

Pirojsha Godrej, Executive Chairman, Godrej Propertiessaid, "We believe this project in central Delhi is one of the most exciting projects in our development portfolio and will contribute significantly to the growth of our business in NCR. We will seek to ensure a landmark project that delivers an outstanding lifestyle for its residents".

Godrej Properties is a real estate arm of the Godrej group.

In a separate statement, RLDA said it has awarded 10.76-hectare land parcel to Godrej Properties on a 99-year lease, through an open bidding process.

The letter of demand was handed over by Ved Parkash Dudeja, Vice Chairman, RLDA to Gaurav Pandey, North India head of Godrej Properties on February 14.

"In the coming days we will be coming up with more land parcels across mega cities of the country and this will provide an opportunity for the developers to partner with RLDA," Dudeja said.

Godrej Properties will give upfront lease premium of Rs 1,359 crore to RLDA in 8 interest-bearing installments and also construct 135 staff quarters for Railways.

RLDA, the nodal authority under the aegis of Ministry of Railway, is entrusted with the charter of monetisation of surplus land parcels which are of the tune of 43,000 hectare at all-India level, the statement said.