In a big-ticket real estate deal, state-owned NBCC Ltd has sold nearly 3 lakh sq ft office space in an upcoming commercial tower at Nauroji Nagar in South Delhi for Rs 1,100 crore to five companies -- PFC, HDFC, HPCL, SIDBI and Energy Efficiency Services.
The government had engaged NBCC as the implementing and marketing agency for re-development of three General Pool Residential Accommodation (GPRA) colonies -- Nauroji Nagar, Netaji Nagar and Sarojini Nagar on sustainable finance model.
The per sq ft rate at which this commercial tower has been sold is even higher than the price of office space in Connaught Place, the heart of the national capital.
"In this market, we have sold all ten floors in this commercial tower in a single day for Rs 1,100 crore. There was apprehension in the market whether we will be able to sell it or not," NBCC India Chairman and Managing Director Anoop Kumar Mittal told PTI.
NBCC had put on the block 2.83 lakh sq ft of office space in a commercial tower comprising 10 floors. Power Finance Corporation (PFC) has taken four floors and HDFC three floors while the other three companies have bought one floor each.
"WE have achieved a sale price of about Rs 38,000 per sq ft which is very good in this slow market," he said.
NBCC CMD said there are 12 commercial towers in this project, which would also be auctioned in a phased manner at an estimated Rs 12,000-13,000 crore.
Asked about utilisation of sale proceeds, Mittal said: "The government has announced redevelopment of seven housing colonies in Delhi at a cost of over Rs 32,000 crore. The sale proceeds will be used for the construction purpose."
To meet the construction cost of projects, he said, around Rs 13,000 crore will come from Nauroji Nagar and another Rs 20,000 crore from Sarojini Nagar. "We will get a management and marketing fee from the government."
In a filing to the BSE, NBCC said it has e-auctioned upcoming commercial and office space in one tower with 2.83 lakh sq ft super built-up area at Nauroji Nagar which would fetch Rs 1,100 crore in stages.
In October 2015, Godrej Properties had sold 4.35 lakh sq ft in a commercial project at BKC, Mumbai, to healthcare major Abbott for about Rs 1,480 crore, making it one of the largest office space deals.
On this Nauroji Nagar deal, Property consultant JLL India's CEO (Operations and International Director) Santhosh Kumar said: "It's a good rate in this market. This is because of the prime location and Grade A office space being built by NBCC."
He said that even in the Connaught Place, which is a prime commercial area of Delhi, the rate is about Rs 25,000- 30,000 per sq ft, while it is Rs 17,000 to Rs 20,000 per sq ft in Gurugram, one of the major commercial centres in India.
NBCC had authorised state-owned MSTC Ltd for conducting e-auction to sell freehold office space in this tower. The e- auction was conducted on May 30.
There are total 12 towers in this project, comprising more than 30 lakh sq ft of prime commercial office space.
Mittal said the Nauroji Nagar project would be completed by 2020.
To boost supply of government accommodations in Delhi, the Centre had last year decided to rebuild seven housing colonies to double the existing housing units from 12,970 to 25,667 units at a total cost of Rs 32,835 crore.
The Union Cabinet had approved the redevelopment of seven old GPRA colonies -- Sarojini Nagar, Nauroji Nagar, Netaji Nagar, Kasturba Nagar, Thyagraj Nagar, Sriniwaspuri and Mohammadpur in Delhi.
NBCC, which is under the administrative control of the Ministry of Urban Development, is present in three main segments -- Project Management Consultancy (PMC), Real Estate Development and EPC Contracting.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)