New Delhi-based developer BPTP Ltd said it won an auction for a 95-acre (38ha) plot of land for offices and shops at Noida, a New Delhi suburb, at almost twice the reserve price.
BPTP and its associate companies offered to pay a total of Rs5,010 crore ($1.24 billion), outbidding rivals DLF Ltd, India’s biggest listed developer, Omaxe Ltd and Ansal Properties and Infrastructure Ltd.
The company will pay Rs1.3 lakh per sq. m, compared with a reserve price of Rs77,000 a sq. m, the developer said in statement emailed from New Delhi, describing it as the nation’s “largest land deal”.
“We will make this commercial complex a world-class destination,” managing director Kabul Chawla was cited as saying in the statement. Noida is located in neighbouring Uttar Pradesh, adjoining New Delhi’s eastern border and is part of the National Capital Region).
Indian developers are seeking to tap demand from rising incomes in the world’sfastest-growing major economy after China.
Consulting firm McKinsey and Co. estimates that India’s middle class, those with annual disposable incomes between $4,380 and $21,890, will swell more than 10-fold to 583 million by 2025.
BPTP said it’s in discussions with architects including Norman Foster to set up hotels, a financial hub and a commercial complex to benefit from India’s $906 billion economy that’s poised to grow 8.7% in the year to 31 March.
BPTP earned Rs830 crore revenue in the year ended 31 March 2007 and a profit of Rs177 crore, the unlisted company said on its website.
Launched on 1 February, the scheme saw four bidders submit bids for building the 95-acre commercial plot located in Sector 94.
Omaxe, DLF, API and BPTP builders were the four interested parties. (Bloomberg)
PTI contributed to this story.