DLF, which is known for delivering ultra-modern residential projects, premium homes, offices and retail spaces for nearly six decades in India is all set to spread its charm. It is one of the leading builders in the real estate and is recently in the news as it has once again added an event to its glorifying history. It has emerged as the highest bidder for a land parcel that was set out by the HSIIDC (Haryana State Industrial and Infrastructure Development Corporation). It is expanded to an area of about 11.76 acres in Gurgaon at a cost of Rs. 1496 Crore.
The total deal value would amount to Rs. 1759 Crore as there would be an additional payment of Rs. 143 crore for Transport Oriented Development Rights along with an additional amount of rs.120 Crore for the registration of the land parcel. Rs. 686 crore is set as the reserve price for the land parcel. The deal concluded through e-auction at a base price of Rs.127 crore per acre, which is an unprecedented land parcel in the NCR (National Capital Region). So, it is evident that the deal has emerged out as the big one in its own sense as it has crossed all the benchmarks. Out of more than half a dozen developers, which included Indiabulls Real Estate, Emaar Group, Embassy Group, Experion Developers, RMZ, the final competitors for the land parcel were DLF and Bharti Realty. Although all are leading developers in the real estate market finally, DLF made the highest bid with Rs. 1496 Crore whereas the second highest bid was made by Bharti Realty with an amount of Rs. 1446 Crore. This bid of DLF will see fruitful time ahead. Many builders and developers were eyeing this land parcel for a long time but DLF became the suitable one for it.In fact, it was confirmed by An HSIIDC (Haryana State Industrial and Infrastructure Development Corporation) official that the highest bid for the land parcel with Rs. 1496 Crore, is made by a subsidiary company of the DLF.
Allotment for the land parcel will be issued to Aadarshini Real Estate Developers upon payment of 10% of the quoted amount according to the bid terms. Aadarshini Real Estate Developers is a subsidiary of DLF Home Developers which is showing great success in such a short time. As stated by DLF in a regulatory filing, the balance amount can be paid in installments according to the terms mentioned in the bid document. Even by an e-auction conducted by HUDA, which is the Haryana Government’s Development Agency, in November, Ikea, which is a global home furnishing company bought a 10-acre land parcel in Gurgaon for Rs.842 Crores. The land parcel bears the requisite potential and the ability to develop commercial as well as retail spaces. It is evident from the fact as it is located on NH8 behind Oberoi Hotel in Gurgaon.
Ankur Srivastava, who is the chairman of GenReal Property Advisors stated that the land parcel is an extension of the established DLF Cyber City micro market and the deal reconfirms DLF’s long-term commitment to retaining control over this NH8 CyberCity if terms of pricing, supplier, and occupier profile are considered. It even allows DLF to revalue its undeveloped FSI in the micro market while using this auction as a benchmark. Land Parcel, which is having an area of about 11.76 acres, has a potential of around 2.3 million. To further add to its features, this potential of 2.3 million is leasable.
The base floor space index of this plot is 1.75 times and it is expected to double to 3.5 times after deriving the benefits of Transit Oriented Development (TOD) rights. DLF is indeed on its path of success and would scale new heights in the real estate business. Its joint venture namely DCCDL (DLF Cyber City Developers Limited) with Singapore Sovereign Fund GIC would be the main focus area of DLF. So DLF would come into action for their DLF Cyber City as it is their one of the ambitious projects. DLF Cyber City has even received 33.34% stake from the promoters of DLF. This 33.34% stake will be given to GIC for Rs. 8,956 Crore. Even the transaction was concluded on December 26, and there is a balance of 66.66% which is held by the company in DCDL (DLF Cyber City Developers Ltd.)
There is a leased space of 27 million sq. ft. and nearly 4 million sq. ft. under construction in the rental arm namely, Dlf Cyber City Developers Limited (DCCDL). Singapore Sovereign Fund GIC is a sovereign wealth fund which was established by the Government of Singapore in 1981 to manage Singapore’s foreign reserve with an aim to preserve and enhance the international purchasing power of the reserves in order to attain good long-term reserves. Now DLF is all set to have a joint venture with GIC. This joint entity of DLF and Singapore Sovereign Fund GIC has access to the land bank which has the additional potential of 19 million sq. ft. Even the lease of around Rs. 150 to Rs. 160 per sq ft a month to achieve a breakeven in the proposed development will have to be taken up. This is also applicable to the successful bidder even in the highest amount of bid. Rs.110 per sq ft is covered by the office space lease rentals near it.
A perfect blend of commercial and retail development will help the company in getting the expected average lease rentals. To derive maximum benefit, hard- work, smart-work along with artistic and creative approach is the key to the rise of DLF. Since DLF is known for delivering world-class masterpieces and is considered a leader in the real estate market, so hopes from the joint venture and land parcel is high. A lot of expectations await the future of the upcoming projects. A time to rejoice for DLF with consistent will mark the trend in the realty sector.