Realty developer BPTP is in talks with Shapoorji Pallonji Real Estate to sell its 15-acre land parcel on Dwarka Expressway for Rs 200 crore, said three persons familiar with the development.
“The term sheet for the proposed deal has been signed recently and the buyer is currently conducting a due diligence. The deal is expected to be concluded over the next few weeks,” said one of the persons mentioned above.
Mumbai-based realty developer Shapoorji Pallonji is looking to develop a 2 million sq ft mid-income residential project on the said plot. A part of the land parcel is likely to benefit from the government’s transport-oriented development policy.
Under TOD zone, the development is incentivized by authorities by providing higher floor area ratio, which will enable vertical construction that’s needed to address the problem of land scarcity.
“We as a company are looking at divesting certain assets with a view to generate cash flows for giving an exit to a few of our Institutional investors and accelerating construction across our ongoing projects; that said we are in talks with multiple interested parties and would not like to comment at this point of time,” said a spokesperson of BPTP.
“We have also taken construction credit lines for a number of our projects from various financial institutions and are slated to offer possession to over 3,500 residential units this year. We have over 6,000 workforce across our projects.”
An email query to Shapoorji Pallonji Real Estate did not elicit any response until the time of going to press.
Recently, the Gurgaon-based developer also sold a 10-acre land parcel in Hyderabad’s Hitec City to Bangalore-based realty developer The Salarpuria Sattva Group. The deal was concluded last week and Salarpuria Sattva is planning to build 4 million sq ft office space on this land parcel.
In 2015, BPTP sold its 8-lakh sq ft office building, BPTP Crest, in Gurgaon, to a joint investment platform of Bengaluru-based builder RMZ and Qatar Investment Authority for Rs 850 crore to pay off institutional investors.
In the current sluggish residential property market, several realty developers across the country are looking to enter into joint ventures and joint development agreements with other players in a bid to receive financial support for future growth. Few realty developers are also looking to monetize by selling their projects and land parcels on an outright basis
(source by:-The Economic Times)