New Delhi: A day after it clinched NTC's Mumbai Textile Mills land for Rs702 crore, (See: Mumbai Textile Mill sets Rs702-crore record) the DLF Group has said that the deal was not overpriced as the valuation was based on economic viability of the upcoming retail and entertainment project, where it plans to invest about Rs300 crore.

"The transaction was not overpriced. This acquisition marks our entry in Mumbai and the western India market with a prime project. The idea was to do a landmark project, and the size and the dimension of this acquisition gives us a canvas to do something unique," DLF officials said.

In one of the biggest realty deals in India, Jwala Real Estate Pvt Ltd — a special purpose vehicle floated by real estate developer DLF — outbid 12 bidders on Monday to emerge as the new owners of the 17.5-acre property.

Company officials said that the group would pump in Rs200-300 crore on construction, design and development of the project. This will be funded through a mix of internal accruals and borrowings. According to company officials, DLF expects the project to be up and running in two years from the date of sanction, with the project to be completed at one go.

The company intends to transform the property into a landmark retail destination. According to DLF officials the project will be a composite mall with space for hypermarket and utility anchors, apparel anchors, brand and lifestyle products, and entertainment including multiplex, family entertainment centre, amphitheatre and action zones.

DLF has in the past completed commercial projects of close to five million sq ft, over four million sq ft in retail in addition to over 20 million residential projects.