Parsvnath bags 38-acre railway land in heart of capital

Parsvnath Developers Ltd, the Delhi-based realty major, on Thursday bagged 38 acres of prime railway property in the heart of the national capital for Rs1,651.51 crore.

Indiabulls, the only other bidder in the auction conducted by Indian Railways, offered Rs1,257 crore for the land.

The land is located near the Sarai Rohilla railway station, just 4 km from the posh Connaught Place area. Parsvnath will develop it into a housing complex. In square foot terms, the winning bid works out to nearly Rs4,000 a sq ft, although the price of fully developed homes is expected to run into crores of rupees each.

It is after several years that a land deal of this size is taking place in the capital. The last land auction in the capital was held in 2007 when DLF acquired 38 acres near Moti Nagar for Rs1,675 crore from the DCM group.

A total of 19 real estate developers had qualified for the auction. The site is with the Railway Land Development Authority, which has over1 lakh acres of surplus land across the country and it has a mandate to monetise this asset.

''We received two bids and the highest bid was for Rs1,651 crore. The contract will be awarded in a couple of days,'' said RLDA vice-chairman Pankaj Jain. He said the final bid in the auction for the 38-acre land was more than the reserve price, but did not say how much the reserve price was.