DLF buys land for ~15 bn, plans expansion

New Delhi: The country’s largest real estate development firm, DLF Limited, has bought 11.76 acres at Udyog Vihar in Gurugram for ~14.96 billion. DLF emerged the highest bidder in the e-auction organised by the Haryana State Industrial and Infrastructure Development Corporation (HSIIDC).

HSIIDC concluded its e-auction on Monday night for the 11.76-acre plot on NH 8 in Gurugram. According to HSIIDC officials, a subsidiary of DLF has emerged the highest bidder.

DLF’s subsidiary Aadarshini Real Estate Developers has emerged as the highest and successful bidder at ~14.96 billion for the e-auction conducted by the Haryana State Industrial and Infrastructure Development Corporation (HSIIDC), the company said in a filing in the BSE. DLF plans to develop this land into a complex similar to its Horizon Centre commercial complex, which houses companies ranging from Uber and Zomato in Gurugram.

While the reserve price was around ~6.86 billion, which translated into around ~596 million per acre, the e-auction catapulted the price to ~1.2 billion an acre, a record high for Gurugram, sources at HSIIDC said. Earlier in 2017, HUDA sold a 10-acre plot to IKEA for ~8 billion. The current deal has been sealed at a 40 per cent hike in the commercial land price in Gurugram. This was the first auction of a prime commercial site in Gurugram conducted by the HSIIDC that fetched it ~14.96 billion, making it the single ever highest bid for any site in the state. The bids were opened on February 26, where Aadarshini was declared as the highest bidder, the company said.

“The land is located in Phase V of Udyog Vihar, opposite the existing central business district of Cyber City, which is managed by DLF Cyber City Developers Ltd (DCCDL). After development, it would provide more than two million square feet of commercial space,” said sources close to the company.

The second largest bidder was Beech Projects, which had quoted ~14.46 billion.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.