In a deal with Rail Land Development Authority, the Godrej Properties purchased a 27-acre plot in New Delhi’s Ashok Vihar locality area for worth Rs. 1100 crore, the sources said.
According to the sources, this company will construct flats free of cost for railways and 50% of the flats will be sold at market value for the economically weaker section. The payment for these dwelling units can be paid off in eight years at an interest rate of 12 percent.
However, the Godrej properties denied to comment on the deal and said that we cannot make a comment on the market value as per the company policy.
The sources however informed that two other bidders were the Adani Group and Eldeco. As a part of its expansion plan, the Godrej Properties is acquiring land directly or via joint ventures.
Last year, the company went into a joint venture with Hero Cycles to develop a 4-acre plot on Golf Course Road in Gurgaon.
In 2018, the Godrej Properties raised Rs.1,000 crore via the issuance of shares to GIC-managed investment company Gamnat Pte for funding of its expansion plan.
The Rail Land Development Authority planned six such vacant plots across the metro cities as the authority is responsible to generate revenue from vacant land. They are likely to earn approximately Rs. 10,000 crores via land monetization. The plots comprises of 16 hectares in posh Mumbai areas such as Bandra, Mahalaxmi and near Lokmanya Tilak Terminal. The authority also owns land in South Indian cities like Chennai and Hyderabad.
The RLDA [Rail Land Development Authority] figured approximately 45 sites for which bidding will be practiced in a phased manner. These sites have the potential to generate a revenue of over Rs. 42,000 crore.