State-owned construction firm NBCC announced on Friday that it has successfully sold approximately 4 lakh square feet of office space in South Delhi’s Nauroji Nagar for a whopping Rs 1,557.51 crore. The sale took place through an auction with six bidders participating, including HDFC Bank.
NBCC (India) Ltd, primarily engaged in project management consultancy (PMC) and real estate businesses, conducted the 21st auction for commercial space in the World Trade Centre in Nauroji Nagar on Thursday. In an official statement, NBCC revealed that it has sold the entire unsold commercial inventory of around 3.91 lakh sq. ft., amounting to the aforementioned sale value.
HDFC Bank secured one complete tower covering an area of 2,84,567 square feet for a total deal value of Rs 1,130.63 crore, at a rate of Rs 37,161 per square foot. Petronet LNG, on the other hand, acquired 94,095 square feet of space for Rs 373.81 crore, also at Rs 37,161 per square foot.
“This is the highest sale realization in a single auction since the launch of WTC, New Delhi in 2017,” highlighted NBCC. While the reserve price was set at Rs 37,161 per sq ft, the highest rate achieved during the e-auction reached Rs 43,161 per sq ft.
Out of the total area sold, NBCC announced that 2.97 lakh square feet, with a sale value of Rs 1,183.7 crore, has been acquired by private entities. The number of successful bidders was six, including five private bidders and one government entity.
The Union Housing and Urban Affairs ministry has designated NBCC as the implementing agency for the redevelopment of Nauroji Nagar. As such, NBCC is authorized to market the commercial space on a freehold basis.
Since the launch of open e-auctions, NBCC has managed to sell a total unsold commercial inventory of 21.7 lakh square feet worth Rs 8,751.61 crore.
Experts in the real estate industry have weighed in on the successful deal. Vibhor Jain, Managing Director, North India, Cushman & Wakefield, commented, “It is a very well-located asset and will be attractive to a lot of homegrown companies. With very limited Grade A office supply available in Delhi, there are no real benchmarks for prices to be compared for this property.” Bhupindra Singh, Managing Director, North India at Colliers, added, “South Delhi has always faced a scarcity of Grade A office buildings. This asset has emerged as a hands-down winner in the Delhi real estate market due to its prime location, fantastic connectivity, and excellent infrastructure.”
NBCC’s accomplishment in selling such a substantial commercial space highlights its prowess in the industry and its ability to secure high-value deals.
I have over 10 years of experience in the cryptocurrency industry and I have been on the list of the top authors on LinkedIn for the past 5 years.