The Telegraph
Since 1st March, 1999
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Unitech clinches Rs 1583-crore Noida realty deal

New Delhi, May 23: Unitech today clinched one of the biggest real estate deals at Rs 1,583 crore for a 340-acre plot auctioned by the Noida Development Authority.

“We were told that our financial bid was the highest,” said managing director Sanjay Chandra.

DLF and ICT Bangalore were the other rival bidders after the first qualifying round. Unitech outbid DLF, which, sources said, had bid Rs 1,401 crore.

The company plans to finance the deal through internal accruals and debt. “The land will be used to build residential accommodation,” said Chandra.

Unitech had bid at Rs 11,529 per square metre. This is one of the highest prices paid for a township deal. Reliance had bagged a tender in January in the Bandra Kurla Complex for Rs 1104.11 crore.

Going by the land size and the amount, there have been no offering on this scale so far in the capital, real estate consultants said.

Despite the crash in stock and commodities markets, realty prices have remained firm in most parts of India. Analysts said it is unlikely to fall in the near future as demand still exceeds supply in major metros. The real estate industry has seen some of the biggest deals in the recent past.

DLF Universal was part of a joint venture that recently won the auction for 35.8 acres of Delhi Development Authority’s residential land in a Rs 450-crore deal.

The 16.5-acre Mumbai Textile Mill sold for Rs 702 crore. The land was sold on the basis of closed bid tenders by National Textile Corporation. Real estate consultants viewed the deal as a defining moment for the Mumbai real estate market. DLF and Akruti Nirman had purchased the Kohinoor Mill No 3, Elphinstone Mills and Mumbai Textile Mills in Mumbai.

In Mumbai again, Reliance had set a record when it bought a 7.5-hectare plot in the Bandra Kurla Complex for Rs 1,104 crore.

As the real estate industry witnesses exponential growth in the coming years, real estate consultants feel that the process of acquiring huge chunks of land by them will continue.

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