The Ambuja Neotia group has acquired a 25-acre land parcel from Shapoorji Pallonji Real Estate in Rajarhat Action Area III, making it one of the largest such land transactions in Newtown.

The land, situated close to ITC Infotech campus, was acquired by SP Group decades back when the Mumbai-based construction giant agreed to develop Shukhobrishti — one of India’s largest mass housing projects — in Newtown.

The plot acquired by Ambuja is meant for commercial use where office space and retail development can take place. Industry sources pegged the deal at ₹12-13 crore an acre, lower than the market value due to the complexities associated with the transaction. Even though the two sides have been engaged in discussions over the last few years, the transaction has now finally taken place.

According to the government approval, the Ambuja group can utilise 25 per cent of the area for residential purposes, while the rest will have to be used for commercial development.

Confirming the development, Harshvardhan Neotia, chairman of the Ambuja Neotia group, said the land parcel would be developed over the next 5-7 years.

“A part of the land can be used for residential purposes, even as the majority has to be commercial (office/retail) development. We are still brainstorming what will be the best mix,” Neotia told The Telegraph in the evening.

As part of the initial thought process, a mall is being planned while the idea of developing a hotel has been put on ice.

Ambuja Neotia, arguably the most prominent developer from Calcutta, is engaged in multiple aspects of real estate, including residential, retail and office space. It has also emerged as a serious player in hospitality, having delivered a number of high-end projects and a few under construction. It is also expanding reach in healthcare with super speciality hospitals with particular focus on mothers and children.

On Thursday, Neotia declined to quote a number on the deal value, saying it was a ‘structured deal’ with the SP Group. Shukhobrishti is spread over 150 acres but only half of it has been used so far.

Solicitor firm Aquilaw advised Ambuja Affordable Home with the land acquisition, with founding partners Sanjay Basu and Sucharita Basu, along with real estate and infrastructure practice head Saumya Banerjee working on the deal.