12th March 2016, Gurgaon: Business Park and Town Planners (BPTP) is likely to sell 15 acres of its land on the Dwarka Expressway to Shapoorji Pallonji for Rs. 200 crore.
The deal is expected to be completed in the upcoming weeks as the term sheet has already been signed between the two parties. Shapoorji Pallonji is a Mumbai-based real estate development company that is looking to construct 2 million square feet of mid-income residential housing on the said land. The area being sold is also likely to receive benefits from the government’s transport-oriented expansion policy.
This area falls in the Transit-Development Zone (TOD). These zones are areas where the developments are rewarded by the government and authorities by providing them with a high floor area ratio. This creates the scope for vertical construction and development which in turn greatly solves the land scarcity problem.
BPTP has also taken lines of construction credit from various financial institutions for several projects. They are scheduled to offer possessions of around 3,500 residential units this year. BPTP has recently sold 10 acres of land package to The Sallarpuriya Sattva Group in Hyderabad’s Hitec City. The Sattva Group is planning to build 4 million square feet of office space on the plot.
BPTP also sold an 8 lakh square feet office building, BPTP Crest, for Rs. 850 crore in Gurgaon, to a joint investment venture of Bengaluru-based developer RMZ and Qatar Investment Authority. The deal was intended to pay off institutional investors.
This scenario reflects the sluggish residential property market due to which most developers are entering into joint ventures and joint development agreements to get the financial support for their potential future growth. Some other developers are selling their projects and land packages to monetise them as well.