The Delhi government-run National Building Construction Corporation (NBCC) has expected to raise about Rs 12,000 crore by selling its 11 office towers in South Delhi through e-auction. The fund is collected to kickstart the state government’s ambitious land monetisation.
All towers are part of redevelopment projects in place of low-rise government housing in prime real estate. NBCC, a 75 per cent government-owned listed company, will be executing this redevelopment with the help of raised amount. The expected fund will also help in redeveloping government colonies in Delhi including high-rise residential towers for government staffers at the existing colonies. The project is slated to be completed in the next four years.
“It’s a unique redevelopment model where we undertake revamp of a government colony and unlock the value of the land bank by going vertical. The funds are raised through commercial exploitation,” says Anoop Kumar Mittal, CMD, NBCC.
Reportedly, NBCC has recently auctioned an upcoming 10-floor commercial tower at Nauraji Nagar which was reserved by HDFC, SIDBI, Hindustan Petroleum (HPCL) and Power Finance Corp (PFC) for a total of Rs 1,100 crore at the cost of Rs 38,000 per sq. ft.
“The total project includes construction of 12 commercial towers out of which one has already been booked. Two more towers will be auctioned next week and the remaining in phases,” confirms he.
Source: ET Realty