BPTP bags 95 acres of land in Noida

New Delhi: Real estate company BPTP Group has snapped up 95 acres of prime commercial land at Noida for Rs 5,006 crore. The land was auctioned by the Noida Authority.

BPTP, which outbid three well-known developers DLF, Omaxe, and Ansal Properties and Infrastructure Ltd, to clinch the land along the Noida and Greater Noida expressway, plans to build a commercial destination that will have offices, hotel and retail space. BPTP quoted Rs 1.30 lakh per sq. m against the reserve price of Rs 77,000 per sq m.

“We are very excited. This is an ambitious project. India lacks large, planned commercial district with modern concepts and quality facilities. Delhi does not have a proper business district. We will make this commercial complex a world-class destination,” Mr Kabul Chawla, Managing Director and promoter of BPTP Ltd, said.

Upfront payment:

He said that the company will look at funding the deal through internal accruals (reserves and receivables) and debt. Against the total amount, the company will have to pay about 25 per cent immediately (Rs 1,200 crore), and the balance needs to be paid over the next eight years. “For the upfront payment, as much as 80 per cent can be funded through our internal accruals and the balance will be debt,” he said, projecting BPTP’s net profit for the year ending March 2008 at over Rs 300 crore against a topline of Rs 1,250 crore.

The company - which has ongoing projects in Faridabad, Gurgaon, Noida and Hyderabad - will also to have shell out 11 per cent towards lease rental and 8 per cent towards stamp duty.

Open to partnership:

Besides the land, the construction cost is estimated to be around Rs 3,000 crore. “We are open to strategic partnership, but have no plans at present,” he said. He said the project will be completed in five years, with the first phase to come up in two years. “The revenue will start to accrue in 6-9 months as we start booking space,” he added.

Today’s land deal is being touted as the largest realty deal by its sheer overall value. Earlier, in 2006, Unitech outbid India’s largest real estate company DLF to bag the 340-acre city development contract in Noida for Rs 1,583 crore. Other landmark deals include DLF buying prime Swatantra Bharat Mills land in Delhi from DSCL for Rs 1,675 crore in 2007; Unitech bagging 1,750-acre plot in Vishakhapatnam for Rs 3,228 crore in 2007; sale by Mumbai Metropolitan Region Development Authority of nearly 75,350 sq. m. of land in Bandra-Kurla Complex for a total of Rs 2,798 crore in 2007. City-based developer Wadhwa Builders had paid Rs 5.04 lakh per sq. m. for the 16,500 sq. m. plot auctioned by MMRDA, marking the largest-ever deal on the basis of the value per sq. m. Wadhwa paid Rs 831 crore.