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Delhi-based real estate firm BPTP has bagged the country’s largest land deal worth Rs 5,006 crore. In a fiercely fought bidding war, BPTP beat the country’s largest real estate firm DLF to win the 95-acre plot in Noida’s sector 94.

The consortium comprising BPTP and its three subsidiaries offered Rs 1,30,207 per sq metre, compared to DLF’s Rs 1,17,000 per sq metre and Omaxe’s Rs 80,000 per sq metre. The fourth bidder, Ansal API, didn’t meet the technical criteria.

The BPTP deal leaves other bigticket land transactions in the country far behind in absolute terms, but is not the most expensive. Last year, Wadhawan Group won the bid for a 7,107 sq metre commercial plot at the Bandra-Kurla Complex (BKC) in Mumbai at Rs 5.04 lakh per sq metre.

The other big deals include Adani’s Rs 2,250-crore deal with HDIL in BKC, DLF’s Rs 1,675-crore acquisition of DCM Shriram’s property in Delhi, Unitech’s Rs 1,586-crore deal in Noida and DLF’s Rs 702-crore purchase of NTC Mills land in Mumbai.

The deal is being seen as a major leap for BPTP, a closely-held firm promoted by Kabul Chawla. The company, which sold 5% stake to Citigroup last year for an undisclosed sum, expects to close the current financial year with a revenue of Rs 1,200 crore and net profit of Rs 400 crore.

BPTP director Sudhanshu Tripathi said that the acquisition will be funded purely through internal accruals. It is a staggered payment, where BPTP will have to pay only 30% of the total amount now. The company will pay the rest in 16 instalments over eight years, along with an interest of 11% compounded annually on the due amount. The company may take on board strategic investors for the development of the project, Mr. Tripathi said. BPTP, which has put off its IPO till market sentiment improves, is raising money through private equity.

Industry watchers believe BPTP’s bid may be a bit too aggressive. “BPTP has paid a lot, much higher than the floor price of Rs 77,000 per sq metre. They will have to work hard to ensure a good return,” said consulting firm Realty & Verticals director Rajan Ahuja.

Mr. Tripathi of BPTP disagreed. “There is no commercial space development opportunity available in Delhi. Rents have skyrocketed. This piece of land has the potential of being the biggest commercial hub, as one doesn’t get land of this size anywhere in NCR. Moreover, it’s well connected with South Delhi through the expressway,” he said, adding the project is going to fetch them very good returns.

Mr. Tripathi said the land would be developed as a central business district. It will comprise offices, retail, hotels and service apartments. BPTP doesn’t intend to create residential space in the project. “We will draw a plan for the entire chunk of land within a year. The first phase of the project will be completed in two years, while we propose to complete the entire space of 90 lakh sq ft in five years,” said Mr. Tripathi. The commercial complex will have a total covered area of 25%.

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