Bharti Enterprises' real estate firm Bharti Realty is planning to invest about Rs 3,500 cr for the development of one commercial and one residential project in Delhi-NCR region. The company sees big shift in demand towards organised real estate developers post introduction of new real estate law RERA and GST.
Having already completed some 15 projects, Bharti Realty currently has 5 mln sqft of fully leased Grade-A commercial space, in Delhi-NCR and some other cities, while 1 mln sqft of office building is nearing completion in Gurugram.
"We have bagged a project from Delhi International Airport Ltd (DIAL) to develop a commercial property which will have about 2.5 mln sqft of leasable area, mostly retail," said Bharti Realty MD and CEO S K Sayal. The company will soon start development of this 23 acre of land parcel and is looking to complete it in next four years, he added.
Asked about the project cost, Sayal said this retail real estate project, one of the biggest in Delhi-NCR, will be developed with an investment of about Rs 1,500 cr. It was in the January of last year that DIAL -- which operates the aerodrome in the national capital -- had given the contract to Bharti Realty to develop an area of nearly 2 lakh sq metres of retail space near the airport here.
This contract, decided through bidding process, involved an upfront payment of Rs 315 cr as well as license fee equivalent to 20% of revenue with minimum guaranteed payments, GMR had said last year. DIAL is a subsidiary of GMR Infrastructure. Bharti Realty is already the owner of 2-3 properties in commercial hub 'Aerocity' near Delhi airport.
For its residential project the company has tied up with the Eros Group. "We entered into a joint venture with Eros to develop a housing project on 52 acre land at Surajkund in Haryana. We have got all government approvals to develop this project," he said, adding the construction work would begin soon.
This project, comprising 2,300 units and 5 mln sqft development, would be completed over the next seven years with a cost of around Rs 2,000 cr, Sayal said. The housing project at Surajkund is going to be a vertical smart city where apartment price will be in the range of Rs 1.25- 4 cr.
The two projects would require a total investment of about Rs 3,500 cr that would be funded through internal accruals and bank loans.
Sayal asserted that the company follows right business practices and therefore was unaffected by the real estate law RERA, GST and demonetisation. "We see demand shifting from unorganised developers to big organised players like us," he said. Sayal said the company would continue to focus on the national capital region market. The Bharti Group has presence in telecom, agri-business, financial services, retail and real estate among others.