In what could be one of its biggest land deals in recent times, the Haryana State Industry and Infrastructure Corporation (HSIIDC) has started the process of auctioning a land parcel of 11.76 acres behind the HSIIDC office in Udyog Vihar 5 of Gurugram. The reserve price for the land has been set at Rs 686 cr.
The HSIIDC is expecting a good response due to the prime location of the land and its proximity to the national highway. The increment bid price has been fixed at Rs 10 cr.
“Given the location of the property and the fact that it a mixed-use land, we are expecting a good price and hoping for it to turn into one of the biggest land deals in the city in recent times,” said a senior HSIIDC official. A pre-bid meeting was held on Wednesday in Gurugram where multiple big players from the real estate industry, including Spicejet Ltd, Emaar India, Tata Reality and Infra Ltd, Bharti Reality, Central Park, DLF Ltd, JLL, Ambience, CBRE, GMR and Indiabulls real estate Ltd, participated.
The HSIIDC officials are looking for commercial development on the lines of Cybercity on the land under auction, which is also eligible for availing benefits under the transit oriented development (TOD) policy. Floor area ratio (FAR) of up to 350% is available under the TOD policy. The auction will be finalised in two stages - the technical proposals would be invited as part of the pre-qualification process and the e-auction will conclude the process. “The price for the land will be the bid variable. The pre-qualified bidder quoting the highest bid price shall be declared as the successful bidder,” said the bid document.
According to sources within the corporation, the auction of the land comes in the wake of HSIIDC’s ever-increasing debt. The industrial corporation, which has nearly Rs 12,000 cr debt, is expecting the deal to help with the financial burden. However, the reserve price for the land seems to be a little lower than expected. A recent land deal by HUDA had fetched Rs 840 cr for 10 acres in Sector 47 from Ikea. Similarly, Hyundai had paid Rs 200 cr for two acres in Sector 29. The price per acre for these deals ranged between Rs 80-100 cr per acre. In the current case, HSIIDC puts the price per acre at Rs 59 cr only. It remains to be seen if the industrial corporation fetches a higher price in the auction and makes it one of the city’s biggest land deals.