Parsvnath Developers has acquired property worth Rs 200 crore in Connaught Place in New Delhi. Pradeep Jain, Chairman, Parsvnath Developers said that they have already acquired the property and paid money for the land. Jain added that they will develop a luxury retail mall with office space property.

According to Jain, if any other property is available and any opportunity comes, they will definitely grab it, depending on the size and location of the property.

Excerpts from CNBC-TV18’s exclusive interview with Pradeep Jain:

Q: How is this acquisition being funded? What are your plans once you acquire this land?

A: We already acquired the property and paid the land money i.e. Rs 200 crore. We already took over possession of the property. Secondly, we are going to develop a luxury retail mall with office space property. This property is located on main Kasturba Gandhi Marg, in the heart of Delhi and part of Connaught Place. It will take almost 3-4 months for all the approvals to be done. Then, we will start construction and it will take about 18-24 months to complete the property.

Q: On the FSI front, you have been allotted 1.5. Is that enough or are you looking at hiking that?

A: We bought this property from the private party and not from the government. So, there is no question of the allotment coming to the FSI part. As of today, the FSI allowed is 1.5 but as per the revised new master plan the FSI allowed is 2.5. With the revised FSI, the area will come out about 165,000 to 190,000 sq. ft.

Q: It would take you about three months to get permission for this and another 18 months to construct the plot. Would revenues by this acquisition come on stream around mid-2010? How much are you expecting?

A: As of now, we plan to lease out this property. With respect to the rate in Connaught Place, as of now, the office space is about Rs 500 to Rs 600 per sq. ft, and the luxury mall is about Rs 1,000 to Rs 1,200 per sq. ft. The average rental we are expecting is about Rs 700 per sq. ft from this property.

Q: Are you looking at more such properties in prime Delhi locations? What are your development plans in and around the Capital region?

A: If any other property is available and if any opportunity comes, we will definitely want to grab that opportunity. It depends on the size and the location of the property. Conservatively, we are aggressive.