Oberoi Realty is negotiating with HDIL to buy its transfer of development rights(TDR), reports CNBC-TV18's Priyanka Ghosh, quoting sources familiar with the deal. Transfer of Development Rights (TDR) means making available certain amount of additional built up area in lieu of the area relinquished or surrendered by the owner of the land. The deal is likely to happen at Rs 2,100-2400 per square foot, indicating pressure on TDR prices.
HDIL in each of the three quarters of this financial year, has sold one million square foot and prices have held up at around Rs 3,000 per square foot.
Oberoi Realty has been negotiating this deal between Rs 2,200-2,400 for a long time but many media reports were suggesting that it is perhaps DB Realty, which is a stressed out company and therefore is selling at a distressed valuation.
But sources inform CNBC-TV18 that HDIL, which is the largest player in the market, is indeed in advanced talks to sell TDR for about Rs 2,100-2,400 a sq ft