Godrej Properties has taken a 10.76 hectares plot on lease in Delhi’s Ashok Vihar area from the Rail Land Development Authority (RLDA) in a deal said to be valued at Rs 1,359 crore, top RLDA sources told Moneycontrol.
“Godrej Properties has emerged the highest bidder for the Rail Land Development Authority’s (RLDA) land parcel in North Delhi’s Ashok Vihar area. The selected bidder has offered an upfront lease premium of Rs 1,359 crore for leasehold development rights spanning across 99 years," Ved Prakash Dudeja, Vice Chairman – RLDA, told Moneycontrol.
The Ashok Vihar land parcel held by RLDA is spread across 10.76 hectares and has a development potential of 2.66 million square feet, he said.
“The residential development envisaged shall stand out to be one of the most modern integrated residential project of Delhi-NCR. The selected developer partner Godrej intends to make it as a smart and healthy living place, catering to demand of mid and premium segment housing,” he said.
Railway Land Development Authority (RLDA), the nodal authority under the Ministry of Railway is entrusted with the task of monetisation surplus land parcels spread across 43,000 hectares at a pan country level, including prime locations in metro cities. The envisaged development in these land parcels ranges from a residential township, mixed land use to Grade A commercial projects.
RLDA had last year decided to monetise two of its land parcels spread across 10.76 hectares located in North Delhi’s Ashok Vihar area.
The bids for the two land parcels measuring 10.76 hectares (approximately 26.58 acres) – the western side measuring 7.87 hectares and the eastern side measuring 2.89 hectares – were opened this year. The reserve price of the land was Rs 1,280 crore, and the lease period was 99 years, RLDA sources had told Moneycontrol last year.
As much of 80 percent of the land can be utilised for residential development, and 10 percent can support commercial retail and 10 percent community facilities, they had said.
Commenting on the deal, Pirojsha Godrej, Executive Chairman, Godrej Properties said, “We believe this project in central Delhi is one of the most exciting projects in our development portfolio and will contribute significantly to the growth of our business in NCR. We will seek to ensure a landmark project that delivers an outstanding lifestyle for its residents."
The development format chosen by RLDA is the Upfront Lease Premium model. Under this model, the commercial consideration of land premium is to be paid to RLDA in eight installments over seven years, with a two-year extension option.
Approval plans may take six to eight months, with construction beginning by the middle of next year, he had said, adding consortium participation would be allowed.
“A long term lease of 99 years would be given to the developer entity or the successful bidder. The commercial consideration of land premium is to be paid to RLDA over eight installments over seven years with the option of two more years of extension. The reserve price for lease premium on land area of 1,07,620 sq m with effective FSI of 2.30 is Rs 1280 crore,” RLDA had said.
The entire land parcel, of which the existing land use is residential, can support 2.66 million sq ft built-up area.
The 10.76–hectare land parcel is surrounded by green spaces on three sides. It is located close to the Netaji Subhas Place and Pitampura metro stations.
This is expected to be an integrated residential development. RLDA has applied for NOC for felling trees at Ashok Vihar site from Forest Department of the Government of NCT of Delhi.
Further, Northern Railway has identified land parcels at some locations in Delhi region for compensatory tree plantation, he had said.
Besides mid-segment housing, the developer entity will have to construct 135 Type I/II railway quarters. the additional space has been reserved measuring 0.52 hectares adjoining RITES colony and Type III railway quarters have also been earmarked.
The additional floor area of minimum 400 sq m, or at the rate 0.6 percent of permissible FAR, shall be allowed to cater to community needs such as community, recreational hall, crèche, library, reading room, senior citizen recreation room, club, and society office.
RLDA is also in the process of preparing a detailed project report (DPR) for projects in Mumbai, Chennai, Hyderabad, and Bangalore for the development of various railway stations.
“In Mumbai, we are redeveloping railway colonies. We have land parcels in Tamil Nadu & Hyderabad or PAN India,” Dudeja had said, adding all these are located in prime locations.