The Hindu Business Line : Noida to sell 12 hotel plots worth Rs 1,500 cr

A month after it pulled off the country’s largest land auction at a record Rs 5,006 crore, Noida appears all set for another round of fierce bidding. The Noida Authority would invite, next week, bids for 12 hotel plots worth at least Rs 1,400-1,500 crore, and real estate majors, including DLF and Parsvnath, may participate in the bidding process.

“Of the 12 plots, five are for five-star hotels, another five for three-star hotels and two for four-star hotels. The reserve price has been fixed at Rs 77,000 a sq. m. We have already sold 100 forms and the response is quite strong,” a senior official said.

Under spotlight

Last month, even amid reports of softening of land prices in certain pockets, realty deals once again came under the spotlight when the Delhi-based BPTP Group snapped up 95 acres of prime commercial land at Noida for Rs 5,006 crore, marking the largest land deal in India.

The land was auctioned by the Noida Authority. BPTP had outbid well-known developers, including DLF and Omaxe, to clinch the land along the Noida and Greater Noida expressway, where it now plans to build a commercial destination with offices, hotel and retail space.

“The BPTP deal has demonstrated that there is no effect of the so-called softening of property prices in Noida as yet, and the commercial rates here are, in fact, bullish. We expect the hotel auctions to do very well,” the official said, adding that the hotel plot will be given on a 90-year lease.

While the five-star hotel plot has an area of 24,500 sq. m, that of four-star and three-star hotel plot entails area of 15,000 sq. m and 7,500 sq. m, respectively.

The authority has called the technical bids on April 24 and the financial bids will be invited within one week of that, the official added.

“Builders can also construct malls and multiplexes within the plot, and they will also get the selling rights of such development,” the official said.

Major deals

Earlier, in 2006, Unitech had bagged a 340-acre city development contract in Noida for Rs 1,583 crore.

Other landmark deals include DLF buying prime Swatantra Bharat Mills land in Delhi from DSCL for Rs 1,675 crore in 2007; and sale by Mumbai Metropolitan Region Development Authority of nearly 75,350 sq. m. in Bandra-Kurla Complex (BKC) for a total of Rs 2,798 crore in 2007.

However, in March 2008, two of the five plots put-up for auction sale by the MMRDA in BKC, had absolutely no bidders.

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