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Even though housing demand still seems on slow track, land deals are happening, with rising interest among developers and investors. Companies are also forming partnerships to either buy or develop land parcels.
Industry experts note that in the current scenario, most companies are building up land banks. Additionally, post-RERA, land prices appears to have cooled down.
Pune land acquisitionLast week,Canada Pension Plan Investment Board (CPPIB) and mall developer Phoenix Mills’ strategic investment platform Island Star Mall Developers (ISMDPL) acquired a land parcel in Pune for ₹161 crore. In April, PML and CPPIB created ISMDPL as an investment platform to develop, own and operate retail-led, mixed-use developments across India.
The acquired land has a developable area of approximately 1.6 million sq ft, which will allow for a planned premium retail development of one million sq ft approximately.
“The west of Pune is one of the fastest developing residential and commercial hubs in Pune and yet lacks large-scale retail, entertainment, and food and beverage options under one roof. We are excited to have found an ideal land parcel in Wakad where we will develop Pune’s second Phoenix MarketCity,” said Atul Ruia, Joint Managing Director, Phoenix Mills.
Other dealsIn July, real estate firm BPTP Ltd sold a 14.8-acre parcel on the Dwarka Expressway to Mumbai-based Godrej Properties Ltd. Previously, BPTP had exited the Hyderabad property market, when it sold a land parcel in Hitec City to Bengaluru-based developer Salarpuria Sattva Group for over ₹200 crore.
L&T Realty too entered a deal with Nirmal Lifestyle Ltd to develop a 16-acre plot at Mulund in Mumbai. As part of the deal, L&T Realty will pay an upfront deposit of ₹400 crore to Nirmal Lifestyle, which owns the land. While Nirmal Lifestyle will continue to own the land, L&T Realty will execute the project.
Indiabulls Infrastructure, a wholly-owned subsidiary of Indiabulls Real Estate, has reached an agreement to acquire group company India Land and Properties (ILPL) for ₹685 crore.
India Land and Properties owns a commercial complex of three towers with total constructed area of 2.67 million sq ft, with the leasable area of 1.94 million sq ft, spread over 8.84 acres at Ambattur Industrial Estate, Chennai.
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