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New Delhi, June 21

A DAY after it clinched NTC's Mumbai Textile Mills land for Rs 702 crore, the DLF Group today said that the deal was not overpriced as the valuation was based on economic viability of the upcoming retail and entertainment project, where it plans to invest about Rs 300 crore.

"The transaction was not overpriced. This acquisition marks our entry in Mumbai and the western India market with a prime project. The idea was to do a landmark project, and the size and the dimension of this acquisition gives us a canvas to do something unique," Mr Ajay Khanna, Executive Director, DLF Retail Developers Ltd, said.

Stating that DLF was strongly committed to the project, he said the bid had kept in mind the internal working of the company.

"We have no regrets and we believe that the bid reflected the true valuation," he said.

In one of the biggest realty deals in India, Jwala Real Estate Pvt Ltd - an SPV floated by real estate developer DLF - yesterday outbid 12 bidders.

Mr Khanna said that the group would pump in Rs 200-300 crore on construction, design and development of the project. This will be funded through a mix of internal accruals and borrowings.

"We expect the project to be up and running in two years from the date of sanction. We don't plan to zone it out but will do it at one go," he added.

The company intends to transform the property into a landmark retail destination.

"It will be a composite mall with space for hypermarket and utility anchors, apparel anchors, brand and lifestyle products, and entertainment including multiplex, family entertainment centre, amphitheatre and action zones," Mr Khanna pointed out.

DLF has in the past completed commercial projects of close to five million sq ft, over four million sq ft in retail in addition to over 20 million residential projects.

(This article was published in the Business Line print edition dated June 22, 2005)
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