NBCC sells office space in WTC, New Delhi for Rs 1,558 crore in 21st auction

New Delhi: State-owned construction firm NBCC (India) Limited on Friday said it has sold nearly 4 lakh square feet of office space in Nauroji Nagar, South Delhi for Rs 1,557.51 crore through an auction to six bidders, including HDFC Bank.

NBCC (India) Ltd, which is mainly into project management consultancy (PMC) and real estate businesses, conducted 21st auction for the sale of commercial space in the World Trade Centre, Nauroji Nagar on Thursday.

In a statement, NBCC said, "the company has sold a total unsold commercial inventory of 3.91 lakh sq. ft. (approx) having sale value of Rs 1,557.51 crore".

HDFC Bank has bought one complete tower comprising 2,84,567 square feet at Rs 37,161 per square feet, taking the total deal value to Rs 1,130.63 crore, it said.

Petronet LNG bought 94,095 square feet space at Rs 37,161 per square feet, totalling a price consideration of Rs 373.81 crore.

"This is the highest sale realisation in a single auction since the launch of WTC, New Delhi in 2017," the company said.

NBCC said the reserve price was Rs 37,161 per sq feet. In this e-auction, the highest rate achieved was Rs 43,161 per sq ft.

Out of the total area sold, NBCC said that 2.97 lakh square feet having sale value of Rs 1,183.7 crore has been sold to private entities. The total number of successful bidders was six, out of which five were private bidders and one government entity.

The Union Housing and Urban Affairs Ministry (MoHUA) has appointed NBCC as the implementing agency for the re-development of Nauroji Nagar. NBCC is authorized to market the commercial space on freehold basis.

So far, NBCC has sold a total unsold commercial inventory of 21.7 lakh square feet through open e-auctions having sale value of Rs 8,751.61 crore.

Commenting on the deal, Vibhor Jain, Managing Director, North India, Cushman & Wakefield, said, "It is a very well-located asset and will be attractive to lot of homegrown companies. With very limited Grade A office supply available in Delhi, there are no real benchmarks for prices to be compared for this property."

Bhupindra Singh, Managing Director, North India at Colliers, said, "South Delhi has been always short on Grade A office buildings. This asset has emerged as a hands down winner as far as Delhi real estate market is concerned for its prime location, fantastic connectivity and the infrastructure seems to be excellent."

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