The property is located at 27, Kasturba Gandhi Marg and the price paid sets a new benchmark for land in the national capital. Primetime Realtors, a recently formed subsidiary of Parsvnath, bought the property.
Parsvnath plans to develop a luxury mall with shopping and office space on the property. This is the first such proposed mall development in an area where land is extremely hard to come by.
The rentals for office space in the area average around Rs 350 to 450 a square foot, while shopping space in the tiny inner-circle area of Connaught Place can range between Rs 1,800 and Rs 2,000 a square foot. The company is targeting average rentals of Rs 600-700 a square foot.
Sources said Parsvnath intends to develop around 1,00,000 square feet of commercial space at the mall. The property development will see an overall investment of around Rs 300 crore, including the land cost, and is likely to be completed by 2010-end.
The country's booming economy has witnessed high demand for commercial and residential real estate. Riding on the unprecedented income growth and corporate profits, real estate developers have a number of projects underway targeting specific user segments.
Parsvnath currently has around 210 million square feet of developable area, including seven special economic zones.