The government had engaged NBCC as the implementing and marketing agency for re-development of three General Pool Residential Accommodation (GPRA) colonies -- Nauroji Nagar, Netaji Nagar and Sarojini Nagar on sustainable finance model.
The per sq ft rate at which this commercial tower has been sold is even higher than the price of office space in Connaught Place, the heart of the national capital.
NBCC had put on the block 2.83 lakh sq ft of office space in a commercial tower comprising 10 floors. Power Finance Corporation (PFC) has taken four floors and HDFC three floors while the other three companies have bought one floor each.
"WE have achieved a sale price of about Rs 38,000 per sq ft which is very good in this slow market," he said.
Also Read
To meet the construction cost of projects, he said, around Rs 13,000 crore will come from Nauroji Nagar and another Rs 20,000 crore from Sarojini Nagar. "We will get a management and marketing fee from the government."
In October 2015, Godrej Properties had sold 4.35 lakh sq ft in a commercial project at BKC, Mumbai, to healthcare major Abbott for about Rs 1,480 crore, making it one of the largest office space deals.
On this Nauroji Nagar deal, Property consultant JLL India's CEO (Operations and International Director) Santhosh Kumar said: "It's a good rate in this market. This is because of the prime location and Grade A office space being built by NBCC."
NBCC had authorised state-owned MSTC Ltd for conducting e-auction to sell freehold office space in this tower. The e- auction was conducted on May 30.
There are total 12 towers in this project, comprising more than 30 lakh sq ft of prime commercial office space.
Mittal said the Nauroji Nagar project would be completed by 2020.
The Union Cabinet had approved the redevelopment of seven old GPRA colonies -- Sarojini Nagar, Nauroji Nagar, Netaji Nagar, Kasturba Nagar, Thyagraj Nagar, Sriniwaspuri and Mohammadpur in Delhi.
NBCC, which is under the administrative control of the Ministry of Urban Development, is present in three main segments -- Project Management Consultancy (PMC), Real Estate Development and EPC Contracting.
Disclaimer: No Business Standard Journalist was involved in creation of this content