NGEF land fetches Rs 1,327 cr

Sobha-Puravankara combine wins bid

In one of the biggest real estate deals in Bangalore, the Sobha Developers and Puravankara Group combine have bagged the 143-acre NGEF land deal for Rs 1,327 crore as against a reserve price of Rs 737 crore.

The decision to open the bids on Thursday came despite the state government declaring that it intended to revive NGEF and is vehemently opposed to the sale of land.

The Karnataka high court decision, likely on December 14, will clear the picture fully. The high court had asked the government to furnish a viable revival plans and enquired why the land should not be sold to private players to settle their liabilities.

The Sobha-Puravankara combine outbid the DLF Group of Delhi which had quoted Rs 1,131 crore. In addition to this, Prestige Developers had bid for individual land parcels. This bid too fell through.

The NGEF land on Old Madras Road had come under the hammer after the state government decided to encash the vast real estate reserve to pay all the liabilities, including employees arrears.

The bid was for all the assets, including the factory area of 66.308 acres, buildings thereon and the entire movable assets, 40.066 acres of plantation area and parcels of land measuring 22.377 acres, 5.875 acres and 8.862 acres in the vicinity.

Sobha Developers and Puravankara Group have come together in a 50:50 venture for the bid and according to Sobha, they are exploring options to raise the money, including a public issue.

According to Sobha Developers' managing director J C Sharma: "This was the best parcel of land available in the city with clear title and this is one key reason for doubling our bid as against the reserve price."

Commenting on the deal, an industry analyst said: "This is a fair price at which they have won the bid. There will be an immediate impact on land prices in Whitefield, which is expected to see a correction of at least 25-30 per cent. The land is suitable for a township comprising of residential, retail and office space." The added attraction is the metro station being planned in the neighbourhood.