NBCC Sells 4 Lakh Square Feet of Office Space in South Delhi for Rs 1,557.51 Crore
State-owned construction firm NBCC announced on Friday that it has successfully sold nearly 4 lakh square feet of office space in Nauroji Nagar, South Delhi. The sale, conducted through an auction, fetched a total amount of Rs 1,557.51 crore and saw the participation of six bidders, including HDFC Bank.
NBCC (India) Ltd, primarily involved in project management consultancy and real estate businesses, organized the 21st auction for the sale of commercial space in the World Trade Centre, Nauroji Nagar, on Thursday.
In an official statement, NBCC stated, “The company has sold a total unsold commercial inventory of 3.91 lakh sq. ft. with a sale value of Rs 1,557.51 crore.”
Among the winning bidders, HDFC Bank acquired one complete tower spanning 2,84,567 square feet at a rate of Rs 37,161 per square foot, resulting in a total deal value of Rs 1,130.63 crore.
Petronet LNG purchased 94,095 square feet of space at the same rate of Rs 37,161 per square foot, totaling a price consideration of Rs 373.81 crore.
“This is the highest sale realization in a single auction since the launch of WTC, New Delhi in 2017,” the company proudly declared.
NBCC revealed that the reserve price set for the auction was Rs 37,161 per square foot, while the highest rate achieved reached Rs 43,161 per square foot.
Out of the total area sold, NBCC mentioned that 2.97 lakh square feet, with a sale value of Rs 1,183.7 crore, was sold to private entities. The remaining bidders consisted of five private entities and one government entity, contributing to a total of six successful bidders.
The Union Housing and Urban Affairs ministry has appointed NBCC as the implementing agency for the redevelopment of Nauroji Nagar, allowing them to market the commercial space on a freehold basis.
To date, NBCC has successfully sold an unsold commercial inventory of 21.7 lakh square feet through open e-auctions, amounting to a total sale value of Rs 8,751.61 crore.
Industry experts have commented positively on the recent deal. Vibhor Jain, Managing Director, North India at Cushman & Wakefield, remarked, “It is a very well-located asset and will be attractive to a 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, added, “South Delhi has always had a shortage of Grade A office buildings. This asset is the clear winner in the Delhi real estate market due to its prime location, fantastic connectivity, and excellent infrastructure.”