Experion Developers, the fully FDI-funded real estate developer backed by Singapore’s Experion Holdings, has acquired three land parcels in NCR for Rs 1,100 crore for residential and commercial development, its CEO Nagaraju Routhu told ET.
Among the acquisitions, a 4-acre land plot situated on Golf Course Road in Gurgaon was acquired for Rs 400 crore, while an additional 5-acre parcel in Noida’s sector 45 was for Rs 250 crore.
Both acquired land parcels have been earmarked for residential development and were procured through government auctions.
“In addition, we have acquired a commercial land parcel on Golf Course Extension road with a development potential of around 1.1 million sq ft through the insolvency process. The acquisition cost for this parcel was Rs 450 crore, and we will invest another Rs 250 crore in developing it,” said Routhu.
The Indian arm of Experion Holdings Pte Ltd, Singapore – a real estate investing arm of the $2.5 billion AT Holdings group of companies – has so far focused on Gurugram and Lucknow markets.
“In the Golf Course Extension road project, the committee of creditors voted in our favour, and then NCLT approved it. It will be an office and retail project and the leasable area can go up to 2 million square feet,” the executive said.
Experion will invest Rs 700 crore on Golf Course Road project to develop around 800,000 sq ft and around Rs 700 crore in Noida to develop about one million sq ft.
It is expecting about Rs 3,400 crore revenue from both the projects.
“First priority for us is NCR, once we reach our targeted level, in terms of projects and area, we will look for opportunities outside,” said Routhu.
Experion is developing townships, group-housing projects, commercial landmarks, organised retail destinations, hotels and resorts across Andhra Pradesh, Delhi NCR, Goa, Haryana, Maharashtra, Punjab, Tamil Nadu, and Uttar Pradesh.
The land acquisition activity has especially accelerated in the past two years. More than half the total land acquired in the last 5 years came after January 2021 onwards.
Developers and foreign funds focused mainly on Delhi-NCR and Mumbai to invest in land acquisition during 2018-2022 as over 60% of the fund was used in these two cities, an analysis by property consultancy firm CBRE reveals.
Delhi-NCR attracted $3.8 billion to acquire 1760 acres of land spread across 67 deals, while Mumbai witnessed 73 deals to acquire 960 acres for the same amount.
Bangalore and Hyderabad were other prominent cities that captured 9% and 7% of the total investments made in land acquisitions.
Source : ET