Several major players, including Sahara Group, ICICI Bank, Bhushan Steel, Bharti Realty, Red Fort Capital, and Shri Lal Mahal, are reportedly competing to acquire 1.18 acres of prime commercial land from Parsvnath Developers, strategically located near Connaught Place in the National Capital.
Earlier this January, Parsvnath announced its intention to monetize the KG Marg land, a parcel it originally purchased for Rs 200 crore back in 2008. The company is reportedly targeting a whopping Rs 700 crore from the sale, which has now gained traction following the recent approval received for the building plan from the local authority just last week. As such, prospective buyers can initiate construction on the site immediately upon concluding the deal, according to sources familiar with the matter.
“A comprehensive first round of bidding along with due diligence has already been completed. With building plan approvals in hand, we will now accelerate negotiations with potential buyers,” stated a source involved in this process. Interest has been shown not only by Sahara Group and ICICI Bank but also by private equity firm Red Fort Capital and a prominent rice company, Shri Lal Mahal, alongside one well-known real estate firm operating in NCR. Initial bids have reportedly reached around Rs 700 crore during this first round of the bidding process.
When approached for comments, Parsvnath Developers Chairman Pradeep Jain remarked, “The process for sale of this land is on. We cannot comment any further.” Assisting in the transaction is property consultant Jones Lang LaSalle India. Notably, the approved build-up area on this prime piece of land is approximately 1.5 lakh sq ft, complemented by provisions for 300 car parking spaces. According to real estate consultants, key office properties near Connaught Place are attracting monthly rentals in the range of Rs 350-400 per sq ft.
While Jain did not specify any timeline regarding the completion of this transaction, insider sources indicated that closure of the deal could occur within this quarter. Parsvnath Developers is currently facing a net debt situation of around Rs 1,200 crore, and aims to diminish this figure to about Rs 500 crore by leveraging the proceeds from this prime property sale. The firm is managing two housing projects alongside various shopping malls at metro stations within the National Capital, and they are also in the process of establishing an office building near Gole Market, an investment pegged at Rs 300 crore.
Moreover, Parsvnath revealed that back in 2010, they procured a sizeable 38 acres of land near Sarai Rohilla from the Railways for Rs 1,651 crore, marking it as the second-largest land deal in Delhi's history. In collaboration with Red Fort Capital, they plan to develop high-end residential and commercial spaces in this venture as part of their expansive strategy to utilize their significant land bank, estimated at around 200 million sq ft throughout the country, enhanced by previous private equity investments from Sun Apollo and JP Morgan in various projects within NCR.