NBCC Eyes International Expansion with Real Estate Projects in Dubai and Saudi Arabia
National Buildings Construction Corporation Ltd (NBCC), a Government of India enterprise wholly owned by the Ministry of Urban Development, revealed that it is engaged in discussions to develop real estate properties in Dubai, UAE, and Saudi Arabia. This potential move represents a groundbreaking venture, as it would be the first instance of a Government of India undertaking developing real estate projects on foreign soil. The negotiations are currently approaching their final stages.
Joint Ventures and Prequalification Bids
To facilitate these ambitious plans, NBCC is in talks with associates in both Dubai and Saudi Arabia to acquire land for development. The company intends to pursue these projects through joint ventures with financial institutions and private equity investors. In line with this strategy, NBCC has initiated the prequalification bidding process, inviting proposals from financial institutions with a minimum of three years of experience in the construction sector, particularly in the development of serviced apartments.
Project Scope and Investment Estimates
NBCC's project portfolio encompasses a diverse range of property types, including four- and five-star hotels, residential developments, and commercial projects incorporating retail spaces. H.R. Dhawan, General Manager of NBCC's real estate division, stated, “It is an open bid that will be closed in 30 days. The bids will show us the approximate pricing that we will receive and then we will put the reserve price. They will range from a minimum of Rs 100 crore to more than Rs 1,000 crore for each project.”
Greenfield Projects and Land Bank
Beyond international expansion, the corporation also confirmed its commitment to developing greenfield projects. NBCC possesses a substantial land bank in India, with holdings in various locations, including Kerala, Kochi, Thiruvananthapuram, Chennai, Guwahati, Siliguri, Mohali, and Ludhiana. The company's most extensive land holdings are located in Chennai (54 acres) and Kochi (50 acres), two cities currently witnessing significant construction activity within the country.
NBCC's Financial Standing
As the largest central public sector undertaking in India's construction sector, NBCC boasts a substantial turnover of Rs 2,000 crore, signifying the financial strength and market presence it brings to these prospective international ventures. With this initiative, NBCC is poised to make a notable mark on the global real estate landscape.