NBCC sells 8.8 lakh sqft residential space in Delhi for Rs 5,191 crore

State-owned NBCC Ltd has sold 8.80 lakh sq ft of residential real estate through e-auction in the national capital for Rs 5,191 crore, with the average per-sq-ft selling rate nearly 60 per cent higher than the reserve price.

The sale is on behalf of the central Government to fund redevelopment projects across various colonies in the national Capital.

In a regulatory filing on Thursday, the company said it has “successfully sold residential apartments of approximately 8.80 lakh sq ft area at Avenue Towers, Africa Avenue Marg Sarojini Nagar, New Delhi through an e-auction at total sale value of approximately Rs 5,191 crore.”

NBCC will get marketing fee of 1 per cent of the sale value.

Delhi-based NBCC, which is into project management consultancy (PMC) and real estate businesses, noted that the average rate stood at Rs 59,014 per square feet.

The average sale rate is nearly 60 per cent more than the reserve price of Rs 37,161 per sq ft. The highest bid is Rs 89,061 per sq ft.

The funds realised through this e-auction will be used towards financing various ongoing redevelopment works, supporting project completion timelines and meeting financial obligations under the Ministry of Housing and Urban Affairs (MoHUA).

These flats located at Africa Avenue are part of the seven GPRA redevelopment programme, which was approved by the Union Cabinet to create modern, sustainable Government housing while optimising land use in the national capital.  The colonies being redeveloped include Mohammadpur, Thyagraj Nagar, Kasturba Nagar, Sriniwaspuri, Nauroji Nagar, Sarojini Nagar and Netaji Nagar.

Of these, three colonies- Sarojini Nagar, Netaji Nagar and Nauroji Nagar-are being implemented by NBCC, while CPWD is implementing redevelopment in Kasturba Nagar, Thyagraj Nagar, Sriniwaspuri and Mohammadpur.

The GPRA redevelopment programme follows NBCC’s self-sustainable model. The commercial assets are monetised to generate revenue for redevelopment.

This model facilitates large-scale development without placing an additional burden on the Government budget

Through this model, NBCC is generating funds for the central Government to support the completion of all 7 GPRA redevelopment projects, including those being executed by CPWD.