Godrej Properties Ltd is understood to have emerged as the highest bidder for a 7.44-acre plot near Tollygunge Phari in south Kolkata.
In an auction conducted by the West Bengal Housing Infrastructure Development Corporation (WBHIDCO) on Friday, the Mumbai-based company offered to pay Rs 230 crore, or Rs 30.9 crore an acre, for the plot, pipping local builders, real estate sources said.
At least four Kolkata developers were in the fray, including Ambuja Neotia, Merlin and South City consortium for the prized plot on BL Saha Road. The land, which comes with a lease of 99 years, can be used for residential purposes.
Real estate circles said the plot can be used for developing about 8.5 lakh sq ft of built-up area. This is the third government land auctioned by WBHIDCO, which has earned praise for running a transparent process and raising big bucks for the cash-strapped state, in less than 12 months.
The Phoenix Mills of Mumbai had emerged as the highest bidder for a 5.64-acre plot, on leasehold basis for residential purpose, in Alipore in August by promising to pay over Rs 400 crore. In December, Ambuja was the highest bidder for a 10.15-acre plot in Nonadanga, on a freehold basis for commercial and residential purposes, for about Rs 260 crore.
If approved by the state cabinet, the Tollygunge Phari plot could be Godrej Properties fourth residential project in Kolkata. Previously, it has developed a large project in Sodepur and a marquee one in Alipore. It is now executing a multi-phase project near Joka.
City-based developers say the participation of developers from outside is a positive sign for the state. “There is a reason why national builders are showing interest in the auction. The land comes from the government, without any litigation. They are ready to sacrifice a bit of the return to gain access,” a builder who participated in Friday’s auction said.
In contrast, the entrenched city-players have ears to the ground and they are a step ahead to scoop up any private land that comes to the market.
Jitendra Khaitan, chairman of Pioneer Properties, said the location was ideal for a high-end residential project.
