Almost 4 Lakh Sqft of Commercial Real Estate in World Trade Centre Auctioned by NBCC Creating a Record

In a major step taken for the real estate sector, the state-owned construction giant, NBCC, recently organised a sale of approximately 4 lakh square feet of prime office space located in Nauroji Nagar, South Delhi.

This landmark real estate transaction, amounting to a whopping Rs 1,557.51 crore, took place during the 21st auction for commercial spaces in the illustrious World Trade Centre at Nauroji Nagar, Safdarjung Enclave, New Delhi, Delhi 110029.

Prominent entities like HDFC Bank and Petronet LNG were among the six successful bidders.

As we look into the specifics, private entities picked up an impressive 2.97 lakh square feet of this space for a total value of Rs 1,183.7 crore.

Out of the six successful bidders, five were from the private sector, with a lone government entity also securing a piece of this huge real estate opportunity.

Historically, this stands as the most substantial sale realization from a single auction since the inception of the World Trade Centre in Delhi back in 2017.

To date, NBCC has astoundingly sold an aggregate commercial inventory measuring 21.7 lakh sq ft via open e-auctions, which translates to a sales value of Rs 8,751.61 crore. Additionally, the unsold commercial inventory that found buyers in this auction was approximately 3.91 lakh sq. ft., valued at Rs 1,557.51 crore.

The Ministry of Housing and Urban Affairs, under the Indian Government's auspices, has designated NBCC (India) Ltd, a distinguished Navratna enterprise, to spearhead the redevelopment of Nauroji Nagar, New Delhi. As a part of this initiative, NBCC has been granted the authority to market this commercial space on a freehold basis.

Insiders have revealed that HDFC Bank made a significant acquisition, securing an entire tower encompassing 10 floors and spanning an area of 2,84,567 square feet. This purchase was made at a rate of Rs 37,161 per square foot, bringing the total transaction value to Rs 1,130.63 crore. In a similar vein, Petronet LNG procured 94,095 square feet of space, spread across three floors, for a cumulative value of Rs 373.81 crore.

Notably, with these transactions, 10 out of the 12 available towers in the World Trade Centre have found owners, leaving just two full towers and a handful of units up for grabs.

The auction's reserve price was set at Rs 37,161 per sq foot, but the fervor of the bidding saw it peak at Rs 43,161 per sq ft. Insiders also hinted at the strategic vision behind these sales. The revenue amassed from these commercial unit sales is earmarked for the redevelopment of residential colonies, including the likes of Sarojini Nagar, Netaji Nagar, and Nauroji Nagar.

This move not only underscores the vitality of the Delhi real estate market but also paves the way for urban redevelopment, benefiting both commercial and residential sectors. The magnitude of these transactions sends a positive signal to investors, reflecting the robustness and potential of India's real estate landscape.