Delhi-based real estate developer Alchemist Township India Ltd has purchased 2 million sq ft prime residential land from Highland Group in the largest realty deal in Kolkata. Although the deal value is not disclosed, in total, Alchemist Township has earmarked approximately Rs 600 crore ($95.2 million) for this project.
The property is located at Kolkata Riverside, a satellite township development encompassing 262 acres being developed on the banks of river Hooghly.
Jones Lang LaSalle India was transaction partner for both the firms in this deal.
Mayank Saksena, managing director - Land Services, Jones Lang LaSalle India, said Kolkata Riverside has a very healthy mix of market drivers, including a 25-acre IT Park created entirely on sustainable development parameters, various commercial establishments catering to the services sector, physical infrastructure and lifestyle features such as a golf course.
It is the largest transaction by size in the private market in Kolkata.
“Alchemist Township has made a very astute choice in terms of location and land parcel magnitude, allowing them to fully capitalise on this township's residential real estate potential," he said.
Sumit Dabriwala, managing director, Highland Group, said, "Alchemist will be the only outside entity to acquire land for residential development in our project."
A spokesperson from Alchemist Township stated that the group intends to develop golf-course facing apartments and group housing in the two plots it has acquired. The corridor where Kolkata Riverside is located is developing rapidly, with high-speed road connectivity to Alipore actively underway. It is the only golf course township in Kolkata.
In May this year, the Delhi-based company also acquired 20 acres of prime land from Bengal Durgapur Aerotropolis Projects Ltd (BAPL) at Durgapur in West Bengal.
Saksena said, “Land prices have not moved up in Kolkata; only the inflationary cost has been included. Unless retail sales start moving, other prices wouldn’t move up. But land transactions have been taking place—developers from Delhi and Bangalore are coming in and buying land assets; local developers are not too keen to invest.”
The largest land deal happened last year when Kolkata Municipal Corporation sold a 2-acre land parcel off EM Bypass Road for Rs 115 acre, valuing the transaction at Rs 57.5 crore per acre, which has been the highest payout to date.
Last year a consortium of developers bought out DLF’s hotel land parcels for Rs 33.35 per acre.
Recently, local developer Diamond Group acquired a land parcel in Alipore. In March this year, Godrej Properties pre-launched its project called Godrej Platinum in Alipore at Rs 21,000 per sq ft.
In January this year, Dabriwal relocated to Kolkata after quitting Future Group’s public-listed retail and logistics infrastructure firm Future Market Network Ltd (formerly Agre Developers).
The township has been promoted by Hiland and Belani groups in a joint venture with Kolkata Metropolitan Development Authority and shoe company Bata India, which has a large tract of land asset.
Dabriwala is a director with Hiland Group and United Credit Belani Group besides being associated with another Kolkata-based realty developer Urbanus Infrastructure Development.
(Edited by Joby Puthuparampil Johnson)