Delhi-based realty major Parsvnath Group has paid Rs 500.86 crore ($77 million) to Rail Land Development Authority (RLDA) a part of Ministry of Railways, for the development of 15.27 hectares (38 acre) of railway land area situated at Sarai Rohilla-Kishanganj in Delhi. This is the third tranche of the overall payment for the transaction.
The firm had struck a deal with RLDA to develop the asset in November 2010 for an aggregate value of Rs 1,651 crore. Indiabulls, the only other bidder in the auction conducted by Indian Railways, had offered Rs 1,257 crore for the land at that time.
“The company has so far made payments of three instalments together with interest aggregating to Rs 1161.46 crore and has completed requisite formalities pursuant to which the aforesaid development agreement has been executed between RLDA and the SPV for development of the project on May 31, 2013," said Pradeep Jain, chairman of Parsvnath Group.
Private equity firm Red Fort Capital, which has $1 billion of assets under management in India through multiple investment vehicles, had previously invested an undisclosed amount for the project.
"The project involves development of luxury air-conditioned residential apartments, commercial/shopping areas, railway housing, railway service building and common facilities, hospital/school and other amenities, state of the art club with gymnasium and sports facilities etc,” Jain said.
US-based Callison LLC has been appointed as architect for the project in co-ordination with architect Sikha & Associates.
Parsvnath Group is working on its 49th project with a total area of 76 million sq ft. The firm's business portfolio includes residential, commercial, DMRC projects, hotels, SEZs and IT parks.
(Edited by Joby Puthuparampil Johnson)