Parsvnath outbids DLF

NEW DELHI: Parsvnath Developers Ltd has won a 126-acre land deal in Chandigarh for Rs 821 crore, outbidding real estate giant DLF Universal.

"We have won the 126-acre land deal in Chandigarh. We are making Rs 821 crore upfront payment to Chandigarh Administration," Parsvnath Chairman Pradeep Jain said.

Besides, the company would have to share 30 per cent revenue from the sale of residential properties. This is estimated to be around Rs 600-700 crore, which would take the entire deal in the range of Rs 1400-1500 crore, he said.

The high-priced Chandigarh deal comes barely weeks after another real estate firm Unitech created history by bagging a 340-acre land deal in Noida for a record Rs 1,583 crore.

While Jain did not say how much DLF had bid, industry sources said it was more than Rs 600 crore.When contacted, a DLF spokesperson did not immediately comment on the deal.

Incidentally, DLF was on the losing side of Noida deal as well, which had gone to Unitech.

Giving details of the project, Jain said the company would develop 40 million square feet of residential space near Rajiv Gandhi Technology Park in Chandigarh.

Besides, it would develop shopping complex in four lakh square feet of area, 5-star club in two lakh square feet, service apartments in one lakh square feet and sports club, he added.

Parsvnath, which is coming out with an initial public offer, is expecting approval from market regulator SEBI shortly, Jain said, but did not say the amount the company plans to mop up.

Market sources, however, say the company could raise about Rs 1,500-1,700 crore through the public offer. Rival DLF is also in the process of tapping the stock market with an initial public offer, touted as the country's largest, to mop up more than Rs 10,500 crore.