Panacea Biotec, Gurgaon builder to develop township

BANGALORE/MUMBAI: Delhi-based Panacea Biotec and builder Bestech Group will jointly develop a township project over a 100-acre plot owned by Panacea in Gurgaon fetching the pharma company over Rs 750 crore in revenue.

The land was held by Best On Health (BOH), Panacea's wholly owned subsidiary, which holds land on Pataudi Road, Gurgaon, Haryana. Panacea had earlier planned to develop a biotech SEZ on this property, but abandoned the plan. Panacea and Bestech will hold an equal stake in the project, which is expected to generate revenues of over Rs 1,500 crore.

"Both companies have signed a binding term-sheet, or a preliminary agreement, and will build a high-end residential township project, but are yet to finalise the details. This is part of Panacea's strategy to raise funds and cash out at a later stage due to changing market dynamics," a person with knowledge of the development said. An email query sent to Panacea Biotec remained unanswered. Sunil Satija, MD of Bestech Group, said, "We have signed a memorandum of understanding but the final agreement will be signed by the end of February. We will build a residential colony on the plot," he said.

Bestech currently has 8 million sq ft of commercial, residential and retail development under various stages of construction. "Around 75% of the project will comprise villa and residential units, while remaining 25% will be sold as plotted development," said Satija. The company is yet to decide the price at which these properties will be sold.

Many companies are monetising their real estate assets to support balance sheets either by selling land parcels or entering into JVs with property developers.