Kukreja Group has purchased Air India’s plot in Civil Lines at the rate of Rs 12,227.28 per sq ft, which will further increase to Rs 12,964.4 per sq ft after sale deed. Real estate agents said this land deal is the biggest ever in the city’s history, and likely to give a push to the realty sector.
Known for development of high-rise residential towers in the state’s second capital, managing director of Kukreja Group Shravan Ghanshyamdas Kukreja confirmed his group was the highest bidder in the auction conducted by MSTC Limited. “We received confirmation mail from MSTC Ltd. Reserve price of the land was Rs33.01 crore and we quoted the same price in the online auction. We emerged as successful bidders,” he said.
As per the advertisement notice issued by MSTC Ltd, the Air India plot measures 26,997 sq ft (2,509 sq m). Thus, the purchase price comes to Rs12,227.28 per sq ft. The Kukreja Group will need to pay 6% (Rs1.98 crore) of auction value to the state government for execution of sale deed with Air India. Thus, the purchase rate will increase to Rs35 crore, which means a price of Rs12,964.4 per sq ft.
One of the oldest real estate agents, Pankaj Roshan, told TOI, “It is the highest-ever deal in the city’s history. None of the deal as yet have surpassed Rs10,000 per sq ft for open land. The deal is a good sign for the city. It will boost the realty market.”
As per MSTC’s advertisement notice, 14 properties of Air India located in 10 cities, including the one in the city, were being auctioned. Earlier, the auction was on July 8 and 9 but no bids were received for the land in Nagpur.
TOI had on September 10 reported Air India lowered the reserve price by 10% since it could not attract bidders in first round. The latest auction was held on September 23 and 24.
Having paid earnest money deposit of Rs66 lakh, Kukreja quoted on September 24 and managed to get the landmark plot of land.
Kukreja said, “We procured the land for city’s development. Also, the deal is part of our group’s ongoing efforts to give high-rise towers to the city. We have already planned a benchmark project of the city on this land. It will be the most high-end and premium residential project of the city with 30 floors. With lush green spaces in the vicinity, the project will be a hit,” he said.
This will be the 11th project of Kukreja Group in the city. The group has given four high-rise buildings at Civil Lines, Byramji Town and Wardhaman Nagar. The group’s under construction Infinity project is also of 30 floors and 110 meter high, easily the tallest building of the city.
A residential project is also under construction at Wardhaman Nagar and a commercial project at Mihan.
Popular as office of Indian Airlines for decades, the plot procured by the group is situated right at the square adjacent to Institute of Science. Housing the office of Air India, the single-storey building with red-brick façade was brought into use in 1992. The construction of the building was reportedly started in 1988-89.
