Prestige Group is in advanced negotiations with TDI Infratech to enter into a joint development agreement to develop a 5,100 square-yard residential property in Lutyens’ Delhi, said people aware of the development.
The property, owned by TDI Infratech, has a market value of Rs 325-350 crore and an estimated revenue potential of Rs 700 crore, they said.
According to experts, Prestige Group may opt for eight-nine boutique apartments, marking its entry into Delhi’s residential market.
“The company has signed a term sheet with the owner and is conducting legal due diligence before signing the final agreement. The revenue from the project will also be shared with TDI Infratech. Usually, high-rises are not allowed in Lutyens’ Bungalow Zone, but this area has some high-rises,” said one of the persons, who did not wish to be identified.
The asset has a loan of about Rs 225 crore on it, which is expected to be cleared by Prestige Group, according to people in the know.
“The joint development will see Prestige invest the money in the construction of a boutique luxury residential development in Lutyens’ Delhi,” said another person.
“As of now, nothing conclusive has been done. We are still in talks,” said Ravindra Taneja, chairman, TDI Infratech.
Prestige Group refused to comment on the deal.
The company has an upcoming 2.2 million-square-foot residential project in Noida Sector 150 and it is also scouting for land parcels across Delhi and Gurgaon to expand its residential footprint.
Prestige Group has been focusing heavily on larger township projects to expand its presence across major markets in the country. It also has a significant presence in the luxury segment, with properties priced over Rs 7 crore.
The group has completed 285 projects spanning a developable area of 170 million square feet and has 54 ongoing projects across segments, with a total developable area of 75 million square feet.
Further, it is planning 44 projects spanning 99 million square feet and holds a land bank of about 680 acres, as of July, with operations across 13 cities.
Earlier, Godrej Properties had entered into a similar joint venture agreement with TDI Infratech to develop an ultra-luxury residential project on Shaheed Bhagat Singh Marg, in Gole Market near Connaught Place, one of the prime locations in central Delhi. TDI Group, which owns the land parcel, has approval for a nine-story tower and plans to have 46 ultra-luxury apartments.
Lutyens’ Delhi, in the heart of the capital, is among the poshest locations in the country and is home to politicians and business leaders. It rarely sees properties exchange hands, as a large part of the 26 square km locality is owned by the government.