MUMBAI Real estate developer BPTP is in the process of selling its land parcel in Gurgaon to Godrej Properties. The 20-acre land along the Dwarka Expressway is valued at around `350 crore, said two persons familiar with the development.
“Both the companies are in the final stages of the deal,” said one of the persons with direct knowledge of the transaction.
BPTP is likely to utilise a part of the money received from the land sale to repay JP Morgan Chase as settlement in a dispute over the bank exiting from its investment in the company. “Some part of the money will be paid to Citi too,” said another person who did not want to be named.
This is also one of the few transactions where Godrej Properties is buying land parcel on outright basis for project development.
The real estate development arm of Godrej Group usually prefers to enter into joint development agreements to undertake projects than buying plots on outright basis.
An email query to BPTP remained unanswered until going to press. Godrej Properties responded to query saying, “As a matter of company policy, we do not comment on market speculation.” Godrej Properties is currently developing residential, commercial and township projects spread across around 128 million square feet in 12 cities in India.
Earlier this year, Godrej Properties forayed into the Noida market with a development management agreement to build a housing project on a 36-acre plot.
While this is Godrej Properties’ first project in Noida, it is its sixth in the National Capital Region (NCR).
Last year, BPTP agreed to buy out CPI’s shareholding for `333 crore and JP Morgan’s shareholding for `360 crore payable over a period of time. In 2006, BPTP raised `322 crore from CPI India, a Citigroup fund, now managed by Apollo Management, by selling 5.67% equity stake in the company.
In 2008-09, the realtor further raised Rs 241 crore in two rounds of funding from a subsidiary of JP Morgan Chase group of companies by selling 6.21% stake.
BPTP is also in the process of selling a 25-acre land parcel in Hyderabad for `250 crore to retire old debts. The company plans to sell some of the noncore assets to raise funds for meeting business requirements, said one of the persons mentioned above.