Real estate major DLF has joined hands with Singapore’s sovereign wealth fund GIC to invest about Rs. 1250 crore for a housing project in Central Delhi. The project will be constructed over the next four years and will be called Midtown.
DLF’s new venture in collaboration with GIC will have the total development potential of about 7 million sq ft. The construction of the project’s first phase has already been stated that reportedly involves 2.5 million sq ft of built-up area, ET Realty reported.
Midtown is located at Moti Nagar, which is a part of the 38-acre land that DLF had bought in 2007 from DCM Shriram and Lohia Group for Rs 1,675 crore. The company has already developed and sold about 2850 housing units under a project called Capital Greens, which also included 1,500 units for the economically weaker section and a commercial building.
Capital Greens was launched in 2010 at 4,500 per sq ft. Currently, the price in the secondary market for the completed units is about Rs 17,000 per sq ft.
It is for the further development of this prime property in the heart of Delhi, DLF has reportedly formed JVs with GIC. The apartments in Midtown is expected to be priced at Rs 20,000 per sq ft.
DLF is expected to open sale of flats in Midtown only after receiving occupancy certificate from the government authorities, as per the newly announced business model.
DLF is a leading name in the Gurugram real estate market where it currently has completed inventories of Rs 13,500 crore, which it expects to sell over the next 5-6 years. However, only a handful of private developers has dared to venture into the residential real estate in New Delhi as compared to adjoining Gurgram, Noida and Faridabad. DLF definitely leads the pack.