DLF to sell 5-star plot in Gurgaon

DLF to sell 5-star plot in Gurgaon
The Economic Times, July 1, 2009, Page 4

Ravi Teja Sharma NEW DELHI

DLF, India’s largest real estate developer, is selling its prime 2-acre five-star hotel plot in the Cyber City area of Gurgaon to Duet Group’s India-specific real estate fund Duet India Hotels. The developer had earlier said that in view of improved market conditions, it will not be selling its core assets but will still sell non-core assets, which include hotel plots.

Sources close to the development said the plot is expected to be sold for Rs 110-115 crore. DLF though was expecting to get around Rs 125 crore for the plot, which offers 1.53 lakh sq ft of FSI at a rate little over Rs 8,000 per sq ft.

The plot offers a good catchment area for a fivestar hotel because of the number of MNCs located in the area. It will also offer huge potential for F&B business. Duet is also talking to DLF to buy another hotel plot on the Golf Course Road in Gurgaon.

DLF has a JV with Hilton Hotels under which it has land at 4 locations – Kolkata, Trivandrum, Mysore and Chennai. The plan to sell non-core hotel assets does not include these plots of land.

The developer has plots in Jamnagar, Kochi and Delhi, apart from the ones in Gurgaon, which it is looking at selling. Duet India Hotels is a $166.5-million real estate specific PE fund that focusing on commercial integrated business hotel development in CBD and SBD locations in India.