HSVP eyes commercial land deals with foreign firms

GURUGRAM: To raise funds to clear its debt, the Haryana Shahari Vikas Pradhikaran (HSVP) is eyeing multiple big land deals with investors and companies based in Canada, South Korea and Japan as they have shown interest in buying commercial properties (land) from the authority. HSVP has a huge land bank at prime locations in Gurugram worth thousands of crores. The authority is now trying to monetise these lands to repay its loan. “Multiple investors have shown interest in buying land from us,” said estate officer-2 Vivek Kalia adding that the authority auctions land through the online portal where anyone can participate. In November 2017, HSVP had sold around 10 acre of commercial land in sector 47 for Rs 842 crore through e-auction to IKEA. The multinational group, which has corporate office in Cyber Hub, is expected to come up with its office and commercial space on the given land. In November 2016, Hyundai had purchased a plot in Sector 29 for Rs 205.88 crore through e-auction.

After the 2017 deal, HSVP had not been able to a similar big land deal in last three years. “Gurugram has always been preferred location for corporates. Being a government agency, we are capable of providing one-point solution to big companies,” said the officer. Stressing on the need for a big land deal, a senior HSVP official said, “The authority is paying Rs 100 crore per month as interest against the loans taken from various banks. HSVP had taken a loan of Rs 14,250 crore from various banks for paying compensation to land owners for acquisition of their lands in the past. HSVP still has to pay several crores to the land owners.” Till November 2018, HSVP’s total liability in the state was around Rs 19,611 crore, of which in Gurugram it was around Rs 11,298 crore.

Source: https://realty.economictimes.indiatimes.com/news/commercial/hsvp-eyes-commercial-land-deals-with-foreign-firms/74625431

March 14, 2020

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