The Hindu Business Line : DLF emerges highest bidder for Tidel-II

Chennai, Sept. 21 The Delhi-based real estate developer, DLF Ltd has emerged the highest bidder for setting up the Tidel-II, the second IT and ITES SEZ, in Chennai.

According to market sources, DLF’s bid was Rs 26.07 crore an acre for the 26-acre property at Taramani taking the total bid amount to about Rs 660 crore in the closed bids called by Tamil Nadu Industrial Development Corporation.

DLF bid at the rate of Rs 5,757 a sq ft for the property measuring about 11.32 lakh sq ft. Among the short listed bidders were RMZ Corp, Prestige Group and Ascendas. DLF won the bids beating 13 firms of whom nine had prequalified to submit the price bids. The property is adjacent to American International School off the IT corridor. It is estimated that over 2.6 million sq ft of built up space would come up at the location.

Leading developers who had participated in the bids said that there was stiff competition as the project is expected to emerge among the landmarks in Chennai.

It was considered an attractive investment as monthly IT space lease rents in the area were at around Rs 47-50 a sq ft. This could be well covered under the project with cost including the land cost estimated at about Rs 1,500 crore.

A rule of thumb calculation shows that at a construction cost of Rs 2,000 a sq ft the total construction cost would be in the range of about Rs 560 crore. For SEZs the industry estimates the construction cost is lower by about 30 per cent as compared to non-SEZ.

According to Mr Ramesh Nair, Local Director, Jones Lang LaSalle Meghraj, the project would firmly establish Chennai’s position as a hub for IT and ITES investments. Demand for IT space was bound to increase.

The natural advantages of the location include the proximity to the city centre, accessibility by road and the mass rapid transport system (MRTS), and the surrounding social infrastructure.

The facility is about 12 km from the international airport and harbour, and about 5 km from the city centre.

The area is also seeing significant development across all segments of the property market including commercial, residential and retail and office space.

The DLF group is among the largest developers in India with nearly 290 million sq ft of space under development and over 615 million sq ft of planned projects.

Apart from residential, commercial and retail space the group is also present in hotels and infrastructure.

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