Delhi-based developer BPTP Group may get private equity funding to pay the first instalment on its 95-acre project at Noida in the National Capital Region
NEW DELHI: Delhi-based developer BPTP Group may get private equity funding to pay the first instalment on its 95-acre project at Noida in the National Capital Region, a source close to the development told DNA Money.
With its Rs 1,30,207 per square metre offer, BPTP outbid realtors DLF and Omaxe to bag the project in March. DLF put in a bid of Rs 1,17,000 per square metre while Omaxe offered Rs 80,100 a square metre.
BPTP has to pay the first instalment of Rs 1,250 crore by June 13, after which the ‘deal would most likely be cancelled’. “BPTP sought an extension to pay the first instalment of 25% for the land, after the foreign banks from which it had arranged loans didn’t honour their commitment. The company now has 60 days to make this payment, together with penal interest at 14% per annum,” Credit Suisse analyst Anand Agarwal said in a note to clients.
A source, however, said a PE deal would help the Delhi-based developer pay the amount by the end of this week or early next week.
“BPTP is in the final stages of getting private equity investments. They may come by next week,” the source said.
Details on the PE player and amount of investment being discussed are not available.
Should the deal be cancelled, the project would go to the second-highest bidder DLF.
But deal is not yet cancelled, as told by Yash Pal Singh, officer- on special duty at Noida authority. “The deal is very much active and BPTP is expected to make the payment soon … they still have some time to make the payment,” Singh said.
The viability of the project seems to be in question. According to analysts, with 14% interest, the deal price has gone up to Rs 5,500 crore with rentals of Rs 15,000 per square feet.
“With 8 million square feet of only commercial space and rentals of Rs 14,000-15,000 per square feet, the cost is more than double of Bhikaji Cama and three times of Nehru Place in Delhi. It is just not viable,” a real estate official close to the development said.
vivek_s@dnaindia.net
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