NTC plans auctioning of Mills land
National Textiles Corporation (NTC) has fixed reserve prices for properties in Bangalore and Indore and has planned to start its auctioning in the next couple of months. The state-owned firm has fixed a reserve price of Rs 600 million ($12.8 million) for the online auction of its Indore mill land and Rs 500 million for the Bangalore property, Chairman K Ramachandran Pillai said. The company is auctioning 16 acres at its Indore Malwa mill and 1.73 acres at the Minerva Mills in Bangalore.
NTC had earlier sold two mills in Mumbai for a total of Rs 19.8 billion to Indiabulls Real Estate, paying more than double the asking price for the second auction. The company will release the advertisements for the auctions in a week. Then it will take another 45 days from the date of release of the advertisements to commence the auctions, he added.
Experts say response for Indore and Bangalore would not be as high as the Mumbai auction as the financial capital typically commands higher rates. But it should be more than the normal physical auction that is what we presume, as the same company gets multiple opportunities to participate in the bid.
Property prices in major Indian cities such as Mumbai and Delhi have nearly doubled in the past year as home and office buyers returned to the market, lured by a recovering economy and low mortgage rates. Mumbai is rated among the most expensive office locations in the world.
The company is expecting to generate Rs 50 billion in the current financial year by selling most of its properties in Mumbai and other properties in Indore, Kanpur, Bangalore and Coimbatore. The company had received seven bids for its second Mumbai mill land auction from suitors including DB Realty, Peninsula Land and Lodha Developers.
NTC had earlier sold two mills in Mumbai for a total of Rs 19.8 billion to Indiabulls Real Estate, paying more than double the asking price for the second auction. The company will release the advertisements for the auctions in a week. Then it will take another 45 days from the date of release of the advertisements to commence the auctions, he added.
Experts say response for Indore and Bangalore would not be as high as the Mumbai auction as the financial capital typically commands higher rates. But it should be more than the normal physical auction that is what we presume, as the same company gets multiple opportunities to participate in the bid.
Property prices in major Indian cities such as Mumbai and Delhi have nearly doubled in the past year as home and office buyers returned to the market, lured by a recovering economy and low mortgage rates. Mumbai is rated among the most expensive office locations in the world.
The company is expecting to generate Rs 50 billion in the current financial year by selling most of its properties in Mumbai and other properties in Indore, Kanpur, Bangalore and Coimbatore. The company had received seven bids for its second Mumbai mill land auction from suitors including DB Realty, Peninsula Land and Lodha Developers.
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25 August 2010
