The Hindu : Front Page : Golden Mile turns goldmine for HUDA

Online edition of India's National Newspaper
Friday, Jul 21, 2006

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Golden Mile turns goldmine for HUDA

Staff Reporter

15 plots auctioned for Rs.703 cr.; average price Rs.10 cr. per acre

HYDERABAD: The Golden Mile layout at Kokapet in Rajendranagar mandal has indeed turned out to be a gold mine for HUDA. It has literally rained crores as big names vied to outbid one another, making HUDA earn a whopping Rs.703 crores from 15 plots.

Thanks to good marketing and inherent locational advantage, the layouts abutting the Outer Ring Road and close to the Financial district and IT hub, Thursday's auction saw a five acre plot bid for Rs.14.45 crores per acre, the highest among the plots put up for auction. The plot was bagged by city-based Kailash Ganga Constructions. While the HUDA set an upset price of Rs.4.5 crores per acre, the lowest amount bid for a plot was Rs. 6.1crores. The average price worked out to over Rs.10 crores per acre.

The Golden Mile layout marketed as an exclusive development zone for major corporate projects attracted reputed names in real estate and hotel groups like Prestige Gardens Estate Group from Bangalore, Today from Delhi, My Home Constructions Pvt. Ltd, Hyderabad, Lake Point Builders, Mumbai, Madhucon Properties among others.

47 bidders

As many as 47 bidders participated in the auction by paying an Earnest Money Deposit of Rs. 2 crores. The auction passed off without a hitch unlike last time.

HUDA Secretary and auction officer Venkatram Reddy clarified in the very beginning that filing sealed tenders was optional and they would be opened in the presence of all only after open bidding for each plot. If the amount in sealed tender was higher, it would be taken as the final bid.

The very first plot auctioned went in favour of sealed tender when Pioneer Telafone Ltd. of Viceroy group quoted Rs.10.01 crores per acre while the highest open bid for the same plot was Rs.8.15 crores per acre.

The Prestige group successfully bid for three plots, Kailash Ganga Constructions, Lake Point Builders, My Home Constructions two plots each. The other successful bidders were IBC Knowledge Park, Bangalore, India Hotel Andhra Private Ltd and Madhucon Constructions.

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