News: Ircon to lease out two lakh sq ft of commercial and retail space-01-04-2021
Ircon to lease out two lakh sq ft of commercial and retail space
Delhi’s Select Citywalk was selected as a successful bidder in March 2020 to operate the mall but the bid was cancelled due to Covid-19 outbreak.
Ircon International Limited, an Indian Railways company, has invited bids to lease out a mall in Noida, and the public sector unit is also looking to rent out another 200,000 sq ft of retail and office space in the satellite city, said its chairman SK Chaudhary.
Delhi’s Select Citywalk was selected as a successful bidder in March 2020 to operate the mall but the bid was cancelled due to Covid-19 outbreak.
“At that time we had asked for a Rs 50 crore upfront premium and Rs 180 per sq ft as rental, and Select Citywalk had quoted Rs 302 per sq ft. Unfortunately, the bid got cancelled and since the market is on a recovery path, we have invited bids again,” Chaudhary told ET.
The company has kept the bidding price at Rs 308 per sq ft for the asset, which is spread over 66,000 sq ft in Noida, and reduced the upfront payment to Rs 25 crore.
The company is also in the process of leasing out 100,000 sq ft of office space in Sector 32, Gurgaon along with 40,000 sq ft of office-cum-retail space in Sector 48, Noida.
“We are evaluating the Noida project again but haven’t finalised anything yet,” said Yogeshwar Sharma, chief executive, Select Citywalk.
Ircon International Limited’s core competence is in railways, highways and extra high tension substation engineering and construction.
“We are building a rental portfolio for regular monthly income. We have acquired these land parcels from the local authority based on the demand to develop retail or commercial spaces,” said Chaudhary.
Ircon International Limited will award one project to one company, which will sublease space in the project.
The company has widespread operations in several states in India and other countries including Malaysia, Nepal, Bangladesh, South Africa, Algeria and Sri Lanka. It has completed 390 projects in India and more than 128 projects in 25 other countries.
