Elan Group buys 40 acre land for Rs 580 cr from Indiabulls

In a major land deal, Elan Group has acquired approximately a land parcel of 40 acre worth Rs 580 crore in Gurugram from Indiabulls Real Estate. The land will be used for housing and commercial projects. The land is located on Dwarka Expressway. With this purchase, Elan Group will be entering the housing sector having a 5 million sq ft of total development potential. By far Elan Group has completed three commercial projects including office and retail. As of now, it is building five commercial projects. As per sources, the company has purchased approximately 40 acre licensed land parcels. Out of which 30 acres is reserved for residential areas and 10 acre for commercial development. The advance payment has been made by Elan Group to Indiabulls Real Estate. The deal will reach a conclusion in the upcoming months. In a regulatory filing, Indiabulls Real Estate informed that their board has given approval for the divestment of 100 % stake in the four subsidiaries of the company, owning the land in Sector 106, Gurugram. The term sheet had been signed. In due course, the definitive agreement too will be executed. The consideration for sale for the same is Rs 580 crore which is subject to required adjustments. Many developers in the real estate sector are adopting asset-light models or being a part of joint ventures with landowners. The Delhi-NCR market has witnessed several big-ticket land dealings in the past 15 years. Image Source