National Buildings Construction Corporation Ltd (NBCC), a Government of India undertaking fully owned by the ministry of urban development, is in talks to develop real estate properties in Dubai in the UAE and Saudi Arabia, the company said.
If the deals go through, this would be the first time that a Government of India undertaking would develop realty projects abroad. The negotiations are in their final stages.
The company is talking to associates in these countries for buying land to develop properties through joint ventures with financial institutions or private equity investors. It has invited prequalification bids for joint development from financial institutions that have a minimum experience of three years in construction, especially in serviced apartments.
NBCC is planning to develop four- and five-star hotels and residential and commercial projects that include retail spaces. HR Dhawan, the general manager of the real estate arm of NBCC, told, “It is an open bid that will be closed in 30 days. The bids will show us the approximate pricing that we will receive and then we will put the reserve price. They will range from a minimum of Rs 100 crore to more than Rs 1,000 crore for each project.”
NBCC will also develop greenfield projects. In India, the company owns land in Kerala, Kochi, Thiruvananthapuram, Chennai, Guwahati, Siliguri, Mohali, Ludhiana and other places. It has significant land bank in south India, which is currently seeing the maximum construction activity in the country. NBCC’s biggest land pockets are in Chennai and Kochi, spread across 54 acre and 50 acre, respectively.
The largest central public sector unit in the Indian construction space, NBCC has a turnover of Rs 2,000 crore.