GMR Infrastructure has developed a monetisation plan to develop the remaining 184 acres of Delhi’s Indira Gandhi International Airport in four phases over 10 years. The airport developer’s move to unlock value from real estate assets comes nearly five years after its first round of monetisation, which involved awarding development rights over 45 acres to create a hospitality zone.
At present, four hotels have started operations while others are in the process of being completed. The long term plan for the remaining land will include building office spaces, convention districts and cargo facilities, according to the company’s annual report for FY14. ?With Air India joining Star Alliance, IGIA is set to become an international hub for passenger traffic and cargo movement. To maximise this potential, DIAL has developed a commercial property development monetisation plan, including developing office space, F&B districts, convention districts and 5 star deluxe/budget hotel/service apartments in 184 acres in four phases,? the company said in its annual report. The Delhi International Airport (DIAL) is the GMR subsidiary that runs the airport.
GMR’s senior management has previously said it planned to monetise between 8-14 acres in the current fiscal, and up to 28 acres next year. The company’s average realisation in the previous round of monetisation in 2009 was around R88 crore per acre. In May, GMR’s chief financial officer Madhu Terdal had said the company would look at starting off the process in the later part of the year if the market was able absorb the assets at an ideal price. He had said the firm was also evaluating options such as a joint venture model or joint development model.
