A consortium led by ICICI Venture Funds has struck the most expensive real estate deal in Hyderabad city so far, paying about Rs 335 crore for a six-acre plot in the posh Banjara Hills locality. ICICI Venture, along with Nagarjuna Construction and Maytas Infra, a local major, won the plot in an auction by the Hyderabad Urban Development Authority (Huda). The consortium outbid the DLF group, the Raheja group and ITC Hotels to win the plot in Jubilee Hills. It paid about Rs 1,42,000 per square metre or Rs 1,00,000 per square yard versus the normal Rs 95,000 per square yard.

Kishore Gotety, director, investments, ICICI Venture said the consortium plans to build a high-end hotel and a commercial complex. The cost is estimated at Rs 550-600 crore and the consortium partners will invest about Rs 200 crore together as equity. The investment from ICICI’s side is being made from its real estate fund which recently raised about $500m from investors.

“We are extremely enthused by the prospect of an ownership interest… it’s tremendous future prospects motivated us to pursue this transaction,” said Renuka Ramnath, CEO, ICICI Venture. “This is a good property and we knew we had to pay a premium for it. It is located in posh area and is road facing on both sides. Since it is located near the KBR Park there is a lot of greenery,” Mr Gotety said.