HYDERABAD: The 400-acre parcel of land adjacent to the University of Hyderabad (UoH) in Kancha Gachibowli, is estimated to be worth Rs 20,800 crore, with a per-acre value of Rs 52 crore, according to a valuation report prepared by government-approved valuers Parish Rao Panse and Rao Associates.
The report, accessed by this newspaper, reveals that the Telangana State Industrial Infrastructure Corporation (TGIIC) raised approximately Rs 10,000 crore by issuing bonds through the National Stock Exchange (NSE), using the controversial parcel of land in Kancha Gachibowil as security. This move has triggered widespread public discussion about the actual value of the land.
“Based on local enquiries with area property brokers, residents, recent market sale and feedback from various reliable sources, the commercial land value in this locality ranges between Rs 50 crore and Rs 55 crore per acre, depending on factors such as size, location and shape of the property,” the report stated.
Taking into account factors like size, location, shape, rental yield, demand and supply, government policies, market conditions and future prospect, the Fair Market Value (FMV) was determined to be Rs 52 crore per acre, the report said.
The report also detailed other valuations like realizable value at 80% would be Rs 16,640 crore and distress value at 70% would be Rs 14,560 crore.
To raise Rs 10,000 crore, TGIIC issued eight bonds on the NSE at a 9.35% interest rate. The 400-acre land was mortgaged to Beacon Trusteeship Limited through “Deposit of Title Deeds”. ICICI bank served as the “Account Bank” for the bond issuance.
Following the government’s decision to auction the 400 acres, sources indicate that discussions have taken place between TGIIC and Beacon Trusteeship Limited regarding the auction process, since the land is currently held as security. However, the outcome of these talks remains undisclosed.
