Property brokerage firm BOP India on Monday said it has bought 4.67 acres of land from Jaypee group in Noida and another 7.5 acres from DLF in Lucknow, for a total sum of about Rs. 450 crore to develop projects.
The company also announced foray into real estate development business with two housing projects at a total investment of about Rs. 1,150 crore over the next three years.
"We have bought 4.67 acres of land in Noida from Jaypee Group for about Rs. 390 crore and another 7.5 acres of land from DLF in Lucknow for about Rs. 60 crore," BOP India Pvt Ltd Managing Director Amit Mavi said on the sidelines of a conference.
The price of the land has already been paid using internal accruals as well as Rs. 65 crore funds raised from Religare group, he said, adding the construction cost would be met through advances from customers against sales and debt.
Giving details about the two projects, Mavi said the BOP group's new realty firm Baya Weaver Ltd will develop 1,200 studio apartments and 4 lakh sq ft of retail in Noida. Nearly 1,000 apartments would be constructed at Lucknow.
"The project cost of Noida is about Rs. 800 crore, including land cost while Lucknow project would cost about Rs. 350 crore," said Mavi, who will also head the development arm.
"We will go for outright purchase of licensed land for our first 5-6 projects. Later, we will start buying land on our own," he said.
Since its inception in 2006, Noida-based BOP India has sold over 85,000 housing units on behalf of other developers.