IKEA buys 10 acres of Gurgaon land for Rs 842 crore at Huda e-auction

The site was put up for e-auction three times earlier but had no takers until furniture giant IKEA placed a successful bid for it on October 31.

The Haryana Urban Development Authority (Huda), in its single largest property e-auction, on Tuesday sold 9.82 acres of commercial land in Sector 47 of Gurgaon for a whopping Rs 842 crore. Huda put the land up for e-auction on October 6.

The site was put up for e-auction three times earlier, but found no takers until the multinational furniture brand placed a successful bid for it on October 31. (Parveen Kumar/HT PHOTO)

“The site was successfully auctioned to iconic furniture retailer IKEA, a Swedish multinational group that designs and sells ready-to-assemble furniture, kitchen appliances and home accessories. It is considered to be the largest furniture retailer in the world,” an official statement from Huda office stated.

“This e-auction has come as a relief to cash-starved Huda,” said Vivek Kalia, estate officer (EO), Huda, adding that Huda sold two acres of a commercial plot to Hyundai in Sector 29 in 2016 at Rs 205 crore.

“This is not a one-off deal as we have planned auctions of other institutional and commercial properties across the city in the next few months. Gurugram has seen a reduced demand, mainly due to the rapidly changing investment scenario in real estate, especially in the commercial section. However, we are hopeful of selling more properties and generating a good revenue for Huda from the estates of Gurugram,” said J Ganesan, chief administrator, Huda.

The site was put up for e-auction three times earlier, but found no takers until the multinational furniture brand placed a successful bid for it on October 31.

Huda officials said more such sites across the city have been identified for e-auction. Huda has earned around Rs 1,260 crore this financial year through e-auctions, officials said.

“E-auction registration for this plot was opened on October 6 and the registration ended on October 26. Its reserve price was set at Rs 842,33,27,000 and it was auctioned for Rs 842,38, 27,000,” said Kalia.

The Swedish company, founded in 1943, is a global design and lifestyle brand leader that could transform India’s home décor market with its contemporary product line-up, according to experts. It also runs a food division in many countries.

“IKEA India has expressed interest in buying the first land parcel in Gurgaon. As of now, the process is under way and we are awaiting approvals from relevant authorities. We will comment further once the process is completed,” said an IKEA spokesperson.