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Huda auctions 10-acre plot to Swedish company IKEA for Rs 842 crore |

Huda auctions 10-acre plot to Swedish company IKEA for Rs 842 crore

The Haryana Urban Development Authority (Huda), in its single largest property e-auction, on Wednesday sold 9.82 acres of commercial land in Sector 47 for a whopping Rs842 crore. Huda put the land up for e-auction on October 6.

“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 Rs205 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 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 had 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 Rs1,260 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 Rs842,33,27,000 and it was auctioned for Rs842,38, 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.

A response from IKEA is awaited.

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