Real estate major DLF is set to close the Swatantra Bharat Mills (SBM) real estate deal with DCM Shriram Consolidated (DSCL) for over Rs 1,600 crore on Thursday. This will be the largest private sector land deal in the country and will give DLF access to about 38 acres of prime land, at a distance of just about 4-5 km from the capital’s central business district, Connaught Place.

Interestingly, the company had bought about 25 acres of land contiguous to the SBM plot in 2005. DLF already has an in-principle approval to develop an IT SEZ on this land.

Earlier this year, the company acquired another 2 acres in the same locality.

With the acquisition of SBM’s 38 acres, DLF will have a 65-acre contiguous landbank in Delhi. If the real estate major goes for an integrated township on this land, it will be the largest such project inside a city.

Also, this will probably be the first integrated township of its kind, combining an IT SEZ with a massive housing supply for those working in the SEZ.

When contacted, DLF group executive director Rajeev Talwar said: “As soon as the deal is completed, the stock exchanges will be informed. We will be able to make a comment only after that.”

SBM is located at the intersection between Shivaji Marg and Zakhira Bridge in north Delhi. According to banking sources, DSCL is expected to shortly convene its board meeting to formally approve the deal. Sources further say the payment of Rs 1,600-plus crore will be made to two different parties, DSCL and the Lohias (the Indo-Rama group), who are learnt to be part-owners of the property. The exact shares of the two could not be ascertained, though DSCL has the major share.

It is learnt that DLF is mulling an investment of Rs 11,000-12,000 crore towards development of this land into an integrated township, comprising office space, houses, commercial units and hospitality. By far, such integrated developments have only been taking place outside the metros, in satellite cities.

Earlier, DLF too had a clear focus on the satellite markets, mainly Gurgaon. However, during the past few years, the company seems to be shifting its focus to Delhi and has participated in most land auctions conducted by the Delhi Development Authority (DDA).

The company has announced an investment of about Rs 6,000 crore for developing a 35-acre convention centre in Dwarka, which will include a 1 million sq ft shopping mall. The company is also developing an office-cum-commercial centre in south Delhi’s Jasola area.