A prime 13.59-acre land parcel adjacent to Visakhapatnam's RK Beach area, previously earmarked for the UAE-based LuLu Group, is set to hit the auction block. Recently transferred to the Visakhapatnam Metropolitan Region Development Authority (VMRDA), the urban development body is preparing to initiate the sale proceedings, with an expected revenue in the hundreds of crores. Originally designated for a multi-billion rupee project by LuLu Group, the land was reclaimed by the YSRCP government in 2019. With a reserve price of around ?1,452 crore, the auction is poised to attract attention due to its strategic location and road access.
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A valuable 13.59-acre plot of land situated adjacent to the iconic RK Beach area in Visakhapatnam is set to be auctioned off in the near future. This prime piece of real estate, which was originally earmarked for development by the UAE-based multinational conglomerate LuLu Group, has recently been reassigned to the Visakhapatnam Metropolitan Region Development Authority (VMRDA).
The VMRDA, responsible for urban development in the region, is gearing up to commence the auction proceedings, anticipating a substantial sale price that could reach into hundreds of crores of rupees.
In a twist of fate, LuLu Group had initially planned to invest a staggering ?72,200 crores in constructing an international convention center, a sprawling shopping mall, and a luxurious five-star hotel on this 13.59-acre parcel. The ambitious project was expected to generate employment opportunities for up to 7,000 individuals. In 2018, the then Chief Minister, N Chandrababu Naidu, laid the foundation stone for this grand endeavour.
However, following a change in government leadership after the 2019 elections, the land allocated to LuLu Group was rescinded by the Yuvajana Sramika Rythu Congress Party (YSRCP) government. The government justified its decision by asserting that the land, which held a market value of approximately ?50 crore per acre, had been unethically allotted by the previous Telugu Desam Party (TDP) administration at an astonishingly low rate of ?4 lakh per acre. Subsequent to the revocation of this land allocation, LuLu Group publicly announced its withdrawal from any new ventures in Andhra Pradesh.
Fast forward to 2021, the state government issued a notification for the outright sale of this 13.59-acre property through the National Buildings Construction Corporation (NBCC). The reserve price for this sought-after land parcel was set at a staggering ?1,452 crore, equivalent to nearly ?107 crore per acre. The property boasts road access from three sides, offering excellent connectivity to various parts of the city through well-maintained roads. Despite these favorable attributes, the sale did not materialize due to various factors.
It's important to note that a three-acre portion of this 13.59-acre property is privately owned. In exchange for this portion, the private group was granted lands owned by VMRDA in several prime locations throughout the city.
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