550 acre is in Bangalore & Mysore. Estimated value about 4.2cr / acre (total ~2300cr). Govt could sell at half price even today and investor still gets a double on his investment of 600cr.
Diversification into real estate too…Like buying land with no property tax, no maintenance, no visits, no registration/stamp duty, no black money and 10% tax on sale profit.
Can it go lower? Sure. Can monetization be delayed for 10yrs? Possible but govt has to pay salaries & maintenance for holding this property. Why did govt carve out a land bank if they don’t want to sell. Govt wud love to encash & carry on. If they don’t get good price they will use for govt buildings so rental revenue like reit. In any case its got margin of safety for principal.
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