New Delhi, Sep 11 (IANS): Parsvnath Developers Wednesday said it will build a new commercial building near Connaught Place that will be the first major construction in Delhi's central business district in at least 25 years.

"It took us more than four years to get the necessary approvals. It will be a landmark project for us,” said Parsvnath Developers chairman Pradeep Jain.

The project will be developed at a 1.18 acre commercial plot located on Kasturba Gandhi Marg near Connaught Place, a central business hub in the national capital developed in the early 1930s.

Jain said the company had paid Rs.212 crore for the land acquired in 2008. The construction cost will be around Rs.70 crore.

"Overall cost is around Rs.300 crore. We are expecting sales realisation of over Rs.1,000 crore,” he said.

Jain claimed that the company has got all the necessary approvals and the project will be completed within two years.

The company plans to sell or lease out the building for retail commercial and office space. It will have a total area of 130,000 square feet, of which 40,000 square feet will be for retail and the rest for office space.

According to the chairman, the Bombay Stock Exchange (BSE)-listed Parsvnath Developers will shift its corporate office into the new building. Its corporate office is currently located at Barakhamba Road.

Jain said Parsvnath Developers would prefer to sell or lease the building to big corporates for offices and retail outlet.

"Many companies have shown interest. In this location, there is hardly any space available, so we won't be required to put much efforts for sale,” Jain said. However, he declined to name the companies that have shown interest in buying the property.

"This is at an initial stage. I am not in a position to name the companies,” he said.

Jain said the company would utilise the money from the sale of the project to repay debt.

He said the company aims to reduce the debt burden to below Rs.1,000 crore from the current level of around Rs.1,200 crore.