January 2010

RLDA Makes 4th Attempt to Sell Prime Land at Commercial Hub in Mumbai

by Paul Joseph January 29, 2010

A parcel of land close to the Bandra-Kurla commercial hub in Mumbai has been put up for sale again by the Railway Land Development Authority (RLDA). The reserve price of the 45,371-square-metre plot was last pegged at Rs 3,960 crore. This is the fourth attempt by RLDA, the nodal agency for development of railway land in the country, to sell the land. It has invited expressions of interest (EoIs) from companies to develop the prime land. The last date for receiving EoIs is February 28, after which a new reserve price will be announced. The land authority had put the auctioning on hold earlier as the deputy commissioner of the area claimed part ownership of the land. “The dispute with local authorities had been partly solved. We hope to resolve it completely soon,” said a senior official from RLDA. In its previous attempt to sell the land in 2008, RLDA had cut the reserve price of the plot by nearly 14 per cent to the current Rs 3,960 crore. It also reduced the minimum networth requirement by similar margins in a bid to perk up the interest of bidders. Though developers such as DLF, Unitech, Parsvnath and Indiabulls expressed interest in the project, they backed out as the reserve price was considered too high given the slowdown in the real estate. Earlier, the authority had more than trebled the reserve price of the plot to Rs 4,628 crore, on the grounds that extra development could be done on the land due to relaxed norms. The state government had increased the floor space index to 4 and a developer could build up to 150,000 sq metres, or 1.6 million sq ft, of space. The reserve price, eligibility criteria and other conditions were again set to change, said a senior RLDA official. On two other occasions in the past, the RLDA failed to continue with the auctioning of the plot due to slowdown in the real estate sector and change in development plans. “We hope that this time it goes through,” the RLDA official said. Developers are keenly watching the reserve price to be announced by RLDA, which will determine their bid. “Last time, the reserve price was too high. Given the oversupply in the Mumbai market, we have to see the reserve price and take a call,” said Rajeev Talwar, executive director of DLF, the country’s largest developer.

Tagged as: country, deputy, development, mumbai, project, real estate, real estate india, reserve, time

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DLF Looking to Raise Rs 1,250 crore by Exiting Projects

by Paul Joseph January 28, 2010

DLF Ltd, the largest real-estate developer in the country by market value, is looking at raising Rs 1,250 crore by exiting projects, selling land plots and a refund from the Haryana government. The company said it is looking to divest assets at fair market value and has already realised about Rs 170 crore in the third quarter bringing the total to Rs 1,234 crore raised during the first nine months. The developer said it has visibility to raise Rs 1,000 crore as refunds from the Haryana government, resale of land plots from Gurgaon and exits from couple of projects by March end. However, the New Delhi-based company has put its plan to sell the wind power business on backburner as it is expecting the valuation of the business to go up based on healthy returns. DLF had indicated that they have an offer of Rs 1,000 crore for the business. “This (wind power) business generates about Rs 160-170 crore revenue which gives us a return of 15%. We are thinking internally on when to divest this business given the excellent post-tax returns we get in this line of business,” Saurabh Chawla, executive director – finance, DLF said in a conference with analysts. Chawla said the company is in negotiations with Delhi Development Authority (DDA) for settlement of Dwarka project which is expected to fetch Rs 900 crore by the next fiscal. “We should achieve the target of Rs 2,500 crore of divestments for this year excluding wind and Dwarka exit,” the DLF official said. Meanwhile, the developer said that it has been able to reduce average cost of debt from 11.9% in December 2008 to 10.6% in December 2009 as it has retired the short-term, more expensive debt with cheaper long-term debt. The earlier announced integration of DLF Assets Ltd (DAL) with DLF is expected to be completed this quarter and would be followed by a potential listing on the Singapore stock exchange. Over the last nine months, DLF has received Rs 3,000 crore from DAL and the company has reduced its net debt by Rs 1,200 crore and used the rest as operating expense.

Tagged as: business, developer, dlf, haryana, over-the-last, real estate developers, singapore

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Mumbai Based Real Estate Company DB Realty Ropes in Anchor Investors for Rs270crore

by Paul Joseph January 28, 2010

Mumbai-based real estate company DB Realty Limited, has received bids for Rs. 270 crore towards the Anchor Investor Portion of its IPO which opened today. The anchor investors to whom equity shares have been allocated pursuant to the Offer include Janus, India Capital Fund, Pru ICICI Life, Reliance Capital and India Equity Growth Fund. Janus being a US-based fund has invested in a realty company for the first time. DB realty entered the capital markets on with its IPO of equity shares of Rs 10 each (the “IPO”) at a price band of Rs 468-Rs 486. The IPO will close on February 02, 2010. D B Realty Limited targets to raise up to Rs 1,500 crores through the issue. The IPO also marks the equity dilution of at least 10%, the minimum required to list the company. Jointly promoted by Mr. Shahid Balwa and Mr. Vinod Goenka whose families have been in the real estate and related businesses for more than 95 years and 25 years respectively. Enam Securities Private Limited and Kotak Mahindra Capital Company Private Limited are the book running lead managers to the issue. DB Realty focuses on residential, commercial, retail and other projects, such as mass housing and cluster redevelopment, in and around Mumbai.

Tagged as: book, capital, private-limited, projects, real estate, realty

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Decline in DLF LTD’s Asset Sale Target

by Paul Joseph January 28, 2010

India’s largest real estate firm by market value, DLF Ltd, will be able to raise only half of the targeted Rs5,500 crore this fiscal—by selling assets that are not central to its business of developing property. DLF is selling non-core assets to reduce debt. The company’s net debt for the quarter ended 31 December went up by Rs695 crore to Rs12,830 crore, compared with Rs12,135 crore in the preceding quarter. The realtor’s net debt to equity ratio is 0.5. In an analyst presentation published on the company’s website, DLF has said that it will raise around Rs1,250 crore from asset sales and refunds by the end of the fiscal. This will take the total amount raised from asset sales during the fiscal to around Rs2,500 crore. The remaining amount of Rs3,000 crore would be raised in the next fiscal. In the third quarter DLF raised around Rs170 crore from sale of non-core assets. DLF’s gross debt on 1 October was Rs14,729 crore. While it repaid Rs444 crore out of this during the third quarter, the company also borrowed an additional Rs2,703 crore. Also, its debt increased by Rs180 crore due to consolidation in its business, which has led to an increase in net debt. DLF had tied up with Laing O’Rourke in a 50:50 joint venture in 2006 to undertake projects worth Rs5,000 crore by 2010. Chawla also said the progress in sale of assets has been slow because the company wanted to get a fair value for its assets. “There is no rush or compulsion to sell at distress prices.” DLF is still in talks with the Delhi Development Authority for refund of Rs900 crore after it withdrew from a project to develop a convention centre in Dwarka, it said. Besides this, the developer is considering an offer of Rs1,000 crore for the sale of its wind power business. “DLF had a very aggressive target of asset sales,” said Bhaskar Chakraborty, an analyst with brokerage India Infoline Ltd. “In the worst case scenario, around three-fourths of the asset sales target will be postponed to the next fiscal, and in the best case scenario, half of the asset sales will be delayed.” DLF reported third quarter results on Wednesday. Its revenue increased by 43% to Rs2,152 crore from Rs1,503 crore a year ago. Net profit fell by as much as 30% to Rs468 crore from Rs 671 crore in the year-ago quarter. DLF Assets Ltd contributed to 10% of DLF’s revenue in the quarter ended 31 December. In the previous quarter, DLF announced the integration of its wholly owned subsidiary DLF Cyber City Developers Ltd with Caraf Builders and Constructions, a promoter owned company which in turn owns DLF Assets. DLF Assets buys and holds completed commercial assets of DLF. After the integration, the relationship between DLF and DLF Assets will remain unchanged, Chawla said, adding that the decline in profit was because of a lower revenue realization from sales. “Revenue realization in the third quarter is down by 20% compared to the second quarter,” Chakraborty said. “Last quarter, they were realizing from Capital Greens project which is selling at around Rs8,400 per sq. ft. Realization in Gurgaon projects is far less than Delhi projects.” DLF’s share price rose 2.37% to Rs324.55 on the Bombay Stock Exchange on Thursday.

Tagged as: delhi, dlf, india, quarter, real estate, real estate developers

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Jaypee Kensington Park Heights Apartments In Noida

by Paul Joseph January 28, 2010

Overview: Jaypee Greens- the distinguished name in the India’s Infrastructure Group. After the record breaking response of Kensington Plots, Jaypee Greens proudly presents you with its new project with limited edition towers in Wish Town by the name of Kensington Park Heights in Sec 133, Noida, It offers the most exotic lifestyle with all the luxurious recreational facilities incorporated in the project. 3 BHK flat with area measuring 1750 Sqft . Location: The Kensington Park Heights is located in Sector 133 Noida. External Facilities: • Swimming Pool, • Garden, • Play Area, • Health Facilities, • Recreational Facilities, • Electricity Backup, • Maintenance Staff, • Security Personnel, • security intercom, • Club House Price: 3 BR apartments in Rs.51,97,500/-. About Builder: The Jaypee Group is synonymous with creating premium lifestyle experiences through exclusive golf-centric real estate. The existing 452-acre development at Jaypee Greens, Greater Noida integrates homes with landscaped greens, resort living and commercial developments amidst an 18 hole Greg Norman golf course. It is a complete lifestyle destination offering individual homes and luxury apartments. Contact for Booking: InvestInNest.com (Indian Property Seller) Email: info@InvestInNest.com India + 91 120 4207236 UK User:- 020 8090 4217

Tagged as: greater-noida, house, jaypee group, jaypee-greens, swimming-pool

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Panchkula property the major point of Chandigarh development

by Paul Joseph January 28, 2010

Panchkula, Mullanpur, Mohali, Zirakpur and Darabassi prove himself as pavements of Chandigarh for ever growing infrastructure. Although Darabassi and Mullanpur are still less developing town laying on Chandigarh’s national highway but land prices are comparable in the Chandigarh prime area. Panchkula is another link of case study in point. Till currently, the introduction of Panchkula was that of being suburban area on the outskirts of Chandigarh. The area changed its profit very clearly. Its small houses have made a region to plush apartments and kothies, villages are growingly evolving themselves to become suburban towns. Most village people have sold their field to individual buyers or local residential developers at skyrocketing prices. The capital value for an apartments have between 2600-3500 per sq ft, which is constructed under 2 bhk and 3bhk flats. The rental value for three bhk apartments linked with bedroom, hall and kitchen under the rate 8000-10000 per month. Some prominent builders have announced about property projects . Under the DLF garden city projects near Panchkula, IT will spill over 200 acre. The company claimed to occupy 34 acres and rest is under way. The scheme of 2,3 and 4 bhk flats under it—

Tagged as: chandigarh, chandigarh property, chandigarh real estate, india property

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Realty firms revive projects in Kolkata

by Paul Joseph January 28, 2010

Developers resume work on big-ticket projects after West Bengal agrees to provide incentives Kolkata: Real estate developers are reviving big-ticket projects in Kolkata after securing a commitment from the West Bengal government that “some kind of incentive” would be offered to help them emerge from the downturn. The projects had been halted for at least 18 months. States such as Maharashtra, Gujarat and Uttar Pradesh have already announced incentives for real estate developers. Maharashtra has raised the so-called floor space index, or FSI, a measure of the amount of covered space that a developer can set up on a plot of land. Uttar Pradesh is asking developers to put up a smaller amount than before at the time of allotment for state government projects. “Demands (for incentives) from real estate developers are reasonable,” said Asok Bhattacharya, West Bengal’s minister for urban development. “We are examining the legal aspects and hope to announce some kind of incentive soon.” Road to recovery: An under-construction complex in Rajarhat, Kolkata. Consultants say real estate prices in Kolkata have begun to firm up. Indranil Bhoumik/Mint Among those restarting construction of key projects in Kolkata are Emaar MGF Land Ltd, which plans to build two 250-room hotels under the JW Marriott and Holiday Inn brands, and local players such as Dhoot Developers Pvt. Ltd, South City Projects (Kolkata) Ltd and Merlin Projects Ltd, which are building large commercial complexes in partnership with the Kolkata Metropolitan Development Authority, or KMDA—an arm of the state government. Emaar MGF had in April 2006 secured on lease a 5.9-acre plot in Kolkata paying KMDA a little over Rs200 crore, but till now only “50% of the piling” has been done, according to the firm’s draft prospectus filed with the securities market regulator Securities and Exchange Board of India for its forthcoming initial public offering. An official at KMDA said Emaar MGF has indicated to it that construction of the two hotels would restart “in early 2010”. The KMDA official spoke on condition of anonymity because he is not authorized to speak to the media. “Due to the global economic downturn, the demand for accommodation in the Indian hospitality sector has declined in the past year,” a spokesperson for Emaar MGF said in an emailed statement. “As a consequence, in the short term, we have decided that we will commence developing hospitality projects only once we have obtained financial closure, which we plan to obtain through an optimal mix of equity and debt financing.” Jointly with KMDA, Dhoot Developers is building a 750,000 sq. ft office complex in Salt Lake—the hub of information technology (IT) firms in Kolkata—on a 4.6-acre plot. It secured the lease for the plot by offering Rs188 crore in a March 2008 deal, and has so far paid around 10% of that amount to KMDA, according to the official quoted earlier. “Though I don’t think the downturn is fully behind us, we can’t afford any further delay,” said Dhoot Developers managing director Pawan Dhoot. South City Projects and Merlin had formed a consortium and secured two projects from KMDA—a commercial complex at Nonadanga on the outskirts of Kolkata and a 4.3-acre IT-cum-commercial complex at Salt Lake. In March 2008, they offered KMDA Rs158 crore for the land in Salt Lake, and the total cost of the project, which was to be completed by 2010, was then estimated at Rs300 crore. “Though we are ready with our building plan, we can’t start construction immediately because there are some legal issues with the land (at Salt Lake),” said Pradeep Sureka, a director of South City Projects. “Because of the slowdown, we chose not to push things… We expect the government to sort things out soon.” On the Nonadanga project, he said there were delays in obtaining clearances from the state government because of the general election in April-May last year. “But now we are hopeful of obtaining all approvals by March, and we should be able to start work immediately thereafter,” he added. However, because of the delay, these projects could now cost 8-10% more, according to Sureka. Developers are lobbying state governments for incentives to recover cost overruns. Property consultants say real estate prices in Kolkata have begun to firm up. “The second half of the current fiscal has seen many more sales and bookings compared with the first six months,” said Kaustuv Roy, executive director at the Indian arm of Cushman and Wakefield Inc.—a consulting firm. “Developers are probably betting on property prices remaining firm for the next two-three years, by which time most of these projects would be ready for possession.” Source:http://www.livemint.com/2010/01/25214448/Realty-firms-revive-projects-i.html Posted in Builders/ Developers, Hotels/ resorts, Kolkata, New projects Tagged: Dhoot Developers Pvt. Ltd, Emaar MGF Ltd, hotel, Kolkata

Tagged as: builders/ developers, hotel, hotels/ resorts, media, new-projects

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Affordable housing is in demand

by Paul Joseph January 28, 2010

India faces a phenomenal demand for affordable housing upto 25 million housing units in the urban areas. Everyone needs a decent affordable home and the sense of place and hope for the future that comes with it. The phenomenal demand for affordable housing makes it a focused market for real estate developers. Starting with the National Urban Housing and Habitat Policy tabled in 2007, the government has laid steady emphasis in bridging the gap in housing. Whereas earlier Low Income Group or Economic Weaker Section housing was considered the domain of the public sector, a fresh approach to address the housing shortage has been displayed by the private sector over the last few years. Private real estate developers are already playing a significant role in this context. The way ahead is still not very clear as significant hurdles strew the path, like availability and cost of land, overregulation of real estate and access to low cost building technology and materials. Funding for affordable housing is also a serious barrier. India is poised to provide housing to its teeming urban masses today. Private developers will put their best resources together at NATCON 2010 to ask some hard questions and debate some real solutions to address issues. Among the topics discussed will be ‘Can rental housing/ redevelopment/ slum redevelopment be undertaken by developers to find affordable housing solutions? Source:http://propertybytes.indiaproperty.com/index.php/affordable-housing/affordable-housing-is-in-demand Posted in Builders/ Developers, New projects Tagged: affordable housing, Real estate in india

Tagged as: affordable housing, builders/ developers, housing, income, national, real estate in india

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3C Lotus Panache Noida 3C Lotus Panache Apartment

by Paul Joseph January 28, 2010

3C builders Lotus Panache offers great connectivity with all major Sectors, Public Places, Hospitals, Schools and Metro Stations. Delhi Heart CONNAUGHT PLACE Place is just 30 minutes drive from lotus The 3C builders are now launching a new project Lotus Panache, in Sector 110 of Noida, India’s Largest Green Residential Project.3C Lotus Panache is a green residential estate showcasing 2, 3 and 4 bedroom luxury apartments in varied options. Owning a domiciliation is now white for welfare, your notecase and surrounds now Descend to “Lotus Panache Noida” to piss disagreement in your existence and add eco congenial elements in your experience. A new residential advice is constructed by the 3C’S Lotus panache in aspect 100 of Noida.. The location is next to Greater Noida Expressway and is well connected to DND flyover. The Atlantic amount is 40 acres. The roofing of the buildings is eco friendly and filters rainwater. The roofing’s also support insularism to regularize out climate variations. The area coverage per flat is between 1122 to 1579 per square feet .Vitrified tiles, laminated wooden and ceramic tiles are utilized for flooring. Steam and Sauna Bath, Beauty Salon, Walking Trail and Jogging Track. Source:http://www.bignews.biz/?id=836765&keys=Lotus-Panache-Flats-Apartments Posted in Builders/ Developers, New projects, Noida Tagged: 3C builders, Noida

Tagged as: greater-noida

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Big TV Collaborates with Real Estate Developers to market DTH services

by Paul Joseph January 28, 2010

Anil Dhirubhai Ambani Group company Reliance Big TV today said it has reached deals with real estate developers to market its Direct-To-Home television services in their residential building projects. The company has signed multi-dwelling units (MDU) agreements worth about Rs 20 crore with developers, including Kalpataru, Super Tech, Arihant Builders and Elysium Builders, to target residential and commercial clusters, Reliance Big TV (RBTV) said in a statement. “The MDU strategy will be an integral part of RBTV’s focus to achieve leadership position in the Indian DTH sector… Such MDU agreements are expected to contribute nearly 15 per cent of its volumes in the circle,” RBTV DTH Senior Vice President Sales Ashutosh Srivastava said. The company is targeting a market share of 40 per cent in the MDU segment within the first year of starting operations, the statement added. MDU is a customised DTH solution targeted to tap sections like residential societies, commercial complexes and townships where a single dish antenna can provide the connection to multiple households. The company also said it has branched its entire sales operations into two divisions — retail and institutional. “While the retail division will focus on driving sales through its nationwide retail network and channel associates, the newly-formed institutional division will focus on high- wicket MDU deals,” it said.

Tagged as: indian, president, real estate, real estate india, real estate trends, reliance, retail

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January 2010

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