April 2010

Mantri Realty to set up SEZ at Nagpur

by Paul Joseph April 1, 2010

After affordable housing, now comes an affordable Special Economic Zone (SEZ). The SEZ to be set up in Nagpur by Sunil Mantri Realty will have a rental as low as Rs 16 per sq ft, while for long-lease, it would be Rs 1,600. “We plan to market our Nagpur SEZ as an affordable IT SEZ. We will fix a rental of Rs 16 per sq ft and Rs 1,600 for long-lease,” the company’s chairman, Sunil Mantri, said. Apart from the affordable tag, the SEZ will also be “green” and eschew high-rises, Mantri added. “We intend to give emphasis to natural light and air-circulation in the offices so that companies can reduce their electricity consumption and thereby be cost-effective. Our SEZ will be an environment-friendly one,” said Mantri. To be developed over 40 lakh sq ft, the SEZ would have only two to three story buildings which will further reduce costs, he added. The SEZ will have a ratio of 1:1 between commercial and residential development. “Our experienc is that if you provide all amenities at lower costs, companies will come to you,” he said, citing the example of an American company that bought space in its IT park in Kolhapur. Source:http://www.realtyplusmag.com/rpnewsletter/fullstory.asp?news_id=8129&cat_id=1 Filed under: Builders/ Developers , Nagpur , New projects , SEZ Tagged: Mantri Realty , Nagpur , SEZ

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Entry of Govindpurma now flat culture

by Paul Joseph April 1, 2010

Delhi – NCR Property Development of the talk, Ghaziabad seems very hot. The rapid growth are probably the Ekkara only a few years ago, Time magazine also did it ranks among world’s 10 hot cities. However, areas adjacent to Delhi from Ghaziabad, then say, now the capital good – even in places located a sizeable real estate Ckativitiej are running very fast pace. One such area has emerged, Govindpurma: Hapur Road, Ghaziabad’s property now has become a hub. That is the road adjoining the colony Govindpurma. City of the colony was considered the cheapest ever, but now there also has become hot property. Property to the colony, the houses and flats with demand – with the changing concept of construction is no longer there. Colony among the cheap from expensive houses, flat Making its place. Govindpurma Plawos ever single unit was considered the most friendly place, but Arejideanshal units to meet the growing demand in the colony now has joined the race too flat culture. It is different here, the only company with multi-story Jidic yet have a license, but his book as a whole have become flat before. The colony was built in 1990. As the colony tries to touch the sky now visible buildings are, then only green – were filled fields. Alam Propateerr development today is that hardly any empty plot. Between people of the town was a time to take the colony Propateerr is not like it, but now the property prices here have gone up. What are the prices of plot Govindpurma plot the rates currently are running them 90 square meter plot costs Rs 25-30 lakh, 112 square meter plot prices of 35-40 million, 150 square meter plot prices start from Rs 45 lakh are. The adjoining plots in the colony Aswarnjyantipurma some are cheap. The colony of 90 square meter plot costs Rs 22-26 lakh, 112 square meter plot costs around 33 million and 150 square meter plot costs around 35-36. Entry to flat culture The colony now buy all of the plot is not about power, but too expensive in other areas of Ghaziabad property of there because they can not stand. Such people do not have to be disappointed. Their relatively cheap flat in the colony are also found. Govindpurma remained flat in the 90 square meter plot costs Rs 20 lakh. Built in 112 sq m plot became flat price of around 24 million. Remained flat at 150 square meter plot costs around Rs 26-27 lakh. Jidic group housing in the colony did not design, but later when the prices of land in the colony began to grow a company licensed to make multiple flats. 13 storey of the building work has also been completed. 24 hours of transport means Only four kilometers away from the district headquarters of the colony’s. Govindpurma nearly 28 kilometers away from Delhi colony. Hapur road in front of the colony itself is going through. Anand Vihar Delhi via Hapur in Uttar Pradesh roadways to be the citadel and all roadways and private buses pass in front of the same colony. Colony Auto’s facility. From here, four in the morning around 12 o’clock at night are running auto. Not concerned about security The colony’s location is such that people living here are not worried much about security. Hapur road in front of Colony’s police lines. Pac-47 Battalion colony, where the soldiers are given commando training. In addition, the CISF camp near the colony is developed. Freshwater feature Unlike other areas of Ghaziabad near Delhi, the colony of ground water is much sweeter. Colony is scarcity of water. Both morning and evening with the water supply facility. Colony over the sewer flow is going to solve the problem too. Nearly 25 million new sewer treatment plant at a cost of Rs Jidic remained. Other colonies also affected To highlight the effect of Govindpurma Karapuripurma and its surroundings have a bearing on Aswarnjyantipurma colonies. These places are also rapidly increasing demand for property. Spending enough money on basic infrastructure in these colonies being.

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Realty sector in Mumbai, high prices hit demand

by Paul Joseph April 1, 2010

Realty sales in Mumbai Metropolitan district (MMR) have drooped. The whole region (m sq ft) sold in MMR in December 2009 as contrasted to September 2009 quarter, has come down. Prices have increased or remained flat in some cases. This illustrates that homebuyers are holding on their requirement and exercising restrain. Requirement for big-ticket houses has been the nastiest strike. As per the data compiled by Liases Foras, a property research agency, flats costing Rs 1 crore to 2 crore have observed a pointed drop in demand which is opposing to what a lot of builders in the area have been remarking. Homes estimate over Rs 2 crore are also witnessing the similar tendency. This is in difference to cities similar to Bangalore, Hyderabad and NCR, where sales have developed; therefore proving once more that Mumbai real estate market defies rules valid to other markets. The major cause for the equal being that prices have down in the above-mentioned cities while Mumbai based builders has been growing their prices. MMR’s business turnover index (BTI) registered a 32% recession in the previous quarter of FY09. BTI is the calculating of movement in the sector, which takes into deliberation the price, and area of the total number of units sold across projects crosswise areas. However, what is noteworthy is that in spite of a 20% enlargement in sales in NCR, the overall augment in its BTI is extremely minute. This is because of the truth that there has been a more than balanced amplifies in sales of low-ticket units. Mumbai builders have limited land income to build upon when compared to NCR developers, the cause why they create the majority of what’s obtainable. The competence index in MMR has also drop, the uppermost decline seen in the Rs 1 crore to Rs 2 crore categories. The market competence is the ratio between the average sale movement per building and the rate per sq ft. It proposes command suppleness. So, if the average sale per structure is mounting with the augment in rate, the market is competent. Equally, reduced sales means the market has become relatively inefficient to that extent. Builders must feel that if they amplify price unreasonably, they will be left with unsold inventory and thus lead to the vicious series of debt trap as was the case in 2008.

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Real Estate Developer Omaxe Plans to Raise Rs 800 cr through QIP

by Paul Joseph April 1, 2010

Real estate developer Omaxe on Wednesday said it is planning to raise Rs 800 crore through private placement of shares and stake sale at projects level, mainly to repay part of its debt. “We intend to raise Rs 800 crore next fiscal mainly to retire part of our debt, which stands at Rs 1,650 crore,” Omaxe Chairman Rohtas Goel said. He said the funds would be raised through Qualified Institutional Placement (QIP) or a combination of QIP and private equity at projects level. Goel said the company would launch QIP when the market condition is conducive. “The size of the issue has not been decided yet and would depend on the market condition at that point in time,” he added. Asked about the stake the company would dilute to raise funds through QIP, he said equity dilution could be about 20 per cent. At present, promoters have 90 per cent stake in the company. Omaxe is developing 54 projects, including 22 integrated townships, 21 group housing projects, nine commercial and two hotels. Besides, there are three hi-tech townships in Allahabad, Bulandsahar and Lucknow. The company is present in 31 cities and 10 states across the country. Omaxe reported a consolidated net sales of Rs 280.20 crore for the quarter ended December 31, 2009, compared with Rs 180.42 crore in the year-ago period, registering a growth of 55 per cent. Consolidated Net Profit for the quarter increased to Rs 28.46 crore, compared with Rs 5.88 crore posted in the quarter ended December 31, 2008.

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Aditya Birla Retail closes 39 Stores

by Paul Joseph April 1, 2010

Aditya Birla Retail, which runs supermarkets and hypermarkets, has closed 39 stores, including two-thirds of its outlets in Gujarat, company CEO Thomas Varghese said. The retail venture of the $28-billion Aditya Birla Group has closed these stores over the last nine months as part of a strategy to discontinue unprofitable stores. “Any store that is not making money by next fiscal will be shut down,” Mr Varghese said. That could mean a gradual end to its Gujarat operations. The firm is reviewing its remaining six stores in the state where high rentals and a culture of heavy discounting have made profitability unlikely, Mr Varghese said. “The Gujarati consumer is extremely discerning. This has resulted in a culture of heavy discounting and it has reached a level where it didn’t make sense for us anymore.” Also, landlords in the state were unwilling to renegotiate rent even after real estate rates dropped across the country, he said. The cement-to-cell phone conglomerate, which ventured into retail in early 2007 by acquiring Trinethra Super Retail with more than 170 stores across four South Indian states, today operates more than 600 ‘More’ supermarkets and a handful of ‘More Megastore’ hypermarkets. When it entered the business, the company had set a target of opening 1,000 stores in three years. But an economic slowdown in 2008 hit the organized retail business forced the company to go slow on expansion, just like other big-ticket retailers such as Mukesh Ambani’s Reliance Retail and Kishore Biyani’s Future Group. Expansion is back in the agenda. But the new buzzword is profitability. Aditya Birla Retail has decided that every store in the network has to be profitable, no matter how profitable the chain is. “We want every store in the network to be profitable,” said Mr Varghese. “So, after we open a store, we will give it some time and a lot of support. But, despite our best efforts, if it is not showing promise, we will not hesitate to take a hard decision.” He said the company will achieve profitability by 2012. For expansion, the retail chain is now focusing on hypermarkets, or mega stores, which are much bigger than supermarkets. “We plan to open 10-12 hypermarkets every year,” Mr Varghese said. He said the company has been ignoring the hypermarket format compared with its supermarket business and now it will undertake a course correction. It opened a hypermarket in Mumbai’s Thane suburb this month and will open one in Delhi’s Rohini suburb in May. Most retailers in India are caught in an expansion dilemma. If a company is too slow to expand its network, rivals will take positions in key areas in important cities and towns. If it expands too soon, it could affect the company’s financial stability if sales slow. More clearly wants less risk.’

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