promoters

Chennai Based Yuga Homes Announces Launch of Rs 200 crore Residential Project

by Paul Joseph May 27, 2011

Yuga Homes Ltd, a Chennai-based real estate development firm, has announced the launch of its Rs 200-crore residential project, Alta Vida, located on Old Mahabalipuram Road (OMR). The company is planning to complete development of 1.6 million square feet with a project cost of Rs 600 crore in next five years. The first phase of Alta Vida, a 600-apartment project in an area of 600,000 sq ft, would be completed by the end of 2013. It had entered into joint venture with Shataptri Estates Pvt Ltd to develop Alta Vida, said R Viswanathan, president, Yuga Homes Ltd. The company has assigned Chennai-based construction company Consolidated Construction Consortium Ltd (CCCL) for the development activities, while the promoters of CCCL also have a stake in the residential development firm, according to company executives. “We have two residential projects under development and another two in the pipeline, comprising a total of 1.6 million sq ft. With the completion of these projects, we will have a total built-up area of 1.85 million sq ft in the next three to five years,” said Viswanathan.

Tagged as: bangalore, completion, development, hyderabad, located-on-old, mahabalipuram, projects-under, promoters, real estate trends, residential, the-completion, the-residential, these-projects

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Brokers Being Used by City Realtors to Grab Lands from Farmers

by Paul Joseph May 3, 2011 Uncategorized

AHMEDABAD : With each unaccounted income disclosures in the recent income-tax raids on four city-based groups, I-T detectives are disclosing newer shady froth of real estate business in the city. I-T officials have found that the raided real estate groups had given so much of freedom to brokers to grab lands from farmers. The property consultants would strike the deal with farmers, mainly to adjust the cash transaction, and realtor would appear only at the time of documentation. Around 200 I-T detectives had on April 28 carried out a search and survey operation on 60 premises of four city-based groups, three of which are popular realtors, while the fourth group has one of city’s well-known jewelers as key promoter. The I-T officials searched many land brokers attached with the realtors and has got Rs 6 crore black money disclosure from one such broker from whom Rs 20 lakh cash was also captured. The total disclosures in the operation have already touched Rs 66 crore. Still more such disclosures are to come while premises of the fourth group are still sealed as the promoters are out on a trip to Singapore. I-T officials have already struck gold in the first raid this financial year and have captured Rs 8.3 crore cash from realtors and property consultants. During the search at the jeweler’s premises, the officials found a difference of Rs 60 lakh in the stock officially declared and displayed at the shop. The department is now closing in on different ways evolved by realtors to avoid tax and ground black money. However, city realtors said that employing brokers while dealing with farmers is no new thing, but now these brokers are used to do foggy deals. “ A builder would book a land at the prevailing rate with token money given through brokers. The brokers would keep the farmers hanging and depending on the cash flow of the builder he would go ahead with the deal on his will,” the official said. The department has earlier already found that the realtors searched used cheque transaction to record cash payments by the buyer against a property.

Tagged as: city, deal, financial, jewelers-as-key, prevailing, promoters, realtors, search, time

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Sabeers Bhatia’s Nano City Project to be Developed in 2000 Acres

by Paul Joseph November 18, 2010 Uncategorized

Nano City, the much touted project of hotmail founder Sabeer Bhatia, is likely to be curtailed to one-fifth the original size if the project takes off. Nano City — proposed to be developed in Panchkula district, Haryana — was to come up over 11,000 acre but now its size is to be around 2,000 acre. Though the MoU for the project was signed in June 2006 under public private partnership between Sabeer Bhatia group and Haryana State Industrial and Infrastructure Development Corporation (HSIIDC), the developer has failed to acquire any land till date, according to a report published in Financial Express. Sources in HSIIDC informed that internal meetings are going on and the developer has been given time till the end of November to submit the final project reports and begin acquiring land. “There has been no communication yet from the developer’s side relating to this but the fate of the project will be decided within a fortnight,” said an HSIIDC official. HSIIDC had asked the developer to curtail the project size in its annual general meeting as the project was not found to be feasible for development over such huge land size. The developer was facing problems in acquiring land due to the high prices demanded by the farmers of that region. Moreover title deeds of the land could not be verified properly as same land was registered under various names. However HSIIDC will only acquire land for the developer for contiguity purpose. The promoters have to acquire the major chunk first and then they can approach HSIIDC for contiguity of land as per the land acquisition policy of the state. On the other hand the developer is busy chalking out the final plans to save the project from being scrapped. Naval Bhatia (Sabeer’s brother), managing director of the SPV floated for the project- nano city haryana infrastructure is keen on moving ahead with the project. The development prospects of project were marred when the promoters failed to pursue the farmers to give away land at prices lower than what they demanded. Moreover to induce fresh equity into the project the Sabeer Bhatia group also mulled over roping in a foreign investor for the project. But as per information available the deal has not materialised yet. Also in July 2008 the promoters of nano city had offloaded 38 per cent equity stake to Parsvnath Developers that had planned to invest Rs 400 crore as equity and debt in the project, the report added.

Tagged as: delhi, noida, promoters, property prices, real estate, the-project

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Mumbai-Based Hospitality Chain Pride Hotels Plans Expansion

by Paul Joseph August 10, 2010

Mumbai-based hospitality company The Pride Hotels will invest Rs 1,000 crore in the next five years to open ten new properties across India and expand existing ones. The company, which has around 1,000 rooms in its ten properties at present, will have total of around 3,000 rooms when its planned expansion is completed. It is expecting revenues from the hospitality business to touch Rs 300 crore in the next five years from the current Rs 100 crore. “By 2015, we will have ten more properties nationwide, including business hotels, resorts and luxury hotels,” said S P Jain, chairman, The Pride Hotels. The group will invest Rs 1,000 crore in the next five years, of which Rs 150 crore investment has already been made, Jain added. Of the new properties, some will be owned and managed by the company, while some will only be managed by the firm. “Of the ten new properties, three would be resorts and the remaining would be a mix if business and luxury hotels,” he said. Meanwhile, the company announced opening of its tenth property in the commercial hub-Gurgaon. At present the firm has properties at Pune, Nagpur, Chennai, Bangalore, Jaipur and Delhi. The Pride Hotels is promoted by SP Group, which also has other businesses such as consultancy, financial services and construction, and has an annual turnover of Rs 300 crore. The hospitality division contributes about Rs 100 crore to the group’s total turnover at present. The group opened its first hotel in Pune, way back in 1988, but the actual expansion started from 1999, after the promoters of the group decided to focus on the hospitality sector. “In the next five years we expect the Group’s turnover to be Rs 500 crore, of which Rs 300 will come from hotels,” Jain added.

Tagged as: firm, group, hotel industry in india, india, mumbai, promoters, real estate, real estate companies, real estate developers, real estate india, real estate trends

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Certain Regulation of the Proposed Real Estate Bill can Hit Project and Buyers – Realtors Claim

by Paul Joseph July 23, 2010

Even as the real estate sector has welcomed the proposed Model Real Estate (Regulation of Development) Bill, developers feel some of the provisions in the Bill, such as the five-percent bank guarantee on project cost, several new advances and reserve funds, will not only block the capital of the developers but also limit the project size. They also claim multiplicity of procedures in the Bill will further delay the project timing up to six months. The Bill provides strict monitoring of timelines during the execution of the projects putting various penal implications on the promoters. “One of the prime objectives of the Bill is to remove malpractices and fly-by-night developers. “However, there are certain provisions proposed which may defeat the very purpose for which the Act has been proposed,” Rohtash Goel, chairman and managing director, Omaxe Ltd, said. On Friday, the Confederation of Real Estate Developers’ Associations of India (Credai) had said the Bill in its current form would make homes costly for buyers by Rs 300 per sq. ft. “The proposed model real estate regulation is a welcome step on the part of government. However, there are many provisions in the bill which will add to the housing cost,” Kumar Gera, president, Credai, the apex body of realty developers in India, said. According to Goel, “The proposed act in its present form will add costs and delays to the lifecycle of the project. In our opinion simplifying the approval procedures, facilitation, regulation, control and growth of real estate development and safeguarding interest of all stakeholders should be its objectives.” Credai has suggested that there should be collaboration and proper accountability of all concerned authorities so that the complete transaction is efficient and transparent. Apart from that, the Bill has no provisions to control errant buyers and it does not speak about the accountability of local authorities that causes unnecessary delays, said the apex body of realty developers. “Ultimately, it is the end-users who would be affected as we will pass on the cost escalation to the buyers,” Gera said. “The government has already burdened the buyers with the service tax and increase in the circle rate and on the top of that this new Bill is set to make housing unaffordable for the end-users. Also the affordable housing segment will be the worst hit,” he added. The Bill provides strict monitoring of timelines during the execution of the projects putting various penal implications on the promoters. But developers feel that it has nowhere taken into account the time taken by the government agencies in clearing the projects. According to Ashwani Prakash, executive director, Paramount Group, “This regulatory Bill provides validity for three years for the licence to be issued by the regulator, whereas the government agencies as mentioned earlier take 18 to 24 months in clearing various approvals. More so when different states have different criteria for clearing projects and granting licensees, such type of sections within the Bill are to be diluted.” Developers have already submitted its paper to the ministry for housing and urban poverty alleviation on cost impact of major provisions in the proposed Bill. It has also requested the ministry to modify certain portions of the Bill, which will help buyers and developers. Source: http://www.indianrealtynews.com Filed under: Legal questions Tagged: Real estate in india

Tagged as: developers, development, government, housing, india, legal-questions, ministry, opinion, project, promoters, real estate

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Certain Regulation of the Proposed Real Estate Bill can Hit Project and Buyers- Realtors Claim

by Paul Joseph July 20, 2010

Even as the real estate sector has welcomed the proposed Model Real Estate (Regulation of Development) Bill, developers feel some of the provisions in the Bill, such as the five-per-cent bank guarantee on project cost, several new advances and reserve funds, will not only block the capital of the developers but also limit the project size. They also claim multiplicity of procedures in the Bill will further delay the project timing up to six months. The Bill provides strict monitoring of timelines during the execution of the projects putting various penal implications on the promoters. “One of the prime objectives of the Bill is to remove malpractices and fly-by-night developers. “However, there are certain provisions proposed which may defeat the very purpose for which the Act has been proposed,” Rohtash Goel, chairman and managing director, Omaxe Ltd, said. On Friday, the Confederation of Real Estate Developers’ Associations of India (Credai) had said the Bill in its current form would make homes costly for buyers by Rs 300 per sq. ft. “The proposed model real estate regulation is a welcome step on the part of government. However, there are many provisions in the bill which will add to the housing cost,” Kumar Gera, president, Credai, the apex body of realty developers in India, said. According to Goel, “The proposed act in its present form will add costs and delays to the lifecycle of the project. In our opinion simplifying the approval procedures, facilitation, regulation, control and growth of real estate development and safeguarding interest of all stakeholders should be its objectives.” Credai has suggested that there should be collaboration and proper accountability of all concerned authorities so that the complete transaction is efficient and transparent. Apart from that, the Bill has no provisions to control errant buyers and it does not speak about the accountability of local authorities that causes unnecessary delays, said the apex body of realty developers. “Ultimately, it is the end- users who would be affected as we will pass on the cost escalation to the buyers,” Gera said. “The government has already burdened the buyers with the service tax and increase in the circle rate and on the top of that this new Bill is set to make housing unaffordable for the end-users. Also the affordable housing segment will be the worst hit,” he added. The Bill provides strict monitoring of timelines during the execution of the projects putting various penal implications on the promoters. But developers feel that it has nowhere taken into account the time taken by the government agencies in clearing the projects. According to Ashwani Prakash, executive director, Paramount Group, “This regulatory Bill provides validity for three years for the licence to be issued by the regulator, whereas the government agencies as mentioned earlier take 18 to 24 months in clearing various approvals. More so when different states have different criteria for clearing projects and granting licensees, such type of sections within the Bill are to be diluted.” Developers have already submitted its paper to the ministry for housing and urban poverty alleviation on cost impact of major provisions in the proposed Bill. It has also requested the ministry to modify certain portions of the Bill, which will help buyers and developers.

Tagged as: confederation, development, india, opinion, projects, promoters, proposed, real estate, real estate companies, real estate developers, real estate trends

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Nitesh Estates Awarded with Bangalore Residential Project

by Paul Joseph July 14, 2010

Nitesh Estates, the Bangalore-based realtor, has won the bid to develop a 1.5 lakh square feet residential project in Aga Abbas Ali Road, close to MG Road, in Bangalore. Nitesh Shetty, managing director of the company, confirmed the development and said, “The project would add approximately Rs 35 crore to the company’s bottomline.” The developer would hold 45 per cent stake in the project, which it expects to sell for Rs 20,000 per sq ft. It is also looking for another development of 3 lakh sq ft, which would add Rs 65 crore to the net profit next year, according to a report published in DNA. “We have already launched two projects this year and we will launch another eight. We have sold 330 units and expect to reach our target of 1,000 flats this year. We are expecting a net profit of Rs 175-200 crore through the sales,” Shetty was quoted as saying. The construction on the two properties has just begun. The Street is also abuzz with the news that Nitesh Estates is hiking its stake in its hotel project in Bangalore — the first Ritz Carlton property in India. It has 26 per cent stake in the project and the rest 74 per cent is owned by Citigroup Property Investors, which is being bought by Apollo Management. In about 90 days, executives from Apollo are expected to take over. The construction cost of the Ritz Carlton project is close to Rs 700 crore and the property is expected to come up by late 2011. Shetty denied increasing his stake in the hotel property, but sources said that the promoters are looking at raising 10-15 per cent stake in the project as it makes sense going forward. Nitesh is looking at selling around 80-85 per cent of its Kochi property and the project will have investment of around Rs 400-800 crore. The company will sign the deal with an Indian operator by the end of the month, a source said.

Tagged as: bangalore, bangalore-based, development, hotel, indian, nitesh-estates, project, promoters, property prices, real estate, real estate developers, real estate india, street, the-project

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Govt to Implement Kochi IT Project

by Paul Joseph May 19, 2010

Kerala chief minister V S Achuthanandan said his government will implement the Smart City IT project in Kochi if its promoters, Smart City Dubai, do not do so. “They are having financial problems but they are not admitting that. Anyway we have decided to give a bit more time to them. And if they do not come forward, then we are committed to take forward the project,” he told reporters on the fourth anniversary of his government. The chief minister had laid the foundation stone for the Rs 1,500 crore Smart City Kochi project just before the first anniversary of his government. Since then, there has been no progress in the project as the two sides are at loggerheads over freehold rights for the developer over 12 per cent of the land allotted to the project. Smart City Dubai wants the government to stick to the agreement providing 12 per cent freehold rights (around 30 acres of land out of the 246 acres). The government is adamant it will not allow any real estate dealings on the land. Fisheries minister and chairman of Smart City Kochi S Sarma said if the promoters were expecting to do real estate business then they were mistaken. “The delay in going ahead with the project is baffling and there is suspicion they are purposely delaying. This endless wait is not going to be accepted,” said Sarma.

Tagged as: chennai, chief-minister, dubai, government, project, promoters, real estate, real estate india

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Hotel Leela to develop five more luxury hotels by 2014

by Paul Joseph January 18, 2010

Hospitality major Hotel Leela Venture will own, develop and operate five more luxury hotels with a total project cost of over Rs 3,000 crore by 2014. The investment for this expansion is a mix of debt and equity. “We will be opening five new luxury hotels called ‘Leela Palace’ with a total of 1,300 rooms in next 3-4 years. Out of these five hotels two hotels will be operational by next year,” said Vivek Nair, vice chairman and managing director, Leela Venture. The Leela Venture has already spent Rs 1,400 crore for the same, Nair added. The venture is also opening up two new hotels in New Delhi and Chennai with an investment of Rs 300 crore each. The hotel in New Delhi will be operational by September this year, while Chennai will start from early next year, said Nair. The Leela Palaces, Hotels and Resorts, which is an expanding chain is one of the finest five star luxury resorts and business hotels in India, is also planning to open up three more luxury hotels in Agra, Hyderabad and Pune by 2014. “We have already acquired land for Rs 150 crore in three cities and total project cost for developments will be around Rs 800 crore. The development work for this project will start from next year onwards,” said Nair. The company bought back foreign currency convertible bonds worth $25-million due for maturity in 2012 impending to increase the promoters shareholding from current 52 per cent to 53 per cent by March 2011, Nair added. Source : http://www.realtyplusmag.com/rpnewsletter/fullstory.asp?news_id=6864&cat_id=1 Posted in Builders/ Developers, Chennai, Delhi, Hotels/ resorts, Hyderabad, New projects, Pune Tagged: Agra, Chennai, Hotel Leela Venture, hotels, Hyderabad, New Delhi, pune

Tagged as: builders/ developers, chennai, hotel, hotels/ resorts, hyderabad, project, promoters

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