the-development

Poor Infrastructure, Transport and Lack of Affordable Housing Hamper Navi Mumbai’s Growth Prospects

by Paul Joseph May 23, 2011

Navi Mumbai is not beaming in its 40th year. Lack of affordable housing, poor transport, growing slum population and encroachment, pollution, and slow infrastructure development are hampering its prospects. The state government’s recent white paper on the socio-economic progress of Navi Mumbai says: “Lack of efficient, dependable and speedy public transport linking Mumbai and other cities could be a major impediment in the development of Navi Mumbai.” The white paper, Repositioning Navi Mumbai as an Economic Growth Engine, has been prepared by experts constituted by the Maharashtra Economic Development Council (MEDC). It shows that in the last 15 years, affordable housing stock took a dip against costly private housing stock. Today, while there are 122,000 Cidco-constructed houses, there are 218,000 houses which were developed by the private sector. “Had there been enough low-cost housing by Cidco, real estate prices in the city would have been sufficiently under control for (the benefit of) the common man,” a senior town planner said. “Since Cidco is not taking up enough housing schemes, a nexus of private builders and politicians is exploiting the people. Some people have given up the idea of settling in Navi Mumbai due to skyrocketing real estate prices.” The paper says the main objective behind creating Navi Mumbai was to absorb Mumbai’s immigrants and also to decongest the state capital. “But public transport, whether the railways or buses, and housing facilities have not kept pace with demand,” the town planner said. The paper says: “Extremely lengthy land acquisition procedure and a time-consuming legal framework, and a lack of initiative to involve local village populations—which has lead to disputes and agitations regarding compensation—have caused delays, cost overruns and social strife.” The solution to Navi Mumbai’s woes, the paper suggests, lies in a long-term, comprehensive strategy to achieve affordable housing, speedy transport modes like the Nhava-Sewri trans-harbour link, and the development of the proposed airport, the metro rail, and of water and bus transport.

Tagged as: cities, city, development, enough-low-cost, legal-framework, like-the-nhava, maharashtra, mumbai, people, repositioning, says-the-main, since-cidco, the-development

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Kolkata Based Developer ‘Eden Group’ Plans 7-8 New Projects at an Investment of Rs 250cr

by Paul Joseph May 5, 2011 Uncategorized

Eden Group, one of the leading real estate developers from Kolkata, is planning to launch 7-8 new projects within the next one year with a total developable area of over 1 million square feet. All these projects will be launched in and around Kolkata with a total investment of Rs 250 crore, including the land cost. The funds will be raised through internal accruals only. The new developments will be a mix of residential and retail. At least two projects will be launched every quarter, with the first project coming up in June. In all, the group is planning to develop 1,000 units in the next one year. Talking about the Group’s growth plans, Krishna Modi, director – marketing & legal, Eden Group, informed, “In a span of one year, we plan to launch at least 7-8 projects in and around Kolkata. Of this at least 95 per cent of the development will be residential, while the remaining will be retail. The overall estimated cost of investment will be to the tune of Rs 250 crore, which will be raised through internal accruals only since we are a completely debt-free company.” The new projects will mainly cater to the affordable segment in the price range between Rs 15-30 lakh. “Most of our residential projects will comprise units in the affordable segment, priced between Rs 15-30 lakh. About 90 per cent of our projects will be in this price range while remaining will be in the upper price segment, which is yet to be decided,” Modi added. The Group has about 23 projects under construction with a total of 1.5-2 million sq ft of developable area. Total value of these projects is estimated at Rs 300 crore. Eden Group currently has a land bank of almost 100 acres in and around Kolkata and Asansol. It is also in the process of getting the plan sanctioned in Asansol, which will take another two years. The company clocked in a turnover of Rs 150 crore in last fiscal, while they are expecting a growth of almost 50 per cent in the new fiscal. Moreover, in their tea business the company “is looking to increase production since the tea market is growing very favourably,” added Modi.

Tagged as: affordable, development, kolkata, price, raised-through, real estate developers, residential, the-affordable, the-development

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Adani Realty to Invest Rs5000cr in Upcoming Township Project at Ahmedabad

by Paul Joseph April 30, 2011 Uncategorized

Adani Realty Business, the real estate arm of the Adani Group, plans to invest Rs5,000 crore in the group’s upcoming township in Ahmedabad. The total investment is expected to be sale-revenue funded, without any debt. The group is developing a 600 acre township named Shantigram in Ahmedabad in a phased manner. Out of the Rs5,000 crore investment, more than Rs3,000 crore is the value of the land, which is owned by the Adani family. The payment for this land, which has been transferred to a new wholly owned special purpose vehicle (SPV), will be made in a staggered manner over the next three to four years. The remaining Rs2,000 crore is the development cost, of which more than Rs700 crore has already been infused. The company is confident to funding the project as well as paying the total land value through sale-revenue generated over a period of time. The Phase I of the project, which has already started, will be completed by August 2014. This includes two housing units, of which one will be in the middle segment and the other in the luxury space. The company has already sold 1,000 apartments in the mid-segment after a soft launch in November. In Phase I, the flats are priced between Rs32 lakh to Rs2.5 crore each. The project will include a total development of 40 million sq ft, of which 2.8 million sq ft will be constructed in the ongoing fiscal. The township will include residential, commercial, hospitality, healthcare, and entertainment facilities. “Nearly Rs600 crore worth of apartments have already been sold and it is expected that before the end of this financial year another 2,000 apartments/villas will be sold, which will generate additional sales revenue of about Rs1,200 crore,” a company spokesperson said.

Tagged as: adani, adani-group, adani-realty, already-started, development, financial, nearly-rs600, project, purpose-vehicle, real estate, real estate developers, real estate india, the-development, the-mid-segment, well-as-paying

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DLF’s Chennai Mall-Cum-Multiplex Project in Trouble

by Paul Joseph December 15, 2010 Uncategorized

DLF has hit a roadblock yet again in its plans to develop a mall-cum-multiplex in Chennai. The company had entered into an agreement with Madras Race Club (MRC) on December 20, 2006 to take over 5.56 acre on a 66-year lease to promote a mall-cum-multiplex in Velachery, south of Chennai. DLF, which outclassed several other bidders including Unitech, Taj GVK and Rahejas among others to bag the deal, had at that time agreed to pay an interest-free deposit of Rs 60 crore for lease period and Rs 3 crore per month as lease rental from the time of signing the deal. Even almost after four years, the project is yet to take off. “The company was regularly paying the lease rental over these years. But, it has stopped doing so over the past six months,” a person privy to the development was quoted as saying in Financial Chronicle. According to him, with a couple of malls already under construction in that region, DLF thought it would not be feasible to develop another mall. “Hence, it wanted MRC to sell the land, since it had the first right of refusal. However, MRC authorities insisted that DLF develop the mall,” he said. Soon after, DLF stopped paying the lease rentals. MRC is reportedly contemplating a legal recourse. “Things have changed a little in that market. But, we are in talks with them,” said Rajeev Talwar, group executive director, DLF.

Tagged as: chennai, development, over-the-past, property prices, rajeev-talwar, real estate developers, the-development

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New SEZs on Acceleration Path to Meet DTC Deadline-ASSOCHAM

by Paul Joseph September 24, 2010 Uncategorized

The deadline of March, 2014, under the proposed Direct Taxes Code (DTC) for making new special economic zone units operational if they are to get tax benefits is likely to speed up development of these SEZs by entrepreneurs, a report said. “In order to meet the time lines proposed in the Direct Taxes Code, developers and investors are likely to fast track the development of SEZs to meet the unit operational deadline of March, 2014,” a report by industry chamber Assocham said. The DTC Bill, which was tabled in Parliament in August, proposed that units in SEZs that commence commercial operations by March, 2014, shall be allowed profit-linked deductions permitted under the Income Tax Act, 1961. It also proposed that SEZs notified on or before March 31, 2012, will get income tax benefits. With SEZs attracting investments of over Rs 1.66 lakh crore, industry sources said the income tax benefit provided in the SEZ Act, 2005, is the major attraction for investors. Assocham further said that demand for offices in the SEZs is expected to be low in the next 3-6 months, as occupiers are likely to rework their real estate strategies in the wake of the new time lines proposed in the DTC. The report said that while non-extension of profit-based tax incentives to new SEZs is a definite “setback” to the overall SEZ scheme, it is a step forward towards rationalisation prior to introduction of a consistent tax policy. “The real estate market in India is likely to adjust to the changing circumstances once DTC comes into force and then see a sustained demand momentum until 2014 from developers as well as occupiers,” the report said. The government has given formal approval for setting up about 580 SEZs, of which 122 have become operational.

Tagged as: delhi, development, income, real estate, the-development

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TCIL Plans Exit from Real Estate Business

by Paul Joseph August 31, 2010 Uncategorized

Transport Corporation of India (TCIL) will demerge its real estate and warehousing divisions in next three months and expects to create greater value for shareholders through the hive-off. After the demerger, the company would focus on the core activity of providing logistic services, according to a report published in Financial Express. “Our board approved the demerger in April this year while shareholders have just given their nod to the proposal. The matter is with the Andhra Pradesh High Court at present. We are expecting a green signal in next 2-3 months,” (TCIL) executive director Vineet Agarwal, said. “The logic in the demerger is that we want to create value for shareholders by focusing on our core activity. The development of real estate and warehouses will be done by the new company,” he added. The company has 15 real estate properties with a book value of Rs 55 crore. It has engaged a slew of consultants to ascertain the best use and market value of the properties. “Some of these properties may be developed as commercial real estate,” Agarwal said. As per the demerger scheme, a holder of 20 shares of Rs 2 each in TCIL will receive one share of Rs 10 in the new company. The earning per share (EPS) of the company was Rs 5.9 at the end of March 2010 against Rs 3.9 a year ago. TCIL aims to take it to Rs 8 by the end of 2011-12. Agarwal said his company is also exploring the possibilities of setting up multimodal logistics parks along the dedicated freight corridor being developed by Dedicated Freight Corridor Corporation of India (DFCCIL). DFCCIL has planned four such zones in Haryana and Gujarat in public-private partnership mode. DFCCIL will provide only land for the zones while the development investment will have to be put in by partner companies.

Tagged as: development, properties, real estate, real estate developers, the-development

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Quality of Life of chandigarh property

by Paul Joseph August 26, 2010 Uncategorized

Many expansions have conveyed Chandigarh property on India real estate’s retail diagram. In the midst of this, the real estate prices for commercial breaks have moreover rambled. Real estate dealer PS Kang cites it like a constructive maturity. “The introduction of this mall customs has involved numerous commercial purchasers. More or less every retail product has its existence in Chandigarh real estate or is in the development method in Chandigarh. And this concern the real estate prices straight and is superior for the souk. This generates a burly stipulate in the bazaar. Nowadays 2 acre of commercial terra firma in the Industrial vicinity is being sold for Rs 1.5 crore. It appears like an undue transaction but this is what commercial properties are eye-catching in Chandigarh. The district of Chandigarh properties presents a milieu favourable to families on top of pairs or lone. Tenants are near to bigger metro locales among all the services of a community. Citizens stirring to fresh vicinity classically search for excellence schools and reasonably priced housing in Chandigarh real estate. Panchkula has equally. The school area is extremely rated. A profusion of parks and other open-air activity sites also survive. Family circles in Panchkula in Chandigarh get a middle income which evaluated to the state center profits. The redundancy stage in Chandigarh is immobile growing at 12.3%. The offense price is miniscule evaluated to the Chandigarh average. The quantities for education, residential, and extra major regions combine to a first-class superiority of existence in Panchkula. If buyers are searching for a rock-hard property investment , it doesn’t acquire more solid than Chandigarh properties in India.

Tagged as: chandigarh, chandigarh property, chandigarh real estate, development, estate-prices, india, industrial, real, real estate, the-development

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Increase in the FSI of the class ‘C’ cessed buildings of Mumbai

by Paul Joseph July 20, 2010

The cessed buildings of class ‘c’ in Mumbai that are constructed after 1960 would soon get the FSI of 2.5%. Over 1,270 such buildings would get the advantage of the added FSI where the earlier limit was of 1.33%. Most of these buildings are deteriorated and are in the need of a complete makeover. The state government has decided to include these buildings in 33(7) scheme. The state government shall make the necessary amendments in the MHADA act as well as in the development control rules. Earlier only class ‘A’ category buildings were entitled to have the advantage of 2.55% FSI. Source : http://www.accommodationtimes.com/real-estate-news/increase-in-the-fsi-of-the-class-%e2%80%98c%e2%80%99-cessed-buildings/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+AccommodationTimes+%28Accommodation+Times%29 Filed under: Mumbai Tagged: FSI , Mumbai

Tagged as: city-trends, development, fsi, mumbai, the-development

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Hirco hands over flats at Palace Gardens, Chennai

by Paul Joseph June 15, 2010

Hirco Developments, which launched a large residential township project, Palace Gardens, couple of years ago during the realty boom at Oragadam near Chennai, handed over the first set of residential apartments last week. Palace Gardens is among Chennai’s largest township projects and will have 10,000 apartment units, when fully completed over multiple phases. However, in the first phase, it took up the development of only 928 apartments for construction across two towers of 15 floors, six towers of 27 floors, and 11 low-rise buildings (ground plus three floors). The project, planned as a self-contained township will have accompanying physical and social infrastructure that includes offices, schools, retail, healthcare and recreational facilities. The company is also providing infrastructure facilities such as road, water treatment plants, power back-up and waste management in the project. The price of apartments at Palace Gardens, which started at Rs 2,400 per sq ft for the ground floor, has now edged up to Rs 3,600 per sq ft. However, buyers have to shell out an additional Rs 25 per sq ft for every floor they move up. According to V Suresh, principal executive officer of Hirco Developments, Palace Gardens is being developed over 369 acres. The township is located in the fastest growing business corridor in the Chennai region. “While the 15-floor towers will be completed by March, 2011 and the 27-floor towers by the end of that year, we have now started delivering the apartments that have come up in the low-rise buildings. This will continue to be delivered every month on a regular basis,” Suresh said. The township will have an exclusive club facility called Palace Club that is coming up over 1.83 lakh sq ft and will have almost all the sports and recreation facilities. In addition, the company is developing entertainment space over 14 acres.

Tagged as: apartments, being-developed, chennai, project, property prices, real estate, real estate india, the-development

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Bangalore Based Realty Player Targets Rs 5,000 crore biz by 2015

by Paul Joseph May 14, 2010

Bangalore-based realty player Nitesh Estates, which listed its shares on the bourses on Thursday, expects to clock in nearly Rs 5,000 crore by end-2015 on the back of a strong pipeline of residential and commercial projects. “We target a total revenue of Rs 4,000-5,000 crore within the next four to five years,” Nitesh Estates managing director Nitesh Shetty told reporters after the firm’s listing ceremony. Presently, Nitesh Estates has almost 20 projects in the pipeline with a total size of 19 million square feet. It plans to diversify operations into development of shopping malls and will expand to cities like Chennai, Goa and Hyderabad, he said. The company, which listed over 14.58 crore shares on the BSE and NSE to raise around Rs 405 crore, has set its focus on segments such as office buildings, residential, hotels and other retail projects in South India, Shetty added. In FY11, the company hopes to achieve a revenue of Rs 200 crore. Last fiscal, its revenue stood at Rs 95 crore. Shares of Nitesh Estates listed with a discount of 7.40 per cent against its issue price at Rs 50 on the Bombay Stock Exchange (BSE). Shares of Nitesh Estates after opening weak on the BSE fell 10.55 per cent to a low of Rs 48.30. On the National Stock Exchange (NSE), the stock opened at the issue price of Rs 54, but later fell to a low of Rs 49.10, down nine per cent. “The issue proceeds will be utilised to fund existing subsidiaries and the associate company for repayment of loans, redemption of debentures and for general corporate purposes,” Shetty said. The company’s total debt currently stands at Rs 180 crore. Incorporated in 2004, Nitesh Estates is primarily engaged in the development of residential projects in Bangalore.

Tagged as: bombay, national-stock, nitesh-estates, property prices, real estate india, retail, south-india, the-development

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