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Real Estate India - Online Real Estate - buy sell rent commercial residential properties in India - Zameen-Zaidad.com
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CORPORATE NEWS |
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On the Growth Curve |
With favourable government policies, Bhiwadi Industrial Area has graduated to become one of the most promising regions in the entire Delhi NCR |
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The industrial town of Bhiwadi has established itself as one of the fastest growing cities of the National Capital Region (NCR). In an exclusive interview, Ashok Gehlot, Rajasthan Chief Minister, said:
"The immense industrial growth has catapulted Bhiwadi into being the third largest industrial hub of the country. Several major industries are sprawled all over the region along with a continuous flow of new players in the market." A lucrative destination, Bhiwadi is developing rapidly with the implementation of neo-modernized townships, residential complexes, IT hubs and corporate houses. The industrial expanse of Bhiwadi currently occupies 10,000 acres of land. The key industries are automobiles, pharmaceuticals, electrical appliances, industrial cables, garments, beverages, etc.
Saint Gobain Ltd (SGL), the largest glass manufacturer in the world, has acquired stake in Norton at Bhiwadi, to become the biggest giant in the production of high class automotive glass products and reflective glass for buildings. SGL claims to be the sole producer of colored lacquered glass in India. It is setting up its new plant at Bhiwadi with an investment of Rs.1,000 crore and would be called 'New Glass Complex' with a capacity to produce 3,00,000 tonnes of float glass.
The CM says, "Bhiwadi, Behror and Neemrana region is in a for a real new revolutionary deal now when the region has been put on the proposed 'Gas Grid' and Delhi Mumbai Industrial Corridor has facilitated development of multimodal logistic parks at Neemrana-Bhiwadi region in PPP mode.
A central spine centre project connecting Global City with Bhiwadi-Tapukra Complex is envisaged. RIICO is simultaneously developing a 'Special Investment Region' (SIR) near Bhiwadi, next door to the Shahjhanpur-Neemrana-Behror (SNB) Knowledge City. This SIR is expected to house one million people. And to promote setting up of a new integrated township with housing and allied civic basics would be developed at Bhiwadi."
According to Gurdial Singh Sandhu, principal secretary to government of Rajasthan and Chairman of the Rajasthan Real Estate Development Council (Rajredcon), "Bhiwadi today witnesses a brisk residential, industrial and commercial activity. It is in close proximity to Delhi with more than 5,000 operational industries. With the industry flourishing in places like Manesar and Gurgaon, Bhiwadi proves to be a good residential habitat. Naturally, therefore, Bhiwadi has come to be developed by the Rajasthan State Industrial Investment Corporation (RIICO)."
Adds Ashutosh A.T. Pednekar, Collector, Alwar and chairman of the Urban Improvement Trust (UIT), Bhiwadi, "With huge industrial growth in the area in and around, Bhiwadi has become a major residential destination for the staff and the workforce of the industries in Bawal and Manesar.
Says Deepak Nandi, "This industrial township has established itself as one of the fastest growing urban hubs of India, next to Dharuhera on NH'8' . Its proximity to Delhi and Gurgaon-Manesar -Urban Complex (GMUC) has earned to it the prestigious tag of a 'Regional Centre of the NCR - a preferred residential suburb for the workforce of MNCs and industrial houses in GMUC, Bawal and Dharuhera. With all the civic basics of a modern city, Bhiwadi is increasingly becoming a premium and well managed place offering all the conveniences required for comfortable and affordable living."
Courtesy – Economic Times – Dt:- 19-04-2011
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Office to Home, Realty Touches Sky in Mumbai, Bangalore |
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Mumbai: In what is touted as the largest commercial transaction of 2010 in Mumbai suburbs, a brand new office building at Kalina has been sold for Rs 407 crore. Market sources said the deal was signed sometime last week.
The buyer, Edelweiss Broking Ltd, is believed to have paid around Rs 20,000 per sq foot for over two lakh sq ft space in the 14-storey building, Lotus Midtown, located outside the Bandra-Kurla Complex. The building has been constructed by Anand Pandit of the Lotus Group.
A real estate analyst said demand for commercial properties was once again picking up. However, he said it is mainly coming from Indian companies rather than multinationals as was the case earlier.
Last February, a four-storey commercial building at Worli was sold for Rs 640 crore, one of the costliest of its kind in the country. The Wadia Group sold its property to Axis Bank, which is planning to shift its headquarters to the building. The building, Wadia Tower A, located on Bombay Dyeing Mill compound on Pandurang Budhakar Road, has a saleable area of over 4 lakh square feet. It worked out to Rs 16,000 per sq. foot.
Mallya’s luxury flats to be priced at Rs 20 Cr
It’s official now. Liquor and aviation baron Vijay Mallya is uncorking a Rs 1,500 crore-luxury residential play in the heart of Bangalore on Vittal Mallya Road, along with Prestige Estates. This could well be the most expensive residential project to be sold in Bangalore’s real estate history, as the asking rate per sq ft is pegged at a whopping Rs 33,000. Mallya plans to develop 75 apartments over 5- lakh sq. ft.
Mallya is razing down his ancestral home spread across approximately 4 acres of land and is situated adjacent to the UB City to construct a 31 storey high -rise super luxury residential building likely ot be called ‘Residences at UB City’. TOI though has learnt that the project would have 75 super luxury apartments of 6,000 sq ft to 7,000 sq ft in size sporting price tags anywhere between Rs 15 crore and Rs 20 crore apiece.
What is now known is that as part of the project, Mallya is building a 70,000 sq ft to 80,000 sq ft penthouse for himself, which will be the only home in Bangalore to have a bird’s eye view of Cubbon Park, MG Road, Vidhana Soudha, and the entire central business of the city. Also, at 31 storeys high, it could well be the only house in Bangalore that can boast of reaching to the stars. Once upon a time, the land, on which UB City and Mallya’s house are situated, comprised a brewery, belonging to the UB Group. TOI was the first to break the story on July 11, 2008.
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Bull and Bears |
Among major sectors Real Estate is also continuing to perform well on sensex and nifty from early 2004 and also builder are selling new projects on the name of affordable housing insubrubs of metro cities, tier I and tier II cities but from last two months seeing slow on sensex and nifty but selling of project is good
Big real estate company showed better results in last quarter in respect of last year same quarter and loss also picked up money from private equity players through. QIP (Qualified Institutional Placement) and reduced their debts.
Private Equity Players also learned handsome amounts. In case of Unitech, India’s second real estate company by market capitalization was placed its share with ---@ 40 in last year and this time is stable with @ to plus with high Rs 95+ in Dec 2009 from low Rs 25-40 in Mar 2009
On the operational front for the Dec 2009 quarter, the company has been able to record revenue growth of 76% year on year to Rs 774 crore largely on sales which have occurred in the previous fiscal
The company is focusing on affordable homes and expects the segments contribute about half of the overall volumes in 2010-11 about 16 million sq. ft and also focusing on Mumbai were It has tied up with Mumbai-based developers for slum rehabitation projects and expecting to will sell 40 millon sq. ft area. The company is now standing on a debt of Rs 6200 cr. I.e. debt to equity ratio is 0.3 times
The company also hived off its non-core businesses like power, telecom, hotels and SEZ’s to improve sentiments towards the stocks |
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| DLF completes Caraf merger with arm, gets ready for DAL listing |
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DLF Assets Likely to Be Listed On Singapore Stock Exchange In Q1 Of 2010-11
DLF has completed the merger of Caraf Builders and Construction, which owns investment trust DLF Assets Ltd (DAL), with another offshoot DLF Cyber City, a move India’s biggest realtor says is logical to listing DAL on the Singapore Stock Exchange (SGX).
A company spokesman confirmed the development while two senior executives involved in the listing process said DAL, set up to acquire properties from DLF and other developers for leasing out to third parties, is likely to be listed on SGX in the first quarter of 2010-11
Though DAL’s listing was not dependent on the merger, it was important that the integration with Cyber City, a wholly-owned subsidiary, was completed before the listing as the move is also aimed at further streamlining all commercial assets under one head, said the first executive on condition of anonymity.
Under SGX norms, a company planning to list cannot reveal listing plans before its draft prospectus is approved. Merging DAL, which buys and manages commercial assets on the lines of real estate investment trusts, with Cyber City will ring-fence DLF from the uncertainties of the property market as it guarantees a steady stream of revenues, said the second executive. DLF acquired Caraf from promoters KP Singh and family last December in a share swap deal and decided to give it a 40% stake in its Cyber City. By consolidating the group’s rental assets, that transaction too was aimed at ensuring a steady cash flow.
The rental business of DLF and Caraf together generated annual incomes of Rs 700 crore and Rs 550 crore in the current fiscal. Post-merger, the rental business is expected to give DLF an annual income of Rs 1,500 crore in 2010-11, which should be 20% of the total income, said the second executive. As the merger is effective from March 19, its effect will not reflected in the current financial year, he added.
Courtesy: ET – 22-03-2010 |
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NO TAXING TIME FOR REAL ESTATE: GOVT |
Says construction attracts service tax only on 33 per cent of the value.
The government today said the net impact of the service tax on real estate construction would be only 3.3 per cent, since construction attracts service tax only on 33 per cent of the value.
The government had last week clarified through the Budget that transactions such as leasing vacant land and commercial spaces, payment made to developers before the grant of completion certificate and imposing preferred location charges, among others, would come under the service tax net.
Developers said the proposal could push home prices up by 10 per cent in Tier-II and Tier-III towns and 0.5-4 per cent in big cities such as Mumbai and Delhi which have higher land prices. However, a senior finance ministry official here said the net impact of the service tax would be only 3.3 per cent, since there is an abatement of 67 per cent.
“There is a false impression being created that prices will go up by 10 per cent but the fact is that 10 per cent service tax is levied only on 33 per cent of the value,” said the official.
The budgetary clarification has been issued with retrospective effect from 2007, when real estate transactions were brought under service tax. Abatement scheme, under notification number 1/2006 dated March 1, 2006, says that the contractor is entitled to claim abatement to the extent of 67 per cent of the value of services rendered by him. In effect, the contractor would have to pay service tax only on 33 per cent of the value.
Stung by new service tax proposals on property transactions, real estate bodies such as the Confederation of Real Estate Developers Associations of India and Maharashtra Chamber of Housing and Industry plan to approach the finance ministry to seek rollback of some proposals.
Developers have already increased prices by 15-20 per cent in the last nine months as demand for homes picked up. This resulted in demand tapering in January and February.
Courtesy:- BS dt:- 04-March-2010 |
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SERVICE TAX MAY TAKE TOLL ON REALTY |
After many months in the dumps, the housing sector was finally sniffing at a recovery as buyers returned gradually, lured by sharp price cuts and teaser loans.
But a Budget proposal to levy service tax on houses under construction is threatening to crimp the sector’s fragile recovery as the resultant price hike is certain to dissuade fresh buyers. The proposal, a bolt from the blue, purported to spur builders into completing projects faster after rampant complaints of long delays.
Though that remains to be seen, an immediate effect will be the prices of incomplete houses rising by 3% after a service tax of 10.3%, including surcharge, is imposed. The levy is based on an earlier Income Tax Department circular, held up due to resistance from developers, which set 33% of the house price as services.
Housing project comprises land, raw material, labor and services. Though services include branding and selling of a project, there is an unwritten understanding that no ‘service’ was being provided till a developer passed a property title to a buyer.
Back-of the- envelope calculations show that an Rs 30-lakh housing property will see a price hike of at least Rs 1 lakh after the service tax is affected.
“Affordable housing will be impacted the worst,” said Niranjan Hiranandani, chairman of Mumbai-based developer Hiranandani Constructions, adding that everyone in that category must now pay developers in installments.
The Budget proposal, coming after the Reserve Bank of India’s incessant frowning on teaser loans, will wane demand further, say realty watchers.
Most houses are typically sold during construction with buyers paying in phases. The Budget proposal means that even buyers who have to pay, say, the remaining 5% of the overall cost during possession, will have to cough up more.
The proposal could also pose problems in calculating remaining payments though it will ratchet up demand for ready-to-move properties, say realty watchers.
As for developers, the market’s response to the proposal will determine their long-term plans. “Affordable housing will now become unaffordable,” said Rajeev Talwar, managing director of DLF, the country’s largest developer.
“Housing is a state subject and the move is impinging.”
Real estate was among the worst hit sectors in the global downturn as buyers kept away and banks became wary of lending. But teaser loans, some even as low as 8.25% much below their prime lending rate (PLR), last year stalled the decline.
But builders fear that the introduction of a service tax and absence of teaser loans will compound the problem of oversupply of residential and commercial properties in several parts of the country.
Courtesy:- ET dt:- 04-Mar-2010 |
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| FOREIGN DEBT STILL SEEPING INTO REALTY |
Foreign debt, banned in real estate, is finding its way into property firms as bankers and lawyers help builders cobble together new deals to raise money.
Even though foreign loans—better known as external commercial borrowings—are not permitted in construction, property firms have spotted a mechanism where the debt can be provided by foreign institutional investors (FIIs) registered with Sebi. No rules are broken and the deals, involving a three-way transaction, come across as normal private placements in the corporate bond market.
The process begins with a real estate company placing nonconvertible debentures (NCDs) with a local entity, such as a nonbanking finance company (NBFC). The next step involves listing the debt security, soon after which an FII steps in. Once the NCD is listed on a stock exchange, the NBFC offloads the paper to a foreign fund. Since FIIs cannot invest in unlisted debt, the NBFC warehouses the NCD till the paper is listed and then recovers the money by selling the debentures to a foreign fund.
The two transactions are part of a back-to-back deal struck between the firm issuing the NCD, the local NBFC and the FII. At least four developers—three from Mumbai and one from Bangalore—have risen over Rs 1,000 cr in the past few months through this route.
“It does not directly violate the Press Note on foreign investment in property, and such FII investment is within the overall corporate bond ceiling applicable to foreign funds... but it’s against the spirit of the regulation,” admitted a senior banker who has advised one such NCD issue.
Indeed, a few foreign banks have made presentations to property firms on the convenience of such fund-raising which has become more attractive since the government plugged a loophole on the foreign direct investment (FDI) regulations in the real estate sector.
Courtesy:- ET dt:- 04-Mar-2010 |
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| INVESTORS SPARED OF SPECIFIC NORMS |
In the past few years, FDI worth billions of dollars came in as overseas investors subscribed to equity and quasi-equity products — often with put options — sold by real estate firms which were starved of bank finance. But a chunk of this inflow was based on an interpretation that the three-year lock-in on the FDI applied only to the ‘original’ amount brought in and not the full quantum of FDI in a project. Many investors took advantage of this: an offshore fund which decided to put in, say, $25 million split the inflow, by first bringing in $5 million, the minimum amount, and then bringing in the balance $20 million subsequently. The understanding was that the lock-in applied only to $5 million and not $25 million. This flexibility in interpretation disappeared after the government clarified last year that the full amount, irrespective of whether the money comes in tranches, would be locked in for three years. The move, which came as a jolt to several foreign investors, paved the way for the more recent NCD route that’s catching on among local developers.
“There are advantages. First, there is no lock-in because the FII can sell the NCD as and when it wants. Second, the debt is secured against mortgage of assets, pledge of shares, etc. Third, unlike FDI, here the foreign investor can fund even those projects which are not FDI-compliant,” said a lawyer familiar with such debt-raising. For a project to receive foreign equity or FDI, it should not have less than 50,000 square meters of built-up area, among other things. “These conditions don’t come in the way when a foreign fund buys NCDs,” he said. Interestingly, such NCDs have also been issued by a leading NBFC which, like property firms, are restricted from tapping the ECB market.
According to a real estate fund manager, some foreign investors reluctant to increase their equity exposure post the downturn, prefer secured debts with a decent interest return. Sebi’s listing regulations extend to debentures that have been privately-placed; and, the NCDs can be listed even if the real estate company or a project specific special purpose vehicle floated by it is a private firm or an unlisted public entity.
Courtesy:- ET dt:- 04-Mar-2010 |
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| DLF CONVERTS MUMBAI MALL PROJECT INTO RESIDENTIAL ONE |
DLF, the country’s largest realtor by market value, is planning to build a premium residential apartment complex at Worli in Mumbai instead of a high-end mall project, as demand for retail spaces has come down sharply, according to a company executive.
“We felt residential will do well here, and we will fix the price depending on market conditions,” he said. According to DLF website, the project is under “planning and development” under the high-end mall brand Emporio.
Rents of retail spaces are down by 25-30 per cent from their peak in 2007-08 as demand slowed. Though demand for office spaces have picked up slowly, property consultants expect lukewarm demand to continue for retail developments.
Worli, which was a former hub of textile mills, is witnessing modern office developments by realtors such as Indiabulls, Bombay Dyeing and Century Textiles, and residential apartments command a price of Rs 22,000 per sq ft and above.
DLF made news in 2005 when it bought a 17-acre Mumbai Textile Mill land from National Textile Corporation (NTC) for Rs 702 crore. The company at that time announced it would build a futuristic retail-cum-entertainment complex on the land.
The new project is expected to be launched in the next four-five months after taking all the necessary approvals, the executive said.
According to property consultants, the company changed the plan several times as real estate market went through a prolonged slowdown.
However, DLF is not alone which converted its mall project into a residential one. Host of others such as DB Realty in Dahisar area of Mumbai, West Pioneer in Kalyan near Mumbai and TTK group in Bangalore also changed their plans to build mall to apartment projects.
Apartment prices have raised 15-20 per cent since mid-2009 as home buyers returned to the market. Earlier, prices had declined by around 40 per cent as home buyers stayed away.
Buoyed by response for its apartment projects, DLF is expected to launch 8-10 new residential projects in the next one year, according to sources. DLF, which stalled some of its office projects during the slowdown, is planning to launch two-three commercial projects in Gurgaon and Hyderabad.
DLF today sold 1,200 units of independent floors in its Panchkula Valley housing project in Chandigarh within a week of its launch.
The units were priced between Rs 30 lakh to Rs 60 lakh. The company is aid to have made around Rs 500 crore from the sale of units. The company originally planned to launch 500 units, but later increased it to 1200 due to good response, a release from the company said. The project was launched on Feb 18, 2010.
The company, which had plans to book these units in 45 days till March 31, 2010, closed bookings within seven days of launch as the bookings crossed 1200 units within 15 days.
Courtesy:- BS dt:- 26-feb-2010 |
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| US NEW HOME SALES FALL IN DEC FOR 2ND MONTH IN A ROW |
Sales of newly built US single-family homes fell unexpectedly in December, data showed on Wednesday, the latest indication that the government-led housing recovery might be losing some steam. The Commerce Department said sales fell 7.6% to a 342,000 unit annual rate from an upwardly revised 370,000 units in November. It was the second straight month that new home sales declined. US stock indexes fell on the data, while government bond prices held at higher levels.
“This isn’t good news. It should put some pressure on the market, especially coming after the disappointing outlooks we saw,” said Dan Cook, senior market analyst at IG Markets in Chicago. New home sales for the whole of 2009 fell 22.9% to a record low 374,000 units, the department said.
The data came as the Federal Reserve deliberated on monetary policy. The US central bank is expected to leave overnight lending rates near zero.
At its meeting in December, the Fed announced it would end purchases of agency mortgage-backed securities in March. The program has depressed mortgage rates, contributing to the housing market’s healing in recent months.
But the housing market recovery is showing some signs of fatigue after a surge in sales as first-time buyers rushed to take advantage of a popular tax credit, which had been scheduled to expire in November.
It has since been expanded and extended until June this year and while analysts expect home sales to pick up as a result, they reckon the pace will not be as strong as witnessed with the initial tax credit.
Courtesy:- ET dt:- 28-jan-2010 |
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| SOME FORMS OF DEEMED TENANCY |
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A tenant can continue holding possession even after the lease is determined
Deemed tenancy is a 'tenancy by holding over'. It is an implied tenancy. Under the Transfer of Property Act 1882, some circumstances lead to a tenancy by holding over.
When tenancy by holding over is created:
• The lessee or underlessee of the property remains in possession after the determination of the lease granted by the lessor
• The lessor or his legal representative either accepts rent from the lessee or underlessee, or otherwise assents to his continuing in possession
• There is no agreement to the contrary
The expression 'holding over' refers to retaining possession. There is a distinction between a tenant continuing in possession of a property after the determination of the lease, without the consent of the landlord, and a tenant doing so with the consent of the landlord. The former is called a tenant by sufferance. On the other hand, the latter is called a tenant holding over.
A lessee holding over with the consent of the lessor is in a better position than a mere tenant at will. The assent of the landlord to the continuance of the tenancy after the determination of the tenancy creates a new tenancy.
In such a case, the lease is renewed from year to year, or from month to month, according to the purpose for which the property is leased. For example, say A lets-out a house to B for three years. B underlets the house to C at a monthly rent of Rs 2,000. The three years expire, but C continues in possession of the house and pays the rent to A. So C's lease is renewed from month to month. Similarly, in case A lets his house to B for the life of C. If C dies, but B continues in possession with A's assent, then B's lease is renewed from year to year.
A statutory tenancy is distinct from a tenancy by holding over in the sense that the former is more specific. Most rent control acts recognize statutory tenancy - either expressly or by implication. In case a tenancy is given protection under a statute, it is called a statutory tenancy.
In case of a statutory tenancy, the rights of a tenant who retains possession by holding over is defined by the statute. All rent control acts recognize and afford protection to tenants against eviction despite termination of tenancy except on the grounds recognized by the acts.
Courtesy:- FT dt:- 29/11/2009 |
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| HOME LOAN RATES STABLE, SAY ANALYSTS |
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HOME LOAN RATES STABLE, SAY ANALYSTS
Vikas Agarwal outlines some significant factors that indicate stability in home loan interest rates
Home loan interest rates have come down quite significantly over the last one year as the Reserve Bank of India (RBI) cut the key policy rates (repo and reverse repo rates) and the cash reserve ratio (CRR). The RBI adopted a soft monetary policy by reducing its policy interest rates. The RBI adopted the soft interest rate regime to promote spending and stimulate economic activities, and prevent the economy from getting into a recession in line with the global economic conditions.
In general, the economic conditions have improved significantly over the last few quarters and the liquidity situation is good in the system. Many felt the home loan interest rates would start going up soon as the RBI exits from its soft monetary policy. However, analysts say the decision to tighten the policy depends on many factors and the RBI will act only after taking those factors into consideration. A premature exit from the soft monetary policy may lead to slowing down the pace of the economic growth. On the other hand, a delayed exit may result in a higher inflation rate in the economy.
Here are some significant factors that will drive the monetary policy stand in the near to medium terms:
Macroeconomic and financial parameters
The RBI has to balance the risks associated with inflation, fiscal consolidation and capital inflows. Its decision to continue or exit from the low interest rate regime depends on several factors associated with these risks. Analysts believe the RBI's policy largely depends on macroeconomic and financial market conditions.
Factors like strong aggregate demand conditions and a well-functioning domestic banking system will pave the way for a gradual exit from the soft monetary policy. Analysts believe the rates will remain stable for some more time. This policy will be in place till the various parameters give strong indications that a tightening will not hamper the economic recovery process and inflation will stay in control.
Inflation rate
The Wholesale Price Index (WPI) based inflation rate is quoting at a low level. But it is rising at an alarming pace and analysts believe it will reach the six percent levels by the end of the current fiscal. A concern at the moment is the inflation rate in primary articles, especially in the food index. The inflation rate in the food index is reported in double digits at the moment.
However, analysts believe a tightening of the monetary policy will have little effect on food inflation as its cause lies in supply shortage. The debate around this indicates there are remote chances of an immediate increase in interest rates.
Credit off-take situation in home loan segment
The credit off-take for banks in the home loan segment had been low during the last few quarters. However, with the economic recovery and improved market conditions, the demand in the housing industry is picking up. Consumer sentiments have improved, and the festival offers and schemes floated by various banks increased demand. The home loan rates are expected to remain soft and stable in the near term as most of the leading banks have extended their festival offers for some more time to attract more borrowers and increase their credit off-take.
External factors
Due to globalisation and strong interdependence of economies, central banks have to consider the global factors before taking any policy decisions within the country. There is uncertainty on the global economic recovery front. The huge stimulus packages announced by central banks across the world have pushed up the inflation rate in many countries.
However, in the US, the inflation rate is still quite low and the Federal Reserve has recently reiterated that the soft interest rate regime will continue for an extended period of time. Given the overall global situation, the policymakers are taking a cautious stance before changing the monetary policy. Therefore, the interest rates are expected to remain stable and soft in the near term.
Courtesy:- FT dt:- 29/11/2009 |
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| Unitech again approach to DIPP for fund raising |
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| The Second Largest Real Estate Company Unitech again approached to Govt. (DIPP) for approval for Real Estate fund raising
via FCCBs near about $700m (Rs. 3200 cr) in a single year third time.
Already in march of this year company raised $325m at price Rs 38.50
per share and in june Rs. 82 per share through External Commercial
borrowings (ECSs) which permitted by Govt in Jan 2009.
In jan 2009 the value of the Real Estate Company Unitech is one third of total debt
10,000/- cr and toady Real Estate Company Unitech shares closed at Rs 79.95, valuding the
firm at around Rs. 19,910 cr. At its peak, the firm was valued at
around Rs 87,370 cr. |
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DLF REJIGS TOP MANAGEMENT |
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Country’s largest property firm, DLF, has shuffled it top deck with its CFO Ramesh Sanka being replaced by Ashok Tyagi and hotel division head Shakti Singh leaving the firm.
A circular signed by company’s vice-chairman, Rajiv Singh, on Wednesday said that Mr Sanka, the group CFO, has been “promoted as the managing director of the office business.” He will lead office leasing business, facility management and utilities business. He joins A S Minocha, who now will change his role from executive chairman to non-executive chairman in the office business.
The transition had begun over a month ago, when Ashok Tyagi, who was until recently managing Mr Singh’s office, was asked to prepare for the CFO’s role. The existing finance, accounts, banking, tax and business planning teams across the group will now report to Mr Tyagi, according to the circular sent to employees. Sriram Khattar will replace Mr Tyagi in vice-chairman's office.
There has been speculation around Mr Sanka’s exit from the group ever since the property market went into a downturn leading to DLF shares touching an all time low. The speculation about his exit coupled with the sale of some of his shares of DLF once sparked a massive sell-off in the market earlier this year. Mr Sanka and the company denied any proposed exit of the CFO, but speculation didn’t die down.
In another significant move, Shakti Singh, who spearheaded DLF’s hotel business has also quit. Mr Minocha will take over the hotel business. Y K Tyagi, an executive director in the hotel vertical, will continue to oversee Amanresorts, a luxury hotel chain DLF purchased in late 2007, and will report directly to the vice chairman.
DLF has recently restructured its entire business by dividing it into sale and lease verticals. The sale vertical includes all homes, and those offices and shops that are slated for sale. Malls and offices slated for leasing are part of the other vertical. The ‘lease’ vertical will now have Mr Sanka as it head, while the other vertical is headed by DLF MD T C Goyal.
In the past six months, DLF has witnessed other exits from its top rung. The company’s residential vertical head, A D Rebello, and SEZ head Yogesh Verma too quit to join other companies earlier this year.
Courtesy:- ET dt:- 01-10-09 |
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PARSVNATH SCRIP ZOOMS, ANALYSTS FOXED |
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Shares of Delhi-based Parsvnath Developers zoomed 16% on Wednesday puzzling analysts who had expected that a lower than-planned fundraising via qualified institutional placement (QIP) could affect the stock.
Parsvnath shares closed at Rs 144.85 on Wednesday. Parsvnath Developers, which now has a market cap of Rs 2,660 crore, planned to raise $150 million via QIP, but later settled for just $35 million. A senior executive at Parsvnath said the company didn’t immediately need more funds. He added that 60% of the funds raised will be used to retire debt and the balance for the execution of existing projects.
Fidelity, Morgan Stanley and American Century were among those who invested in the Parsvnath’s QIP.
“I’m puzzled at the way stock has risen on news which should have been seen as negative,” said Shailesh Kanani, a real estate analyst with Angel Broking. Another analyst with domestic brokerage said there could be some other trigger for the stock to rise so much.
A company executive said the fundraising has eased the liquidity scenario prompting the market to re-rate the firm’s scrip.
Courtesy:- ET dt:- 01-10-09 |
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OMAXE NEW HEIGHTS, FARIDABAD |
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Omaxe New Heights is ideally located in Sector 78 in Faridabad. Faridabad is one of the oldest towns in Haryana. It is called Industrial Capital City of Haryana. It is centrally located from Union Territory of Delhi, Noida and Gurgaon.
Omaxe New Heights is being developed by Omaxe Ltd, one of the leading real estate developers of the country. Omaxe New Heights project comprises of 2BHK, 2BHK + Study & 3BHK + Study in an area ranging from 850 sq ft to 1100 sq ft. These apartments have been affordably priced from Rs16.18 lacs to Rs25.23 lacs. Other specialities of the project are – Free Club Membership, Power Back-up, 24x7 gated security, optional car parking space and vicinity of proposed Metro & FNG Expressway.
Omaxe Ltd was incorporated as Omaxe Builders Private Ltd in 1989 to undertake construction and contracting business. The company changed its constitution as Omaxe Construction Ltd in 1999. The name was changed to Omaxe Ltd in 2006. With over two decades of experience in construction and real estate development, Omaxe Ltd is now one of the leading real estate developers of the country. Omaxe Ltd has successfully executed more than one hundred industrial, commercial and residential projects. The company has made constructions for its clients such as Amity University, LG, Pepsi, Samsung, Wave Cinemas, Apollo Hospital, Delhi High Court, etc. In 2007, its landmark IPO was oversubscribed by 68 times. The company has undertaken construction activities for many projects including hotels, group housing projects, integrated townships, shopping malls and commercial complex in 31 towns in 10 States across the country. Omaxe Ltd is also spreading its wings off shore and has acquired land in Dubai through its wholly owned subsidiary. Omaxe was the first construction company of northern India to receive an ISO 9001:2000 Certification. Their vision is to create a progressive organization matching international standards in integrity, ethics and transparency and to provide quality residential real estate within the reach of all. Their mission is to become a premier organization in real estate sector. |
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Parsvnath Developers Ltd |
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Parsvnath Developers Ltd have recently performed ‘bhoomi pujan’ and announced the launch of Parsvnath City Saharanpur. The project, spread over 107 acres, will offer plotted development, independent floors and expandable villas at affordable rates starting from Rs9.5 lakh.
Parsvnath Developers Ltd, a real estate company, is doing multi-facet construction activities for over two decades. It has attained the status of one of the leading real estate companies of India. The company has transformed barren tracts of land into landscaped green belts housing world-class commercial, residential and recreational properties. With pan-India presence across 47 cities in 16 States, Parsvnath Developers Ltd has a diversified portfolio which includes Integrated Townships, Group Housing, Commercial Complexes, Hotels, IT Parks and SEZs. As on date, the company has 98 ongoing projects and a total developable area of over 193 million sq. ft. across all real estate verticles. Through the length and breadth of the country, Parsvnath group has successfully completed 37 projects. Today, Parsvnath with its high commitments has become synonym for perfection, innovation, customer satisfaction and transparency. They are an ISO 9001, 14001 and OHSAS 18001 certified company. |
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LUXURIOUS APARTMENTS AT EAST OF DELHI |
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Max City Developers brings to you state of-the-art architectural and engineering excellence called "Park Sapphire". Strategically located, just 2 km east of Delhi (Anand Vihar) in an integrated township spread over 100 acres of Ramprastha Greens in the very heart of Vaishali, the project has three high-rise 15-storey towers with luxurious two and three bedroom apartments and penthouses. The construction is in full swing with December 2010 the project completion time.
Courtesy:- HT Estates dt:- 19-09-09 |
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HI-TECH TOWNSHIP IN LUCKNOW |
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Omaxe Ltd. will develop a hi-tech township spread over 2700 acres (approx) in the heart of Uttar Pradesh in Lucknow. Garv Buildtech Private Ltd, a subsidiary of Omaxe, has signed a Memorandum of Understanding with Lucknow Development Authority to develop the Hi-tech Township in Lucknow.
The Hi-tech Township will be executed over a period of five-seven years. It will cater to the growing demand of quality living space in the city. The township is strategically located on the proposed Lucknow Ring Road, close to Lucknow Airport and an half-an-hour's drive from Hazratganj, center of Lucknow city.
Courtesy:- HT Estates dt:- 19-09-09 |
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Bhumi Pujan by KLJ Town Planners in Bahadurgarh (Haryana) |
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KLJ Town Planners has performed a ‘bhumi pujan’ for their group housing project – KLJ Heights – in Bahadurgarh. Within the first phase of the group housing project, the company proposes to develop 300 flats each in the two and three bedroom category.
KLJ Group was founded by Shri K L Jain long back in 1968. KLJ Group is now the upcoming leader in construction/real estate sector having completed number of projects. The company is striving ahead to give its consumers better commercial and corporate space with world-class standards. They are in the process of developing Integrated Townships/Group Housing projects at Faridabad and Bahadurgarh (Haryana) and IT Park at the most prime location in Gurgaon and Greater Noida.
The vision of KLJ Group is to contribute significantly to building the new India and become most valuable realtor. The company has developed an impeccable goodwill and enjoys leadership in India in real estate sector.
Their other upcoming projects of KLJ Group are – La Vista, Sector 77, Faridabad and KLJ NTWork City, Greater Noida
Their completed projects are – KLJ Tower North Delhi, Park Centra Gurgaon, Shop’in Park North Delhi, Centra Square Noida, Shop’in Park CBD (Central Business District) East Delhi.
We, Shri Aditya Estate, are one of the leading real estate consultants, established in Delhi and working successfully for more than a decade. We have developed well-embellished websites viz. www.zameen-zaidad.com, www.propertycafeteria.com with a clear concept to showcase all kinds of properties of our patrons for wider publicity of their products for sale/purchase, leasing and renting purposes.
Our website – www.zameen-zaidad.com - is displaying the details of almost all the projects of KLJ Town Planners.
Homes for sale are available in the above-said projects. For best and transparent deals for apartments in various projects of KLJ Town Planners, our experienced marketing executives can be contacted at mob no 91-9650398921, 9810445860, 9911158601, +91-11-40024002 or email at : info@zameen-zaidad.com.
Our company is on the approved list of leading banks/financial institutions for grant of home loans. We have got an experienced team to process home loan applications. For hassle-free home loans for various projects of KLJ Town Planners our executives can be contacted at mobile no 91-9990217028, 9810445860, +91-11-40024002 or email at : info@zameen-zaidad.com. |
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SAHARA REALTY ARM PLANS TO GO PUBLIC, RAISE $1 BILLION |
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IPO To Make Firm Second Most Valuable Player In The Segment After DLF
The Lucknow-based Sahara Group is planning to take its realty arm public and raise up to $1 billion, which, if successful, would make the company the second valuable player in the segment after DLF.
A person with direct knowledge of the development told ET that investment bankers JM Financial, Kotak Mahindra Capital Company and Enam will advise the initial public offering of Sahara Prime City Ltd (SPCL) along with legal firms Amarchand Mangaldas Shardul Shroff & Co, Hirani & Co, Luthra & Luthra and Milbank of UK.
The IPO is expected to hit the market by end of this year, the person said on condition of anonymity. Another person — close to one of the three investment banks — said the group wants to offload 10% of its stake in the wholly-owned company, valuing itself at $10 billion (Rs 49,000 crore) behind DLF which has a market cap of Rs 63,000 crore as on August 19, 2009.
Currently, the second valuable firm in the Indian realty firmament is Unitech with a market cap of Rs 17,000 crore. The draft red herring prospectus for the offering will be submitted in a week, the person said. A Sahara Group spokesman declined to comment for this story, which was broken earlier in the day by ET Now, this newspaper’s business news channel. According to a real estate expert, the proposed IPO indicates that the group is refurbishing its real estate business after the Reserve Bank of India (RBI) asked it to pull out of its mainstay parabanking activities over a period of time. RBI has asked Sahara India Financial Corporation not to accept any new deposit which matures beyond June 30, 2011. It has also been asked to stop accepting installments of existing deposit accounts with effect from that date.
The Sahara group had announced its intention to launch a real estate IPO two years ago. SPCL owns a plethora of firms including Sahara City Home, Sahara Star Hotel in Mumbai, Sahara Super Speciality Tertiary Care Hospital in Lucknow and Sahara Grace. It has acquired land of 8500 acres for its township projects. It plans to set up 217 townships, spreading over 100 acres each, in various parts of the country. Of this, the first phase is expected to set up 102 townships while the remaining, in the second phase. The first phase is expected to be over in next five to seven years while it will kick-off the second phase from 2015.
Sahara’s plans aligns with the larger trend in the realty industry, which is crawling out of a market slump. A clutch of real estate companies are in the process of launching IPOs this year in order to cash in on the slow reversal of fortunes in the sector. Emaar MGF, Lodha Developers, Nitesh Estates and Oberoi Constructions are some of the firms waiting this year to launch IPOs. Of this, Lodha Developers’ is expected to be pegged at over Rs 2,000 crore which is value the company at around Rs 20,000 crore. |
Courtesy:- ET dt:- 20-08-09 |
Economy is sound, let's push reforms, says Economic Survey |
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| Pre-Budget Economic Survey 2008-09, tabled in Parliament today by Finance Minister Pranab Mukherjee, said India could grow up to 7.75 per cent in 2009-10, up from 6.7 per cent in 2008-09, provided the global economy, particularly the United States, bottomed out by September and the government was able to push the button on significant economic policy reforms. |
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JLL named top realty services company |
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| Jones Lang LaSalle (JLL) has been recognised as the best overall provider of corporate real estate services by the Watkins 2009 survey of Corporate Real Estate Services Providers. Of the 19 providers evaluated by the largest users of commercial real estate services, Jones Lang LaSalle was rated No 1 in every category, including delivery of result, adaptability of services pricing, reputation and financial strength. |
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Taxing time for tax-free enclaves
(The ongoing economic crisis has affected SEZ development work) |
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| While recognising the performance of special economic zones (SEZ’s), the Economic Survey 2008-09 has called for checking “proliferation” of the tax-free industrial enclaves without offering and reasons. After the SEZ Act was enacted in 2006, incremental employment in the zones stood at 2,52,735 till March 2009 while incremental investment stood at Rs. 98.498 crore. Current there are 568 formally approved zones with land under possession, of which 318 ar3e notified and eligible for tax benefits. Whil many developers have asked for extension of time for developing the zones some developers like DLF and K Raheja Universal have already scrapped their projects. |
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Global crisis pulled down growth |
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| The Economic Survey has called for quicker realisation of infrastructure investment and a review of the labour laws for pushing growth in employee-intensive sectors. Overall industry sector recorded growth of 2.4 per cent in 2008-09 against 8.5 per cent in the year ago period. “The year has been marked by a very strong downturn in industrial growth due to the global financial shock that not only impacted the financing of industries but also their domestic and external demand,” the survey stated. “A sudden freeze in the overseas credit also played a major role in pulling down the manufacturing sector’s growth as external finance accounts for a large chunk of the investment needs of domestic private companies, the survey stated. The annual report card of the performance of the country’s economy also says that the shrinkage in demand for exports particularly in the second half of the fiscal sharply dented the performance of industries with high export intensity. |
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DLF raises Rs. 1,000 cr through land sales |
| DLF has raised around Rs. 1,000 crore through sale of land parcels across four cities in the past 4-5 weeks and is on course to close more such deals worth another Rs. 500 crore in the coming weeks. DLF has sold off land parcels in Mumbai, Baroda, Gangtok and NCR. The plots in Prabhadevi, Mumbai and Baroda were not marked for any specific purpose, as the company hadn’t paid government fees and obtained license for any specific use. DLF smaller rival Unitech sold off its hotel in Gurgaon and an office building in Saket in the past few months. But selling assets, especially land hasn’t been easy for any developer as there were hardly any buyer for land. DLF though has successfully closed multiple transactions of late. |
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Emaar to try IPO route again
(In talks with Kotak Mahindra Capital to handle IPO worth over Rs. 4,000 Crore) |
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| Emaar MGF has taken the first step towards return to the stock markets by opening talks with an investment banker. The property developer has started preliminary discussions to appoint Kotak Mahindra Capital to handle its initial public offering (IPO), 18 months after its first attempt failed. Emaar MGF, a joint venture between MGR Developers and Emaar Properties of Dubai, could be looking to raise at least Rs. 4000 crore although it is not clear how much stake the company will dilute. DLF, Indiabulls Real Estate, HDIL and Sobha Developers have in recent weeks raised over Rs. 8,000 crore through Qualified Institutional Placements of shares. The successful IPO last month of Mahindra Holidays, which raised Rs. 300crore, is also being seen as a sign of a revival In the primary market for equities. The failure of Emaar MGF’s share offering –billed as India’s third largest after Reliance Power and DLF. |
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'SMEs lose Rs 2000 crore due to derivative exposure' |
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| Small and medium enterprises (SMEs) in the country have lost around Rs 2,000 crore owing to their exposure to derivative products offered by financial institutions. The exporters were not informed about the full implications of derivatives and most had entered into contracts in good faith. Their losses had forced some SMEs to close down, while a few others were on the verge of closure, he said. Sakthivel said the RBI had already directed banks to keep this amount in a separate account and not to treat them as NPAs. Banks are waiting for further instructions from RBI. “Banks must be instructed to resolve the issue on a no-profit, no-loss basis. Many exporters had complained that banks had sold them complex derivative products; some companies even filed court cases against these banks. He added that while demand is shrinking, exporters are not in a position to match the prices offered by competitors, especially China. Moreover, banks are not willing to lend to exporters, looking at their balance sheets in view of the derivative losses. Bankers are using this circumstance to induce exporters to hedge, without explaining the concept to them. Many private sector banks have earned a bad name among exporters and this may affect their core business of lending to SMEs, feels a leading chartered accountant. |
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It’s raining dividends at MFs |
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Equity Mutual Funds are handing out dividends to investors like never before. Fund houses such as Franklin Templeton,
SBI Mutual, HDFC MF, Reliance MF, Tata MF and UTI have announced dividend of 20-60% in their bid to encourage investors to retain money in existing schemes.
More than anything else, the near-80% market rise over the past four months has helped mutual funds to distribute surplus profits. Fund houses have seen a phenomenal AUM growth over the past six months. Even smaller fund houses, including Baroda Pioneer AMC, DBS Chola, Taurus Mutual Fund, Canara Robecco, DBS Chola and Religare MF, have seen a decent appreciation in their assets under management during this period.
“One of the reasons for handing out large dividends is to keep retail investors in good spirits,” said the fund manager of a joint venture (Between Indian and foreign entities) mutual fund house. |
Dividend Payout BY Equity Mutual Funds, ‘09 |
Scheme |
Record Date |
Dividend (%) |
| Franklin India Prima |
June 24 |
60 |
| Birla Sun Life Basic Industries |
June 23 |
50 |
| Principal Emerging Bluechip |
June 19 |
40 |
| HDFC Top 200 |
Mar 5 |
30 |
| HDFC Equity |
Mar 19 |
30 |
| Reliance Vision |
Mar 20 |
20 |
| Reliance Growth |
Mar 20 |
20 |
| Tata Pure Equity |
Apr 17 |
20 |
| UTI Mid Cap |
June 15 |
20 |
| DSPBR Tiger Fund |
June 19 |
20 |
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STRUCTURED GROWTH IN GURGAON |
| The economics showdown of 2008-2009 had brought the millennium city of Gurgaon to its knees. According to a consultant who advises large ticket Investors, the big new thing to watch out for in Gurgaon is affordable housing. In the new sector in the Manesar area the government has introduced a new scheme where the density allowed has been increased to 2.5 as against the regular 1.5. Developers have started applying for licenses in this category. The important thing is that developers who had earlier finished the available FSI have now started applying for licenses under this scheme. In the established segments of the Gurgaon market there has been a mixed response to the economic showdown. Peripheral areas such as Manesar and Bhiwadi` are also in demand. The Haryana government’s move to allow registration of single floors on independent plots will give a new direction to the market. In the commercial market there has been a 5 percent movement and values range between Rs.65-80 per Sq. Ft... There is an estimated to 2.5-3 million Sq. Ft. of Grade a office space nearing completion are still IT companies which have started expanding operations again. The Gurgaon market has now established as mature real estate destination. |
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Housing is king Faridabad |
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| The real estate sector has come alive in Faridabad thanks to a host of activitities in the past few months in which development of Faridabad as one of the hottest destination in NCR was the prime focus. Builders ranging from BPTP, SRS, Best Group, Crown Group, to name a few, have already forayed into residential projects with billions of investment. “Faridabad is a city which offers a good living ambience and hence people from all walks of life are coming and settling here. And pricing is indeed the buzzword in this industrial city. According to another prominent builder. “Faridabad real estate is undervalued at the moment also pointed out to good connectivity, especially the commencement of Badarpur Flyover as one of the reason for people flocking to Faridabad. The people want quality at competitive prices builders in the city are offering this, both in the housing sector as well as in retail. |
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Despite govt efforts, Delhi to face shortage of 40,000 rooms |
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| The National, capital Region faces a massive shortfall of hotel rooms ahead of the 2010 Commonwealth Games. Despite efforts made by the Center to set up new hotels and gust houses by roping in the Delhi Development Authority and the MCD, the industry estimates a shortage of 40,000 rooms during the games. The government expects to make available about 10,000 hotel rooms and 11,000 guest rooms with the help of various civic agencies before the game begin. The DDA has auctioned 33 hotel sites for this purpose. |
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Ebony Gautier to open 25 more stores |
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| EBONY Homes, the home furniture retail arm of the $3-billion DS Constructions, plans to invest Rs. 120 crore to set up a chain of 20-25 furniture stores styled Ebony Gautier across the country by March 2012. In the first phase, we plan to expend operations in the north and the south. We will hit the west and the east the following year with another 8-10 stores. It currently operates two stores in the NCT, one each Noida and Gurgaon. This is Gautier’s second innings in India, the first being its tie-up with the KK Birla group. |
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Jai Corp’s showpiece projects remain on paper |
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| Jai Corp stock almost hit Rs. 1,400, while its market capitalisation nudged Rs. 25,000 crore. Anand Jain, who also happened to be Reliance Industries Chairman Mukesh Ambani’s close friend and business associate. To set up a couple of large Special Economic Zone (SEZs) across 17,500 acres in Mumbai and Navi Mumbai, build the 22 km Mumbai. Street believed Jai Group had a winner on its hands and the estimated Rs. 34,000 crore financial outlay for these projects was no big deal. |
THE WAIT LIST |
| Project |
Status |
| Mumbai SEZ |
Land partly acquired but, no government consent yet for transfer of land to MSEZ |
| Navi Mumbai SEZ |
Master plan being finalized, boundary walls being built |
| Airport |
CIDCO yet to get okay to conduct environment-impact study |
| MTHL |
State government yet to call for bids after two failed attempts |
| Rewas Port |
Maharashtra port policy in place but no financial closure |
| Metro rail |
Bids not invited by the government yet for next phase. |
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Apollo Hospitals achievers Rs. 1.5k Cr financial closure for expansion |
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| Chennai-based Apollo Hospitals Enterprise Ltd. Has finalised financial closure for their Rs. 1,500 crore expansion plan, to add 2,000 beds. Prathap C Reddy, vice-chairman, and Suneeta Redy, executive director (finance) today said the group had raised Rs 300 crore through equity, Rs. 200 crore through internal resources, Rs. 120 crore through family warranty and rest of the money through loans. The cost of adding one bed is about Rs. 50 lakh, said Reddy. Group is also planning to set up a medical college in Chittoor district of Andhtra Pradesh and in Madurai. The hospital chain is also planning to set up an Apollo Health City in Hyderabad. APOLLO Hospitals Enterprise has reported a 38 per cent increase in the net profit for the quarter ended March 31, at Rs. 29 crore as compared to Rs. 21 crore a year earlier. |
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Many in race for new NHDP projects |
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| The National Highways Authority of India (NHAI) has got an average of over 15 bidders for each of 35 new projects worth Rs 39,000 crore under the various phases of the National Highways Development Programme (NHDP). Among the bidders are Larsen & Toubro, HCC, Soma Isolet consortium and KMC. The projects put for bid under the annuity model are the seven in the 270 km Jammu to Srinagar road worth Rs 9,500 crore. Phase II constitutes the North-South corridor connecting Srinagar to Kanyakumari, including the Kochi-Salem spur and the East-West Corridor connecting Silchar to Porbandar, beside port connectivity and some other projects on the national highways. |
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Attracting industries to hilly areas an uphill task in Uttarakhand |
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Under the hill industrial policy of 2008, mainly for small industries, which offers a slew of sops (including heavy transport subsidies), the government has not been able to ensure the setting up of a single manufacturing unit in the hills, mainly due to the on-going recession and the unavailability of suitable land. However the officials claim that investment proposals for hotel resorts and spas at key tourist sites have started trickling in. Bharat Hotels is setting up a five-star hotel at Rishikesh, for which the government has already granted permission. Pindar Glacier Resorts is planning to invest Rs 2.25 crore in a hotel resort at Kodiyala on the banks of the Ganga near Rishikesh. The government has received several proposals for the Tehri dam reservoir site, for which it has already set up a development authority. There are at least 23 new proposals for hotels and spas in Chamoli district, a hilly area where the Badrinath shrine is located. Under the special integrated industrial promotion policy 2008, the government is offering sops like up to 90 per cent rebate on VAT, free stamp duty, heavy transport subsidy and rebate on power tariffs. The government is also looking for new entrepreneurs in the fields of eco-tourism, adventure sports and service sectors, which can take advantage of the new policy. |
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Wal-Mart opens new front for battle-hardened Metro |
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IN CONTRAST, Metro has faced hiccups, In Kolkata; for example, it had decided to start work in 2005 and was given a licence. But it ran into a land dispute in 2006, before the dispute could be resolved, Metro’s licence was cancelled as the Forward Bloc, a partner in the Left Front government, set itself against granting permission to Metro, at one point, the wholesaler threatened to scrap its plans to open the store. Finally, Chief Minister Buddhadeb Bhattacharjee intervened and the licence was issued in October 2008.
Wal-Mart has challenged Metro on many other fronts. It has decided to give up to 25 percent discount over the local wholesale market at its 50,000-Sq. Ft. Amritsar store and has already got 30,000 kirana stores, hotels, restaurant and offices as members.
Metro has reacted fat and is planning to launch similar credit cards to its customers who are short of working capital. The companies tie up with bank and financial institutions for this.
Analysts say Wal-Mart wouldn’t have it easy as Metro has distinct first-mover advantage – after all, it already has half a million customers.
Industry sources say Metro, on some peak days, has been able to generate sales worth Rs. 1 crore in a day at its Bangalore centers. Dlouhy says educating the market in India is a constant process. The fact that there is a cost associated with distributors and the credit they extend is often masked to a small retailer is one education issue which Metro is attempting to address. Metro has also tackled the fundamental problem of wastage (estimates put it at almost half of the produce in India) by putting its infrastructure in place-the company has set up a huge supply chain transporting refrigerated foods across India.
Wal–Mart in India is surely taking note of that.
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Lanco Infra Surges on Project Commissioning |
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| LANCO INRAATECH shares rose 7.17 per cent to close at Rs. 364.15 as the company commissioned a small hydro project in Himachal Pradesh. The 5MW power project was implemented by its subsidiary-Vamshi Hydro Energies at Dharmshala. The company stated that the project has already started commercial generation. The stock opened at Rs. 330 and made an intraday low of Rs. 322.3 and a high of Rs. 368. |
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IRB Infra jumps on highway deal |
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| The IRB INFRASTRUCTURE DEVELOPERS scrip rose 6 per cent to Rs 148.15 on securing a highway project in Rajasthan. The company emerged as the lowest bidder for the highway project to be built between Jaipur to Deoli section of NH12. The Rs. 1,500-crore project is on a grant of Rs. 306 crore for the project from NHAI. |
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Sobha Explores PE, QIP routs to raise money: |
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REAL estate major Sobha Developers is in talks with private equity player such as JP Morgan, Actis and IL & FS for a stake sale in some of its projects to raise much needed money. The Bangalo9re based firm is also planning a QIP to reduce debt burden almost by RS 800 Cr. In this fiscal.
Sobha is looking to raise up to Rs 1500 Cr via the QIP route in the coming weeks. The exact quantum of mop up would be announced soon.
Source: The
Economic Times 24 Jun, 09
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| DLF in talks with Stan Chart for $300m @7% |
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India’s largest real estate firm DLF is close to raising $300m by way of a foreign currency loan at a rate significantly lower than what it would have to pay in the domestic market , a top company executive told ET.
DLF which had net debt of Rs 14000 Cr. At the end of March, has been raising long term loans in the domestic Market to replace shorter duration debt. Since December last year it has raised Rs 3000 Cr of long term debt from a clutch of state run banks and the insurance major LIC at an average borrowing cost of 14%.
Source: The
Economic Times 24 Jun, 09
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KS Oils buys 35K acres in Indonesia |
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Madhya Pradesh based edible oil manufacturing company, KS oils has acquired an additional 35000 acres in Indonesia for oil palm plantation. With this acquisition , total land acquired by Co. is 85000 acres and it plan to invest Rs 750 Cr over a three year period in palm plantation and production of crude palm oil (CPO) there.
Source: The Economic
Times 24 Jun, 09
|
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The Securities and Exchange Board of India (SEBI) |
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The Securities and Exchange Board of India (SEBI) is unlikely to alter the pricing formula for Qualified Institutional Placement (QIP) in the near future, according to an official familiar with development. Recently merchant banker has made a presentation to the regulator, requesting the companies be given more flexibility while pricing QIPs.
“Any new norm needs to be tested for at least a year before it is reviewed , if institutional investor are convinced about long term story of the company , then they should be willing to come in at Sebi (mandate formula) Price,” said an official .
QIP is a process, by which a company sells its shares to qualified institutional buyer on a discretionary basis at a price based on sebi guideline.
Some of the companies eyeing the QIP rout like Adani Enterprise (Rs 1500Cr.), Essar Oil (Rs.10000 Cr.), and HCC (Rs 1500Cr.)
HDIL (Rs 3000 Cr), JSW steel (Rs 5000 Cr), Karnataka Bank (Rs.500) Cr, Parsvnath (Rs 2500 Cr), and Sobha Developers (Rs1500 CR).
Source:
The Economic Times 25 Jun, 09
|
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| Commercial Realty gets New Lease of Life |
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After Moths of inactivity, the commercial office space market is starting to stir. A number of larger lease are happening across the major cities. Last few months have seen demand for small office spaces in the 5000-15000 Sq. Ft. range. But May onwards big lease have started to happen, recently a lease of 50000Sq.Ft has taken place on Golf Course road. Samsung has signed up for 66000Sq. Ft. area in Noida, like wise many big brands are coming up for lease.
“Many Indian Corporate have been struggling with high rentals, now they are securing real estate space at lower cost”
Says Dutt, emphasizing that JLLM has seen a surge in transaction at comparatively low rentals.
Companies seem to be leasing additional space for expansion, which is positive trend, says Roy.
Source: The
Economic Times 25 Jun, 09
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Pantaloon’s Sale up by 14 Percent |
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Kishore Biyani led Pantaloon retail India has posted over 14% growths in the last month may which is 14% high in comparison to last year may 2008’s growth from its Value, Home and Lifestyle Retailing segments.
Future group is also planning to expand by opening nine additional central malls by Dec 2009. The BSE listed company’s three segment put together generated sales worth Rs 619.27 Crore lat month, against Rs 540.66 Cr. in May 2008, up by 14.54%. |
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Hyper marts in Expansion mode as rentals ease |
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| Enthused by fall in rentals and eyeing large business volume in the current downturn, India’s largest retailer like KIshore Biyani’s Future group, Aditya Birla Retail, Reliance Retail ,Tata’s Trent , RPG group’s Spencer’s and others are preparing aggressive plan to open hypermarket in the country. Big retail player are planning to open 75 from these in next year, nearly half of what they have now. Hyper markets are new version of Super market, and are in size of 20,000 sq.ft. |
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HDFC to cut rates if cost of funds declines |
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The countries largest mortgage firm Housing Development Finance Corporation (HDFC), will reduce lending rates if the cost of fund come down. Pointing to surplus funds in the system Deepak Parekh (HDFC Chairman) said banks had parked Rs. 1,10,000—1,20,000 Crore with the RBI , in the last two months alone, further more banks were maintaining higher than the mandate SLR Ratio.
On the housing front, Parekh said the developers were now looking at building affordable houses and the prices had bottomed out by 15-30 % except for some parts like South Mumbai and the Delhi heartland. |
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PFC targets disbursal of loans worth Rs. 23k Crore in FY10. |
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Power finance corporation (PFC), the country’s largest power sector financier, is eyeing disbursals of around Rs. 23000 cr. By the end of the current financial year Ended March 2010 said CMD Satnam Singh.
Singh also informed that the site for locating second ultra mega power project in Andhra Pradesh has been finalized at Kotapet.
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News from Real Estate |
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Peter England to launch value retail story – The Apparel division of Adiya Birla Nuvo’s, Peter England fashion & Retails (PEFR) is planning to expand it’s retail store by financial year 2010-11, from around 2000 points of sale, including 350 Exclusive Brand Outlets (EBD’s) Peter England will grow to 500 EBD’s by mid 2010-11, through the franchise route, PEFR accounted for 25-30% of the Rs 900 Cr. garments segment revenue reported by Aditya Birla Muvo in fiscal 09.
New tax saving scheme to fund infra in budget-Government is now considering a new tax-saving to garner ‘idle money’ lying with households and elsewhere in the system, primarily to fund building of infrastructure. The scheme could offer tax benefit for investment upto Rs 5 lakh and help in partly muting the country’s infrastructure funding needs, which have been pegged as high as $750 bn sources said. |
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| Indian infrastructure heading towards meteoric rise ……………. |
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- Ansal properties to raise Rs. 1500 Crore.
Ansal Properties & Infrastructure Ltd. the flagship company of Ansal API group has joined the race to mop up funds through Qualified Institutional Placement (QIP) route. The company is planning to raise up to Rs. 1500 Crore through QIP.
However it is seeking shareholder s approval to raise upto Rs. 2500 Cr. Through equity routes in the next one year.
- PE Firm FIRE Capital to invest $300 mn in Tier-2 and 3 towns.
With the fresh demand for affordable homes picking up, private equity firms, which had disappeared from the Indian real estate market after the global melt down, have now started looking for fresh investment opportunities.
An American company FIRE capital fund (FCF) has decided to invest $300 mn in 10 residential projects over the next three years starting from calendar year 2010 in Tier 2 and 3 cities to develop mid – income group housing projects.
The firm has already invested over $100 million in the Indian Market and is looking at raising equity under new funds.
“The Indian real estate market is seeing a revival of demand as the consumer sentiment is improving. We want to tap this opportunity in next three years,” said Om Chaudhary, CEO, and FIRE Capital Funds.
The fresh funds will be invested in phases of $100 mn each year for the next three years in the mid income Housing projects. Some smaller cities from Punjab, Maharashtra, Gujarat, and West Bengal are on priority to be developed.
One important reason to select small cities is availability of land at competitive rates.
In fact, FIRE already has 75 % stake for $15 mn in a Nagpur- based project – The Empyrean, being developed by arcor group.
Source: Business Standard Date: June 19, 2009
- Mutual fund houses Targeting Infrastructure and Realty stocks
Infrastructure and realty sectors are now back on radar of Mutual fund houses. In the early five months of current calendar year, they have significantly increased their exposure to stocks in these sectors. Some fund houses have launched some good schemes as well. Reliance Capital Asset Management recently launched an open ended infrastructure fund. Tata mutual fund has also applied to SEBI for launching a small and Mid cap Infrastructure fund.
In terms of number of shares & exposure to mutual funds recorded a huge growth. According to Mr. Mahesh Patil , Co-Head Equity Birla Sun Life Mutual Fund ,” at present infrastructure sectors accounts only 4 % of our GDP , while it accounts 10% in China s GDP . There is a wide gap which should be bridged out very soon.
There is a huge expectation for FDI in upcoming years as per the Indian government.
Increasing Exposure;
Name of the Company in which fund houses increased holiday |
No. Shares in January |
No. of Shares in May |
| GVK Power &Infrastructure |
42 Mn |
88mn |
Unitech |
1.2 mn |
33mn |
Suzlon Energy |
16 mn |
46 mn |
India bulls Real Estate |
32000 |
17 mn |
IRB Infrastructure and Developers |
5.2 mn |
17 mn |
NTPC |
28 mn |
39 mn |
DLF |
700,000 |
6.1 mn |
GMR Infrastructure |
6.5 mn |
11 mn |
Reliance Power |
2.6 mn |
5.2 mn |
Ultratech Cement |
290,000 |
600,000 |
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Source: Business Standard Date: June 19, 2009
- HDFC to invest in Jerry Rao’s Nano Homes :
- Value and budget housing Development Corporation is targeting building 1 mn Homes in 10 years across 17 cities .
- The Buzz around nano – housing is getting louder with several unconventional players jumping on the bandwagon .
- Matheran Realty , a PE – financed firm , is building a 15000 unit complex in karjat .
- Tata Housing is building a low cost project in Boisar.
HDFC is now strategically planning to enter in Low cost housing venture with Jerry Rao as an investor , Value and Budget housing Development corporation .The first equity round ,in the sub – Rs.50 Cr. Region ,is just the beginning of fund raising plans for the venture , that is targeting building one million homes in next 10 years across 17 cities . Value and Budget will access private equity route in subsequent capital raising rounds .
“HDFC Ltd is considering participation in the project in a small way “ Said an HDFC spokesperson.Banking sources said HDFC was one of the investors participating in the first round of fund raising.
Source: Business Standard Date: June 20, 2009
- Future Group Goes into Home Construction
The Kishore Biyani- led Future Group is going into real estate business through a 50:50 joint venture with kolkata based developer Sumit Dabriwal, for building, affordable, Branded, ready to move in homes.
This is a part of company’s plan for a turnover of Rs. 13000 Crore by July 2011, a growth of 35 % last year.
At press conference here today, Kishore Biyani, CEO Said FH Residencies, part of the Future Group (it’s a 100% subsidiary of home solutions Services, also part of group) had formed the 50:50 venture with Dabriwal for Branded apartments that would be affordable. This is a national tie with Sumit Dabriwal and Future Group.
Plan is in close under observation; results will come within this year.
The target buyers are young working class, who are pressed for time.
Source: Business
Date: June 20, 2009
Standard
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FOR A VALID GIFT OF PROPERTY… |
Ashish Gupta outlines some points to be considered while drafting a gift deed
A gift is a common mode of transfer of property. It is the transfer of certain existing moveable or immoveable property by one person to another. The transfer should be made voluntarily and without consideration. The person transferring the property is called the donor. The person to whom the property is transferred is referred to as the donee. The donee must accept the property during the lifetime of the donor and while he is still capable of giving. In case the donee dies before acceptance, the gift is void. The gift can be effected through a gift deed.
Here are some points that need to be considered while drafting a gift deed:
To make a valid gift of property
The donor is the person who gives. Any person who is competent to contract can make a gift of his property. A minor, being incompetent to contract is incompetent to transfer. A gift by a minor is void.
However, a minor can accept gifts. A natural guardian can accept a gift on behalf of a minor with the condition that the person nominated in the gift deed will act as a manager of the gifted property. Such acceptance would amount to recognition by the natural guardian of the nominated person as the manager or the agent of the minor for the purpose of the property.
For a valid acceptance
The donee is the person who accepts the gift. A minor may be a donee. But if the gift is onerous, the obligation cannot be enforced against him while he is a minor. But when he attains adulthood he must either accept the burden or return the gift. A gift may be accepted by or on behalf of a donee.
A donee may also be a person who is unable to express acceptance. A gift can be made to a child and could be accepted on the child's behalf. The donee must be an ascertainable person.
Process of gifting
A gift involves the process of giving and taking which are two simultaneous and reciprocal acts. There must be acceptance of a gift as well. There is no particular mode of acceptance. It may be express or implied. Further, the property must be accepted by the donee during the lifetime of the donor. The fact of acceptance can be established by different circumstances such as donee taking the property or being in possession of the deed of gift. If a document of gift, after its execution or registration in favour of a donee is handed over to him by the donor, it amounts to a valid acceptance of the gift.
Competence to contract is an important qualification required for making a gift. A gift to be valid must be made by a person with his free consent and not under compulsion. However, a mere weakness of the intellect would not be sufficient to invalidate the gift.
The gift must be a certain existing movable or immovable property. It may be land, goods, or actionable claims, and must be transferable. There cannot be any gift of future property. A gift must be of tangible property. Only an existing and tangible property is capable of being gifted.
Absence of consideration must
A gift is a transfer without any element of consideration. Complete absence of monetary consideration is an important prerequisite. Where there is any equivalent of benefit measured in terms of money in respect of a gift, the transaction ceases to be a gift.
The transfer of property must be voluntary and made gratuitously. It must satisfactorily appear that the donor knew what he was doing and understood the contents of the instrument and its effect, and also that undue influence or pressure was not exercised upon clear intention to make a gift.
Acceptance
Even when a gift is made by a registered instrument, it has to be accepted by or on behalf of the donee to make it complete, failing which the gift will be void. The law requires acceptance of the gift after its execution, though the deed may not be registered. The acceptance may be signified by an overt act such as the actual taking of possession of the property, or such acts by the donee as would in law amount to taking possession of the property where the property is not capable of physical possession. Delivery of possession is an essential condition for the validity of the gift.
However, it is not necessary that in every case there should be a physical delivery of possession. Possession may be either actual or constructive. The donor should divest himself completely of all ownership and dominion over the gift.
Registration
A gift of immovable property can be made only by a registered instrument. A gift of immovable property, which is not registered, is bad in law and cannot pass any title to the donee. Documents should be stamped with appropriate nonjudicial stamp, registered as required under the India Registration Act and attested by two witnesses. A mere delivery of possession without a written instrument cannot confer any title. A deed cannot be dispensed with even for a property of small value.
Courtesy: - ET dt: - 07-06-09 |
LIC HOUSING MAY TAKE QIP ROUTE FOR FRESH EQUITY |
LIC Housing Finance (LICHF) is planning to raise fresh equity capital through qualified institutional placement (QIP). The company would issue fresh equity shares to the tune of 10 per cent of its total paid-up capital and existing shareholders are expected to subscribe to it proportionately. The total paid-up capital of the company is estimated at around Rs 85 cr.
If we get suitable valuations and if the market improves, we would like to avail of this route (QIP). But with a capital adequacy ratio of 16 per cent, we do not have any compulsion to raise capital in the current financial year,” said LICHF Director and Chief Executive RR Nair.
Currently, Life Insurance Corporation of India (LIC), which is also the promoter of LICHF, holds a 40.84 per cent stake in the company, followed by foreign institutional investors (FIIs) with a 20.61 per cent stake. The remaining is held by the public.
QIP is the private placement of eqity shares – which can be converted into equity by a listed company – with qualified institutional buyers approved by the market regulator Securities and Exchange Board of India (Sebi).
Without divulging further details, Nair added that the promoter’s shareholding would remain the same after the issue. Going by present valuations, LICHF could raise around Rs 240 cr through the issue, including the premium. As pe regulatory norms, the price of equity allotted through QIP is derived from the share’s average traded price during the previous 15 days.
Since the global economic downturn intensified in October, housing finance companies have been facing difficulties in raising funds. In fact, LICHF is only the second company which is planning to raise capital through the QIP route, after the contry’s second-largest realty player Unitech announced its plans to raise Rs 1,250 cr through this route to clear its debt obligations.
Meanwhile, the second-largest housing finance company in the country is planning to grow its disbursements by 25 per cent duing 2009-10.
“Our disbursements during 2008-09 grew by around 24 per cent to Rs 8,700 cr and, by March next year, we would like to disburse Rs 11,000 cr,” Nair said.
Talking about the present home loan market, Nair said that disbursement in March surged by 42 per cent due to property prices falling down.
“Market sentiments had improved in the last two moths. We disbursed around Rs 1,250 cr in March alone, compared to Rs 885 cr in the corresponding period last year,” he said
Courtesy:- BS dt:- 14-04-2009
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PE INVESTORS EYEING DISTRESSED PROPERTY DEALS |
MUMBAI: Foreign private equity investors are eyeing the Indian real estate market to buy properties from small and mid size developers badly hit by the economic downturn.
A clutch of big investors from the EU and Middle East are expected to invest $400-500 million in distressed land deals. These include Spain’s Nova Capital; Germany’s Sachsen Fonds, Qatar based Barwa International and Al Aqueela, UK’s Matrix Partners and Aberdean International.
"In the next six months, we will see lot of distressed real estate deals in India. Small and medium developers with turnovers in the range of Rs 50 crore-Rs 250 crore will be forced to go for distress sales to sustain themselves in the economic downturn," said YEN Management Consultants managing director, Sunil Shirole, who has been approached by such developers.
Small and medium size developers across the nation are said to be stuck with 5-6 projects on average as demand has been sluggish. They plan to sell 40 per cent of the existing projects at a discount of 25-40 per cent of the original price to fund rest of their projects.
Shirole said, "We could see 50 per cent of total real estate market coming under distressed deals. As foreign PE players have the liquidity and staying power, after buying such properties, they can wait 4-5 years or till such time the property market rebounds to sell them at higher price."
However, the outcome of general election can play spoilsport. "A stable government is a prerequisite to these foreign investors. If there are frequent changes at the Centre, they might turn their back for another five years," cautioned Arun Goel, CEO, DHFL Venture Capital India.
Courtsey: ET dt.17.04.2009
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