The department of industrial policy and promotion is considering a proposal to allow real estate developers to buyback built-up area sold in software technology parks of India (STPI) units and lease out it to other businesses.
The issue came up in the last meeting of foreign exchange promotion board (FIPB), when the board took up real estate company Information Technology Park’s request for a clarification whether it could buyback built-up space constructed by ITP itself and lease out the same to other businesses. The company has set up an information technology park under the industrial park policy.
The STPI policy entails exemption from income-tax for IT companies for a decade for setting up IT units. The tax benefits are expiring next year. There are around 6,000 IT units across the country registered under the STPI scheme.
The company has informed the board that as the STPI benefits would expire in a year, most of these units are not expanding and consolidating in SEZs and hence, these units have offered to the company to buyback the built up space sold by the company to them. The company has now sought clearance from the board whether it could buy back the built-up space and lease out to other business units.
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Posted in Property News
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Tagged builders, FIPB, Information Technology Park, IT, Real Estate, Real Estate Company, Real Estate Developers, SEZ, Sezs, Software Technology Park, Software Technology Parks, STPI
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Hiranandani Construction part of the Mumbai-based real estate developers, Hiranandani Group, is looking to invest more than six hundred forty crore rupee for developing five new hotels in Mumbai, Bangalore, Chennai and Hyderabad.
The company is in conversation with 8 international hotel brands for contracts. The company plans to fund the expansion programmed through debt and reserves, in an equal manner. MD Mr. Surendra Hiranandani said, “We azure confident of raising the debt required”.
One of the 5 properties, the one for Chennai, will be a boutique hotel with with about sixty rooms and buy it for thirty crore rupees. The other hotel, also in Chennai, a 5-star property, will have more than three hundred rooms and be built with an outlay of three hundred seventy-five crore rupees.
The company’s Mumbai hotel, a 5-star one to be built for one hundred forty crore rupees, will come up in Powai.
Real estate developers have got a new way of perking up the market. Unitech, DLF, HDIL, BPTP and other big realty giants are offering a 30-40% discount on ongoing projects.
According to analysts such projects will help stimulate demand and bring in the much-needed liquidity in the industry, which is already dealing with unsold stock in projects that were launched in last one year.
In last quarter, DLF has launched a project each in Hyderabad and Bangalore. DLF executive director Mr. Rajeev Talwar said that about 500 units have already been sold in the price range of Rs 1,850-1,890 per square feet.
Transactions are still slow and people are taking a lot longer to decide. Buyers are still uncertain about the delivery capabilities of developers, as the market has seen a number of projects going beyond deadline in recent times.
