September 25, 2009 – 1:00 pm
Though the 10 IPOs in the fiscal have mopped up close to Rs 10,000 crore, the attitude of retail investors to the offerings has been one of extreme caution.
While participation by institutional and high net worth investors has been positive, retail interest has waned, said merchant bankers.
The 10 IPOs that hit the market this fiscal have seen their retail portion getting subscribed less than four times on an average.
The IPOs may be getting subscribed multiple times. But the fact that several investment recommendations stated that the IPOs were overvalued put retail investors off.
Mr Adeel, a retail investor, said: “A small-time retail investor will look at investment recommendations and most of the IPOs are said to be overvalued. This will keep us away from those IPOs.”
September 24, 2009 – 5:28 pm
Parsvnath Developers Limited is looking toward tier-II cities and following the strategy, PDL announced Parsvnath City at Saharanpur. It will offer plotted development, independent Floors and expandable villas at affordable prices. Spread over more than hundred acres, Parsvnath City, Saharanpur is strategically located on Delhi road. First of its kind project will offer independent floors in affordable range starting from Rs 9.50 lakh. The project will comprise of plots in various sizes of 201, 300, 402 and 502 square yards. The independent floors will have the options of 2 bedroom, 3 bedroom and 3 bedroom with study room units and option of expandable villas are also available.
Parsvnath City will have fully fledged infrastructure wide well lit metaled roads and solid waste management. The township will also have Group Housing, School, Community Center and Mall. The realization from the project will be about three hundred fifty crore rupees spread over 2 years. The development of the township is planned to be completed in 2 years.
September 24, 2009 – 3:07 pm
DLF has launched the 2nd phase of its residential project in the heart of national capital, has sold all the apartments within 2 hours. The company sold all the flats, offered at prices of up to Rs 1.86 crore, though it has increased the selling price of its units by up to 26% compared to 1st phase.
TC Goyal, MD- DLF said, “Even with increased price, we have received tremendous response for our product. We initially planned to launch six hundred fifty units in 2nd phase, but due to huge demand we planned to offer more”.
The company has launched 2nd phase of the project at Rs 6,750 (2-BHK), Rs 7,500 (3-BHK) and Rs 8,000 (4-BHK) per square feet.
However, the effective rate would come down to Rs 5677, Rs 6363 and Rs 6820 per square feet respectively as DLF would offer a discount of five hundred rupees per square feet for timely payment and 8.5% rebate on down payments.
September 23, 2009 – 3:20 pm
Bringing character to a home is the latest mantra, at least in the luxury format.
Designer Mr Sabyasachi Mukherjee will work on six of the two hundred limited edition homes Samira Habitats is developing at Alibagh. These would cost upwards of one crore rupees each.
The designer will work closely with the project architect to ensure structural compliance of the masonry, while filling in with his craft and elements.
The purpose is to lend individuality and embed creativity that the designer exhibits in his apparel on the ground.
Further he said, “When I decided to extend my love for visual aesthetics, form and color to interiors, I chose Samira Habitats because of their offerings of finely crafted homes close to nature. Their eye for opulence and detail is a vision I passionately share”.
September 23, 2009 – 11:15 am
As the global slowdown pushed consumers to stay at home, retailers halted expansion plans and checked out of expensive high-street locations. Rental rates at high street locations across the world crashed, with the biggest crashes in Mumbai.
Among the exceptions were Bangalore’s two iconic retail hubs, Brigade Road and Commercial Street, and Kolkata’s Camac Street.
Mumbai’s leading highstreet locations—Colaba Causeway, Linking Road and Kemps Corner—also reported the largest declines in rentals across the world on a year-on-year basis—63.5%, 63%, and 60% respectively.
As per the annual global survey, Main Streets Across The World 2009, by global real estate consultants Cushman and Wakefield, over three-fourth’s of the world’s most prestigious shopping streets saw rentals crashing anywhere between 17% and 63.5%. Around 18%, however, recorded a growth.
September 22, 2009 – 3:50 pm
Photo by paul goyetteProperty firms are launching housing projects and raising pitch for ongoing ones in the hope of making decent sales going into the festive season. The mood among builders may be buoyant, but very few believe price hike is possible as demand is still hesitant and new supplies are hitting the market.
The festive season, which usually begins late September with the Hindu festival of Navratra and continues up to Christmas, often sees higher sales of property, cars and other durables.
Lodha developers is planning to launch two new projects, comprising apartments priced over Rs 1 crore, in Mumbai’s suburbs of Andheri and Thane. So far, the slow return of housing demand was scripted by lower-priced homes. But Lodha’s offerings indicate the builder is confident of getting buyers for high-priced segment as well.
September 21, 2009 – 4:47 pm
Dax Properties is setting up a 18-hole golf course-centric luxury retreat and township at Shadnagar near here which will entail investment of five hundred crore rupees.
The golf course will be spread over 130 acres on a 300-acre site earmarked for the Golf Retreat project, according to Mr Masood, MD of the Bangalore-based Dax Properties, part of Countryside Realtors.
Further he said, “We believe India has potential to serve golf lovers offering golf tourism in a majestic lush green environment where one could also buy luxury villas being developed on the property”.
September 21, 2009 – 4:46 pm
It is the best time to look around for a value buy in real estate. With lower price points in locations which were not within your wallet’s reach, buyers are scouting for good ‘value’ bargains at this time.
And with developers going big on affordable home launches, the timing may just be one of the best for buyers seeking a steal deal.
Anshuman Magazine, CMD of global real estate consultancy CBRE says that value buying is happening mostly in suburban locations as that is where the current supply is.
September 21, 2009 – 3:12 pm
Best Western India, the Indian affiliate of the international Best Western brand, opened its 13th operational property.
Branded as ‘Best Western Classic Avenue’, the 60-room, four-star luxury property is the second in Kerala after Kochi.
Best Western, among the world’s largest chain providing marketing, reservations and operational support to over four thousand independently owned and operated member-hotels in more than 80 countries.
According to Mr Sudhir Sinha, President and COO, Best Western India, occupancy rates have looked up by 20 – 25% to 65 %-plus since the lows registered during the recession period from September last.
Mr K. P. Sahadevan, Managing Director, Best Western Classic Avenue, said that an additional seventy rooms would be added to the property over the next three to four years to raise it to five-star category.
September 19, 2009 – 12:58 pm
Home buyers will now know if the land on which their building stands is free of outside claims after a recent RBI circular mandating builders mortgaging the land to raise money to disclose it in all advertisements and brochures.
RBI has asked lenders to ensure that all publicity material relating to the sale of real estate make a mention of the bank’s lien on the property so that home buyers are not kept in the dark.
RBI aims to prevent prospective buyers from being lulled into the belief that the flats they own are on ‘free-hold’ land through this move.
In Mumbai flatowner gets rights over his house through membership of a cooperative housing society. The land is not owned by the society unless it is transferred through a conveyance.
September 19, 2009 – 12:04 pm
The Naveen Patnaik Government’s failure to help companies take possession of land has delayed implementation of 14 mega industrial projects.
Top representatives from Posco-India, Tata Steel, ArcelorMittal India Ltd, Jindal Steel & Power Ltd, SSL Energy Ltd, Uttam Galva Steels Ltd, Essar Steel Orissa Ltd, Bhusan Power & Steel Ltd, Aditya Aluminium Ltd, Welspun Power & Steel Ltd, Vedanta Aluminium Ltd, Jindal India Thermal Power Ltd and Bhushan Steel Ltd attended the meeting.
The 14 projects had proposed investments of Rs 2 lakh crore but have invested Rs 21,031.71 crore only. Though 45,607 acres were required for the projects, the State Government had allotted them 14,131.90 acres till date.
Most companies have not been able to take possession of land for their respective projects primarily due to opposition from people living in the area who face displacement. The other issues were availability of water, supply of power, and rehabilitation and resettlement.
The Minister asked senior Government officials to resolve the problems facing the industries and also advised the companies to expedite land acquisition.
September 18, 2009 – 1:15 pm
The Chennai-based El Forge Ltd is selling its land at Thuraipakkam for ten crore rupees as part of its restructuring plan. The company, which made a loss of Rs 18 crore last year on a turnover of Rs 87 crore, will make a substantial profit on the transaction.
Company officials do not want to disclose the profit figure, pending conclusion of the transaction. The transaction is likely to be concluded in October and as such, the profits will be reflected in the accounts of the third-quarter.
The plant and machinery at Thuraipakkam have been moved to Appur, where a new facility has come up at an investment of hundred crore rupees.
Mr K. V. Ramachandran, Vice-Chairman and Managing Director, said that the company is also shifting machinery from its leased facility in Gumidipoondi to Appur. It also has plant in Hosur. Across these plants, the company has an installed capacity is 21,600 tones a year.
September 18, 2009 – 11:50 am
Building infrastructure requires huge investments and one of the effective ways of addressing this insurmountable obstacle is to unlock urban land values for infrastructure finance.
This is what experts contended at a day-long deliberation, jointly organized by the Ministry of Urban Development, Infrastructure Development Finance Corporation, India Urban Space Foundation and National Institute of Urban Affairs in collaboration with Wolfensohn Centre for Development at Brookings.
Participants from different countries highlighted the unresolved paradox in that for most large infrastructure projects — those related to transportation and communications — infrastructure investments push the value of urban land more than the cost of the project.
If land-value gains so accrued exceed project costs, why has it been so difficult to ramp up infrastructure financing? Hence, the policy question to find a proper way out to capture part of the gain in land-values for urban infrastructure finance through land-based financing.
September 17, 2009 – 1:59 pm
Indiareit Fund Advisors is setting up its second real estate fund with a corpus of five hundred crore rupees and expects to raise the money from investors by the end of this year.
The group had earlier floated Indiareit Fund, a $450-million real estate fund in 2006 and the proposed new Rs 500-core fund is over and above this. The Piramal Group has a presence in sectors, such as healthcare, diagnostics, glass manufacturing and real estate.
Said Ramesh Jogani, managing director and CEO, Indiareit Fund Advisors: “The Piramal Group is setting up a new domestic real estate fund and we are in the process of raising an overall corpus of around Rs 500 crore for it. This fund will invest in projects in Mumbai, New Delhi and Alibaug, a tourist town near Mumbai, and will be restricted to the residential segment. The new fund, apart from having a real estate focus, may also invest jointly with the existing fund.”
September 16, 2009 – 11:57 am
Unitech Developers are now concentrating on Kolkata. They present new stylish affordable residential apartment Unihomes at Kona Expressway Kolkata with lots of modern amenities. Unihomes offers one and two bedroom apartments that are suitable for contemporary urban living. A desirable and contemporary place within the reach of your pocket. Apartments Price is starting at eighteen lakh rupees and above.
September 16, 2009 – 11:46 am
Shriram Properties and Career Launcher have tied up to open a chain of 25 Indus World Schools in townships developed by Shriram Properties.
According to Career Launcher, a leading education service provider present in 200 locations in India, West Asia and the US, initially, Indus World Schools would come up by 2010 in Shriram Properties townships being developed in Bangalore, Chennai, Kolkata and Visakhapatnam.
Over the next three years, 25 such schools will come up in the southern and eastern parts of the country.
As per the agreement signed by the two partners, Shriram Properties will provide the infrastructure and Career Launcher will bring in its education expertise.
Indus World Schools are operating in Hyderabad, Indore, Mandi, Bhiwani, Raipur, Ahmednagar, Amritsar, Gurgaon and Noida.
September 15, 2009 – 4:53 pm
Omaxe Ltd. is going to develop a Hi-tech township spread over about 2700 acres in Lucknow the city of nawabs. Garv Buildtech Private Ltd, a subsidiary of Omaxe, has entered into a MoU to develop the said Hi-tech Township in Lucknow.
The Hi-Tech Township which is expected to yield estimated revenue of over Rs 2800 crores will be executed over a period of 5-7years and is slated to cater to the growing demand of quality living space in the city. The township is strategically located on the proposed Lucknow Ring Road in close proximity to Lucknow Airport and only half an hour drive from Hazratganj, center of Lucknow city.
Speaking on the announcement, Mr. Rohtas Goel, CMD, Omaxe Ltd said, “The hitech township is an attempt to recreate an entirely new living experience in the city of Nawabs. There is already substantial pressure on the existing infrastructure and this township will attempt to ease the demand by providing state of the art facilities in close quarters. This hi-tech township will indeed reinforce the commitment to develop and deliver a world class product to the new aspiring class of local residents and the migrants from other cities.”
September 15, 2009 – 4:52 pm
Housing Development and Infrastructure Ltd stated that it had agreed to offer about three hundred fifty crore rupees as income to be booked in the remaining quarters of this financial year to the Income Tax Department. This follows an Income tax raid on HDIL office premises and promoters’ residences. HDIL said that the income calculated by Income Tax Department was based on initial entries in its books of accounts mostly relating to current fiscal year, which the company would have irrespectively booked during the current financial year on completion of transaction and taxes paid. HDIL said that there was no hidden income, tax evasion, levy of penalty for previous or current year.
September 12, 2009 – 3:45 pm
The government is preparing guidelines for the participation of PE funds in housing sector under the Rajiv Gandhi Awaas Yojana. The scheme aims to make a slum-free India in five years with construction of over 10 lakh houses.
The government wants to connect with private funds to provide affordable housing to millions of households under the scheme.
As per IDFC Projects Equity managing director Sachin Johri, a large number of PE’s are willing to take stake in such projects to an extent of 40-50%.
September 11, 2009 – 6:17 pm
Mothercare, a UK retailer for kids and expectant mothers, is forming a JV with DLF. While the company would continue its existing franchisee agreement Shoppers Stop, it hopes that the new JV will give it greater control over its Indian operations and ability to expand quickly in one of the fastest growing economies.
Mothercare was committed to its ongoing expansion in the Indian market. The company has twenty-one stores in affiliation with Shoppers Stop. Mothercare had been in discussions with DLF and the Tata Group retailer trent for a possible equity partnership in India.
September 11, 2009 – 4:13 pm
Real estate firm Oberoi Constructions plans to launch its IPO early next year.
The IPO may happen in the first quarter of next financial year.
The Mumbai-based developer has “delivered” four million square feet of property and plans to add another four million square feet in the near future.
The share offering would be utilized to “fund growth” in the company. They already have a very decent land bank. They will use the cash for business and further land acquisition.
September 11, 2009 – 11:22 am
Tata Housing is in initial talks with 2 PE funds, Sequoia Capital and Atlanta Equity, to raise funds for its multiple affordable housing projects, signaling that the PE players were willing to return to the real estate projects that offer good customer demand and less risk.
Sequoia and Atlanta have begun talks with the Mumbai-based realty firm to pick up minority stakes into its existing low-priced housing project in Boisar near Mumbai and three other affordable housing projects expected to be launched.
The two PE players want to pick up stake in Tata’s projects because they are low-risk projects with decent returns, the person close to the development said, adding that PE players could expect a return of 20-30% in these projects.
Sequoia Capital had marked around $1.8 billion out of its total ten billion dollars to India. If a deal with Tata Housing goes through, it could perhaps be its first in the real estate. Ditto for Atlanta Equity, an Atlanta-based $109-million fund founded in 2007.
September 8, 2009 – 1:00 pm
Real estate developers cannot be fined for late delivery of possession of a flat to an allottee if no specific date of its delivery is mentioned in the contract.
The National Consumer Commission further held that the acceptance of the belated delivery of the flat in 1993 without protest renders it impossible for the consumer forum to award compensation to the buyer in this case.
September 5, 2009 – 2:35 pm
If we talk about rental system, it completely depends upon the age of building. The building of old age is not supposed to be as costly as the new building is. As we know that real estate do not comes into the category of depreciable asset, but still, the building with age factor more than twenty loses its rental market value. The fact behind it is the use of old fittings and loss of elegance with time. Most of the people prefer well maintained modern house for rental purpose.
September 5, 2009 – 2:34 pm
UP Government has declared some tax benefits besides simplifying process for approval of building layouts to increase SEZ investments.
During the meeting, it was planned that units being set up in SEZs will get a rebate on entry tax from June 30. These units will get entry tax wavier like export oriented units. Arrangements have been made for fast approval of layout of buildings.
Unit Approval Committee headed by Noida and Greater Noida officials will approve layouts.
Officials were also ensured that VAT deposited by units set up in SEZ was refunded as these units are exempted from VAT w.e.f. january last year.
