BPTP Pays Rs 1000 Crore For Noida Project

Real estate developer BPTP Group has paid Rs 1000 crore to the Noida authorities as the first instalment for its ambitious 95-acre project.

The privately held developer said that the rest of the payment, of Rs 250 crore, would be made very soon.

DNA Money had last week reported about BPTP making the payment early this week.

Asked for the funding details, Mr. Sudhanshu Tripathi, director, BPTP told DNA Money, “We have not hived off any stake in the Noida project as of now.”

According to him, BPTP has used its internal accruals and the investments received from private equity investors in the past for other projects to make the payment.

In April, Citi Property Investors had invested about $160 million (Rs 640 crore), in the group for a 40% stake in the latter’s special economic zone projects.

BPTP had outbid realty majors DLF and Omaxe to bag the Noida project in March, involving a total land acquisition cost of around Rs 5000 crore.

BPTP was dangerously close to the extended deadline of June 13 for the first instalment.

Failure to honour the deadline could have led to the deal being cancelled, officials in the Noida authority said.

BPTP sought an extension to pay the first instalment after the foreign banks from which it had arranged loans didn’t honour their commitment, Credit Suisse analyst Anand Agarwal wrote in a note.

Many realtors are facing the challenge of raising funds for their projects, given the current downward spiral in the real estate market and the negative sentiment thereon.

Suman Memami, research analyst at Religare Securities, added that liquidity crunch is causing builders to postpone new launches and also private equity players are in a “wait & watch mode.”

The construction cost of the financial city planned will be around Rs 3,000 crore and the total cost of the project is expected to be around Rs 9,000 crore.

BPTP expects office rentals in Noida to be more than its rival city Gurgaon upon completion.

4 Comments

  1. Posted June 11, 2008 at 3:57 am | Permalink

    The biggest land deal of the country took place in Noida ,a consortium led by Delhi-based Business parks and Town planners(BPTP) bagged a 95 acre commercial plot in Noida sector 94 for a mind boggling Rs 5006 crore from the Noida authority. According to a Noida authority spokesman, the permitted floor area ratio for development of the site will only be two. Only an area of 8.2 million sq ft will be allowed to develop. At this rate, the per sq ft construction right has cost BPTP a whopping Rs 6,100.According to an official communication, the New Okhla Industrial Development Authority (NOIDA) floated auction bids for the plot in February 2008. It received four bids and March 03, 2008, the bids were assigned to a consultant to study the technical feasibility and financial viability of the bids.The consultant submitted its report to the authority in which one of the bidders Ansal (API) was disqualified. The remaining three bidders – Omaxe, DLF and BPTP – were qualified.The commercial complex is strategically located close to Delhi. It will be around 16 km from Connaught Place and around 10 km from south Delhi via the DND flyover.For more view- realtydigest.blogspot.com

  2. Posted June 17, 2008 at 3:27 am | Permalink

    BPTP, Omaxe and DLF all of these three company are doing good job for real estate industry in delhi ncr region.

  3. Claudiu
    Posted June 19, 2008 at 5:56 am | Permalink

    Long and Short Term Rentals Help La Costa “Ride the Storm”
    As a small Marbella Real Estate agency, the last 12 months have been very difficult. Property sales have gone down significantly as over supply and the credit crunch (amongst other reasons) have turned the Spanish property market upside down. Every day we hear of another local Estate Agent which has had to close, and we are not just talking about the smaller agencies, the larger well known Property companies on the coast are also being forced to close branches and lay off staff.
    We are perhaps fortunate in that we provide a “complete property solution” to our clients by offering rental , property maintenance and project management and renovation services. This means that we do not rely entirely on selling property as the rentals and property maintenance provide a steady income stream when there are no sales being made.
    The long term rental market seems to very buoyant at the moment as many people are preferring to rent a property before committing to buying and are also waiting to see if property prices drop. The majority of the enquiries we receive from our website -and other property portals in which we have listed our properties- are for long term rentals with sales leads few and far between. We won’t become millionaires with long term rentals, however, it does help us to pay the bills and keep those ever threatening overheads under control.
    Our main problem at the moment is finding enough good listings to meet demand. We specialize in property in the Rio Real and Los Monteros area and have now rented out all the good properties we had available and are desperately trying to find more properties to satisfy demand, in particular, we have found that three bedroom properties are scarce and have had to turn down clients on various occasions due to lack of this type of property.
    Short term and holiday lets also provide some steady income, especially in the higher occupancy months (May to October). The only problem with this type of rental is that it involves hours of work for relatively small returns as the properties have to be cleaned and maintained and you have to be available 24 hours day in case tenants have a problem with the property they are renting.
    We initially offered short term rentals as an added service to the owners of the properties we manage, however, due to the present market conditions, we have decided to push holiday rentals a little more this year by actively advertising on various specialized web portals and magazines. Although competition is fierce- with many people who purchased property on the coast in order to flip it over for a quick profit now trying to rent them out to try and cover expenses – we are fortunate to have a small but high quality portfolio of properties for short term rental. We have luxury villas that rent out for €6000 a week in the summer, 2 Bed apartments which are literally on the beach, apartments overlooking golf courses. Because of the quality of these properties and the areas they are in, they are considerably easier to rent out than properties in less desirable locations which have been flooded with new construction.
    There is no doubt that we are in for a rough ride until the market picks up again, but until then we will continue to concentrate on the rental side of our business which will continue to provide an interesting source of leads for when property sales start to pick up again.

  4. Claudiu
    Posted June 19, 2008 at 5:58 am | Permalink

    Carrying out Proper Research Before Buying Property in Spain
    Buying property in Spain, or in any other country for that matter, can be a traumatic experience if you do not do the ground work beforehand. Many people embark on their search for the ideal holiday home or retreat without carrying out adequate research about their chosen area or country. It is no surprise that these potential property purchasers find themselves overwhelmed with information when they go on inspection trips to view properties.
    Sometimes it is even worse because they actually purchase property without actually knowing anything about the area, running in to all sorts of “unpleasant surprises” which make the purchase of their supposed ideal home an absolute nightmare. Obviously, there will always be problems along the way but these can be significantly reduced with some initial research.
    We always recommend that anyone thinking about buying property in Spain take the time to carry out some research. Once you have established the type of property you are looking for, you need to decide what area of Spain you would like to buy in, this is really important because you don’t want to find yourself in a town or Coastal area which does not meet your expectations. Nowadays, with the abundance of information available on the Web, one can collect vast amounts of information without having to leave the comfort of their living room. It is so easy to type a few keywords into Google and obtain the details that could make all the difference.
    There is no doubt that information is power – if you’re fully informed, it will make it a lot easier to narrow down your options. Try and find out about schools in the area, hospitals which are within easy reach, beaches, golf courses, roads and public transport infrastructure…. Once you are clear on the area, you can then begin to look for properties on the internet that match your needs. Searching for properties in areas like Marbella can turn up literally thousands of results. So what’s the best way to go about this? You may notice that many of the properties listed on the Costa del Sol are available from various agents as it is rare that owners grant exclusivity to a single agent. We would personally recommend the use of the largest Spanish portal, Kyero.com. You can find properties listed by more than 1000 agents throughout Spain and can refine your searches to specific locations. Choose one or two agents to contact-the important thing is to find a reputable and well established agent who can provide you with expert local knowledge and a personalized service. If you know anyone who has bought in Spain or has property in the area you are interested in you might want to ask them to recommend an agent as this is one of the best ways to find a good agent.
    With your preliminary research through the internet and a local agent to help you narrow down your search, you stand a very good chance of finding your dream property.
    Researching your chosen market is just one of 10 property buying tips we suggest to our clients.

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