Tag Archives: Real Estate Developer

Delhi Slums Propose Huge Business To Realtors

August 7, 2008 – 1:23 am

Delhi Development Authority (DDA) is firming up an elaborate plan for slum redevelopment projects in the capital. It has appointed consultants to prepare reports on the redevelopment of 30 slum clusters.
The developer is expected to build houses for the slum dwellers and in return gets a portion of the total space for development which it can sell at market rates. The developer gets higher floor area ratio (FAR), i.e., permission to build more floor area on a piece of land in a slum redevelopment project, and thus books higher margins in these projects.
DDA vice chairman Ashok Kumar said, “We will invite private developers to take up slum redevelopment projects once we receive the consultants’ report. A lot will depend on the viability of the projects. In cases where a cluster is not viable on its own, we may consider clubbing two or three clusters”. DDA has appointed a handful of consultants for different slum clusters and expects them to submit reports in a month or two.
Delhi has around 900 slum clusters housing almost a fifth of its population. The initiative to redevelop 30 clusters is a major task for the government and urban development agencies. This is the first time the Delhi government is going to involve private developers in these projects. Several real estate firms, including India’s largest real estate developer DLF, Omaxe and Raheja Developers, have shown interest in slum redevelopment projects and are waiting for the government’s nod.
The slum redevelopment projects in the capital will be on the lines of similar projects being undertaken in Mumbai’s Dharavi or other slum areas. Many realty firms, including HDIL, Akruti and Orbit, have made fortune through slum redevelopment projects in Mumbai. Access to cheap and strategically located land is the biggest advantage in such projects, which gives developers a margin of as high as 80%, compared to 35-40% in other realty projects.
As against Mumbai where the slum clusters are spread out in size, in Delhi the size of the slums are small and are therefore relatively less attractive. Nevertheless, Delhi’s slum redevelopment projects too are likely to offer high margins and thus attract private developers’ interest.

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Vipul Ltd First Quarter Financial Result

July 26, 2008 – 9:03 am

Vipul Ltd India’s leading real estate developer, has recorded revenues of Rs 81 crore for the quarter ended 30 June 08 an increase of 5% from seventy seven crore rupees in Q1FY08. EBITDA for the Q1FY09 stood at Rs 15.38 crore, up by 21 percent as compared to Rs 12.74 crore in the corresponding period previous year. Net profit for the year stood at Rs 8.89 crore in Q1 FY09 as compared to Rs 8.00 crore in Q1FY08. The EPS for Q1 FY09 stood at Rs 1.48 compared to Rs 1.39 in the corresponding quarter last year.

The Company had currently announced the launch of Vipul Gardens, a Group Housing project at Dharuhera. The project is strategically located on NH-8 in Dharuhera, a half hour drive from Gurgaon. Vipul World Dharuhera would have a total built up area of approx. One Million Square Feet and will showcase six hundred thirty five apartments with a choice of living between 2 & 3 bedroom apartments.

Vipul Limited has already delivered about 6.5 Million Sq. Ft. and is presently working on an area of about Ten Million Square Feet in Gurgaon, Manesar, Dharuhera, Ludhiana, Bhubaneswar and Nagpur.

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Slowdown Of Real Estate Market Affecting Deals

July 10, 2008 – 5:30 am

With slowdown hitting the real estate sector, land/property deals appear to be falling like ninepins. The latest deal to come unstuck is one involving the K Raheja Universal group and Lupin.
According toSources the negotiations between the two parties for part of Lupin’s land at Boisar in Tarapur and Thane district, has fallen through primarily because of the existing insecurity in the real estate market.
While officials from K Raheja Universal did not respond to a media query on the deal, Lupin’s spokesperson, replying to an email questionnaire, said: “Lupin is an innovation-led transnational pharmaceutical company with no interest in real estate.”
Incidentally, Lupin had some years ago sold its Bandra Talkies property to a real estate developer. An analyst with a foreign brokerage house covering the firm said Lupin had, at one time, large tracts of land. “The real estate market then crashed. Slowly over the years, Lupin managed to sell most of its properties. It could well be considering the same now,” he said. Lupin has entered the league of the top five Indian pharmaceutical firms. The company hopes to be a $1 billion company by the end of the current financial year.
It is not just Lupin alone which is having to bear brunt of the real estate downturn. Other deals which have hit the dirt in the recent past include Orbit Corporation’s deal for a six hundred crore rupees property with Kotak Realty Fund and Citra Developers and Rs 676-crore bid for the 134 crore Pal-Peugeot land at Dombivli-Kalyan.

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DLF To Spend Rs 500 Crore

July 3, 2008 – 7:03 am

After losing more than 71% of its market cap in the past six months, the country’s largest real estate developer DLF has announced a share buyback.

The company is likely to spend around Rs 500 crore on the buyback programme, which will result in around 1 crore shares (equivalent to 0.6% equity stake) getting extinguished.

The quantum and the price at which the shares will be bought will be decided in the board meeting slated for July 10. The company is likely to buy shares from the market over a period of several months, stretching to a maximum of six months, at market determined prices. Read More »

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Vipul Limited Posts Net Profit Of Rs41.69 Crore

July 2, 2008 – 4:43 am

Vipul Ltd, India’s leading real estate developer, has recorded consolidated revenues of Rs 288.49 crore for the period March 31, 2008 an increase of 35% from Rs 214.37 crore in FY07. EBITDA for the FY08 stood at Rs 73.76 crore, up by 7.87% as compared to Rs 68.38 crore in corresponding period last year. Net profit for the year stood at Rs 41.69 crore, as against Rs 41.57 crore in FY07. The EPS for FY08 stood at Rs 7.28.

For Q4FY08, Vipul Limited recorded revenues of Rs 81.07 crore, an increase of 49% from Rs 54.29 crore in Q4FY07. EBIDTA stood at Rs 20.23 crore, against Rs 22.42 crore in Q4 FY07. The net profit for the period stood at Rs 9.25 crore. The non annualized EPS for the quarter was Rs 1.81. Operating margins in the quarter stood at 25%.The net margins stood at 11.41%.

Vipul board at the meeting held on June 30, 2008 has recommended the dividend at 17.50% i.e Rs 0.35 per equity share of Rs 2 each for the year 2007-2008, subject to the approval of the shareholders.

Till now Vipul Limited delivered about 6.5 million sq ft (including JV’s) and is presently working on an area of about 10 million Sq. Ft. in Gurgaon, Manesar, Dharuhera, Ludhiana, Bhubaneswar and Nagpur.

Presently Vipul Ltd has a land bank of more than 1400 acres. The company has its presence in all verticals of real estate- Commercial, Residential, Hotel, Office Space and SEZ, which include all major cities like Gurgaon, Manesar, Dharuhera, Mohali, Amritsar, Ludhiana, Bhubaneswar, Hyderabad, Nagpur, Siliguri and Kolkata.

During the year, the company received capital infusion worth Rs. 234 crore through stake sale of 14.95%, to a USA based financial institution Wachovia Corporation.

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Standardization Of Real Estate Sector

June 20, 2008 – 2:49 am

It is now become essential to standardize real estate. Builders and developers are not averse to the idea of a regulator in the real estate sector.Credai president Mr. Kumar Gera said that developers want a regulator to discourage the dishonest players from entering the sector. Mr. Gera further said that Credai has made a number of representations to the government in this regard. Read More »

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Indian Company Plans IT Park In Lanka

June 12, 2008 – 2:19 am

City-based real estate developer PS Group is setting up an IT park in Sri Lanka with an investment of $80.4 million.
The company has entered into a joint venture with Sri Lanka Institute of Technology and Infinity Parks Ltd, another city-based real estate company, to develop this project.
Mr. Pradip Chopra, chairman and managing director of PS Group, said, “This is our first international project and we feel there are lots of such opportunities in neighboring countries. This IT park project will provide direct and indirect employment to 20000 and 80000, respectively”. Read More »

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BPTP Pays Rs 1000 Crore For Noida Project

June 10, 2008 – 12:57 am

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. Read More »

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India’s Only Second To US In IPO Debacle

May 31, 2008 – 5:30 am

After the US, India is worst-hit market when it comes to the postponement of IPOs in the first quarter of 2008. Out of the twenty four billion dollar worth of IPOs that were postponed, US accounted for $6.12 billion while the figure for Indian companies stood at $5.98 billion. The decision to defer or shelve IPOs has been taken because of market sentiments and the global credit crisis. Read More »

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Phoenix Mills to purchasing Rs 8 bn land

May 13, 2008 – 5:23 am

Phoenix Mills is in the final stage of acquiring three thirty acre plots in Ahmedabad, Hyderabad and Nashik for around eight billion rupees. The company plans to develop malls and entertainment zones on these lands.

It is learnt that the deal is likely to be sealed in the next few weeks.
The Mumbai-based real estate developer is developing Market City Projects, spread across 21.4 million square feet, in Mumbai, Bangalore, Chennai, Pune, Raipur, Agra and Indore.
The company is seeking to establish long-term relationships with developers in its bid to achieve a pan-India footprint in three years.

According to an estimate, the country is all set to have over 500 malls by 2010 from just three malls in 2000. Roughly 300 million sq ft of quality retail space will be accumulated by 2011.

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