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Ambuja Realty Acquires RMZ’s Ecospace Business Park for Rs 300cr

2011-10-25T01:54:00.000-07:00

In one of the largest real estate deals in Kolkata, Ambuja Realty has acquired the RMZ’s Ecospace Business Park in New Town in Rajarhat for little over Rs 300 crore. The acquisition will provide Ambuja Realy a large chunk of premium commercial property adjacent to its existing one, Ambuja Realty Campus. The project, which is 80% complete, is spread over about 9 lakh square feet constructed area. International property consultant Jones Lang LaSalle facilitated the deal. JLL said the deal signified the importance of Rajarhat in Kolkata’s business landscape.

Ambuja Realty chairman Harshavardhan Neotia said that RMZ and Ambuja Realty had got two adjacent plots of land in Rajarhat. “Even our architects and structural consultants are the same. Therefore, we decided to call the entire property Ecospace Business Park. Their end is called the RMZ campus and ours is called the Ambuja Realty Campus. Therefore, the acquisition will only help Ambuja Realty in consolidating its position in the upcoming area.”

The opportunity to acquire the company emerged as RMZ and AIG, who were managing the RMZ Campus, wanted to exit, he said. “Given that we are already housed at Ecospace and have part of the campus, we responded affirmatively to acquiring the other part, as well,” he said. JLL said with the acquisition, Ecospace became one of the largest non-SEZ office spaces in Kolkata, offering nearly 19 lakh square feet of ultra-modern and environmentally sustainable business space. According to a person close to the deal, the cost of the realty space after completion of the project would be around Rs 4,000 per sq feet, which is very competitive.

Rajarhat area has emerged as one of the most attractive area in Kolkata as it is close to the airport. Besides, a large chunk of land is available for the development. JLL MD (Kolkata) Mayank Saksena said Rajarhat is Kolkata’s brightest rising star in terms of real estate growth, with both the commercial and residential segments holding immense possibilities for developers, occupiers and real estate investors alike.

Govt Provides Extra Time to 37 SEZ Developers

2011-10-25T01:38:00.000-07:00

The government has given more time to as many as 37 special economic zone developers, including Navi Mumbai SEZ, DLF Commercial Developers and Tata Consultancy Services, to execute their projects.
At a meeting on September 19, the Board of Approval (BoA) headed by Commerce Secretary Rahul Khullar also allowed five SEZ developers to surrender their projects. The BoA is a 19-member inter-ministerial body that deals with Special Economic Zones (SEZs) and related issues.

However, the developers surrendering their projects have to obtain a certificate from the respective Development Commissioners that “they have refunded all the tax/duty benefits availed under SEZ Act/Rules,” a senior Commerce Ministry official said.
SEZ developers, including Maharashtra Industrial Development Corporation and Benchmark Realty, had approached the BoA to surrender their projects.
According to an industry expert, uncertainty over whether new SEZs will be eligible for tax exemptions — which are proposed to be confined to existing units in the latest draft of the Direct Taxes Code Bill — has dampened interest in the tax-free enclaves.

Other developers that got more time to execute their projects include Raheja SEZ, Parsvnath SEZ, and Wockhardt Infrastructure Development.
It has deferred the extension of two applications — Peninsula Pharma Research Centre and Meditab Specialties — as the issues were sub-judice before the apex court.
The BoA also approved three new proposals, including one for setting up a sector-specific SEZ for the petroleum and oil and gas industry in Visakhapatnam.
Regarding the revision of guidelines for power generation, transmission and distribution in SEZs, the board gave two weeks’ time to the Department of Revenue for their comments.

Under the SEZ Act, SEZ units get 100 per cent tax exemption on profits earned in the first five years of operation, a 50 per cent exemption for the next five years and another 50 per cent exemption on re-invested profits in the following five years.
SEZ developers, on the other hand, get 100 per cent tax exemption on profits for 10 years, which they can choose to invoke within the first 15 years of operation.
Merchandise exports from the 143 operational SEZs in the country totalled Rs 72,255 crore in the April-June period, an increase of 23 per cent vis-a-vis the same period last year.

Less Fireworks for Builders This Festive Season

2011-10-25T01:36:00.000-07:00

The period around Diwali is usually the best time in the building trade, but this festive season a triple cocktail of volatile markets, double-digit interest rates and poor consumer confidence in a slowing economy has hit sales volumes, portending hard times for India’s real estate sector. Some brokers and market experts are bracing themselves for a 25-30% drop in transaction volumes in the country’s top six property markets during the October-December busy season, which, if it happens, could trigger a competitive spiral of discounting to get rid of mounting inventories and restore depleted cash levels.

But builders are holding on to price levels while buyers, reluctant to book flats at current price levels and interest rates firmly in double digits, remain convinced that it’s only a matter of time before the penny drops. Which side will blink first is still not certain, even though some builders concede all is not hunky dory. “There may not be much of a light for developers during this Diwali,” said Niranjan Hiranandani, chief of Mumbai-based builder Hiranandani Group. “It may not turn out to be a good one in terms of sales activity.”

Property developers are trying their best to woo buyers with festive offers, although these have failed to have much of an impact so far. With high inflation eating away at their earnings and financing costs high, buyers are looking for a significant correction in property prices rather than some festive season freebies. “Builders need to accept reality. This acceptance will lead to price correction and revival in volume,” said Pankaj Kapoor, managing director of Liases Foras Real Estate Rating & Research. Kapoor attributes the drop in sales volumes to steep property prices, rising interest rates and poor supply of socalled ‘affordable housing’ projects.

“Usually, during the festive season, prices firm up and there are new launches as well. But this season, both the inventory and prices of residential properties have remained static,” said Samarjit Singh of Agni Property, a property brokerage. The National Capital Region (NCR) comprising the satellite towns of Noida, Gurgaon and Faridabad bordering Delhi, which turned in good sales numbers in the past two years, is facing supply constraints.

This is particularly true for Noida, which has seen a slew of regulatory actions prompted by farmers’ agitation over land acquisition. Singh says a lot of developers are repackaging their previously unsold inventory with special discounts to push sales. Lodha Developers in Mumbai and Ansal API in Delhi are among the builders who are repackaging their older inventories with newer discounts. “As far as sale of plotted land and mid-income housing is concerned, demand is intact in NCR and good sales traction is expected during this season,” said Anil Kumar, CEO of Ansal API. “However, sales may take a hit wherever there are issues of land title.”

DLF Stocks Fall on Sebi’s IPO Probe

2011-10-25T01:33:00.001-07:00

Shares of India’s largest real estate player DLF fell over 2% on the bourses after capital market regulator Securities and Exchange Board of India (Sebi) said it would probe the allegations a Delhi businessman against the realty major. The stock fell by 2.7 % to end Friday at Rs 225 on BSE, after plunging by as much as 4.3% during the day. On the National Stock Exchange, the scrip closed 2.3% down, also at Rs 225.

The capital market regulator had on Thursday said it would investigate certain allegations levelled against DLF Sudipti Estates Pvt Ltd by one Kimsuk Krishna Sinha. “The company’s operations may not witness any significant impact due to Sebi’s investigation but its goodwill could be impacted,” said a real estate consultant, adding things would become clearer once Sebi’s probe concludes. Sinha had accused DLF and Sudipti Estates of duping him of Rs 34 crore.

In a draft prospectus filed for its public issue in May 2006, DLF had mentioned Sudipti as its associate company. But it was later withdrawn and a fresh prospectus filed in January 2007, this time without the Sudipti name. Sinha claimed that Sudipti, DLF Home Developers and DLF Estate Developers were sister concerns and part of DLF Group, but DLF said Sudipti is a separate legal entity owned and controlled by different individuals. The Delhi High Court had in July directed the regulator to look into the complaint and pass an order within three months.

Omaxe Shelves Plan to Develop 10 Lakh Affordable Houses at an Investment of Rs 80,000cr

2011-09-26T03:49:00.000-07:00

Realty firm Omaxe has shelved its Rs 80,000 crore investment plan aimed at developing 10 lakh affordable houses across the country over a period of five years. “The project could not take off after the slowdown impacted all the developers in 2008. We tried to develop some houses at some locations… The project is shelved now,” said Rohtas Goel, chairman and MD, Omaxe. In May, 2008, the company had announced an elaborate plan to build 10 lakh affordable houses for low-income consumers across tier II and III cities, at a price ranging between Rs 3 lakh and Rs 15 lakh, over a period of five years. The National Capital-based developer had tied-up with farmers in Gujarat and Maharashtra to acquire land for developing the affordable houses, he added.

“However, it did not finally materialise,” Goel said. He, however, declined to divulge if the company had put in any money in initiating the project. The 2008-09 global financial crisis had hit the realty sector hard and the same is expected again under the current economic environment. Omaxe had formed a subsidiary, National Affordable Housing and Infrastructure Ltd (NAFHIL), for the low-cost housing project and had also initiated an international design competition, besides publishing advertisements. Later, the company divested 51 per cent stake in NAFHIL to a promoter group firm. The company had initiated dialogues with the state governments in Uttar Pradesh and Madhya Pradesh in February 2008, to implement the affordable housing project. It had also placed a concept plan for consideration before the Union State Minister for Urban Housing at that time.

Goel had said Omaxe would construct 800 million sq ft to develop 10 lakh housing units of size starting from 300 sq ft to up to 1,500 sq ft. About 20,000 acre of land would be required to develop the project. The company had planned to develop 5,000-10,000 housing units at every location over an area of about 100-200 acre. It had said it would sell these units through lottery system and would charge only Rs 100-150 per sq ft as profit. It had identified Indore as the first location for the proposed project with plans to develop 10,000 low-cost homes at a 200-acre township at an investment of about Rs 1,000 crore. It planned to offer the flats, sizes of which would have started from 350 sq ft, for Rs 4-10 lakh. Similar projects were also planned in other locations such as Raipur, Bhopal, Bareilly and Allahabad.

Source:http://www.indianrealtynews.com

Shahrukh Khan to Launch Five Star Hotel in Kerala

2011-08-05T23:21:00.001-07:00

Property for Sale in Darbhanga Bihar...Property for Sale in Darbhanga Bihar Please contact :08757137736 Email:globalvisionedu@gmail.com

2011-08-05T01:20:00.000-07:00

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2011-08-05T01:19:00.001-07:00

Properties available in Vasai

2011-06-26T20:02:00.002-07:00

Looking for plot,Shop,Office,for sale rent
Please Contact:

GAYATRI REAL ESTATE AGENTS AND CONSULTANTS
Mr. Patrick S Menezes
Shop no.6, Pulikat C.H.S.L.
Nr. ST.Augustine High School ,
Stella, Vasai (W)
Mob:9324233124, 9881123112

Phone: 0222384024

Email:info@gayatrirealty.com
Website: http://www.gayatrirealty.com

Real Estate Agent in Kamothe

2011-06-26T20:02:00.001-07:00

Kamothe-real help is at your service for all your real estate related needs at Kamothe,the fast developing node of Navi Mumbai on Mumbai-Pune Expressway. In buying,selling or properties - residential,commercial or a plot of land,we facilitate and assist you to get the best and hassle-free deal in Kamothe

Contact Name:Mr.Prakash M.H

Om Sai Real Estate
Plot No.3
Sector 12
Kamothe
Navi Mumbai- 410209
Mob: 9320677797/ 9869677797
Email id: info@kamothe-realhelp.com
Website: http://www.kamothe-realhelp.com

Real Estate Agent in Bhayander West

2011-06-26T20:02:00.000-07:00

Welcome to Bhayander,just off the western suburns of Greater Mumabi and adjoining the economically fast upcoming township of Mira-Bhayander administrated by its own municipal corporation,MBMC.It is well connected to the metropolis by the western railways suburban train and western express highway.The upcoming thane Bhaynder rail corridor will link to the central suburn more conveniently. For all your real estate needs here,we offer our professional assistance and assure you of hassle-free service

Contact Person: Mr.N.K.Agarwal

Om Shanti Estate agency

Shop No.8, Chiranjiv Enclave,
90 feet Road,
Bhayander (W)
Mob: 9987689998/9223694810

Emailid: info@bhayanderwest-realhelp.com
Website: http://www.bhayanderwest-realhelp.com

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2011-06-26T20:01:00.001-07:00

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Real Estate Agent in Kamothe

2011-06-26T20:01:00.000-07:00

Kamothe-real help is at your service for all your real estate related needs at kamothe,the fast developing node of Navi Mumbai on Mumbai-Pune Expressway. In buying,selling or properties - residential,commercial or a plot of land,we facitate and assist you to get the best and hassle-free deal in Kamothe

Contact Name:Mr.Prakash M.H

Om Sai Real Estate
Plot No.3
Sector 12
Kamothe
Navi Mumbai- 410209
Mob: 9320677797/ 9869677797
Email id: info@kamothe-realhelp.com
Website: http://www.kamothe-realhelp.com

Upcoming Commercial business tower in Andheri

2011-06-26T20:00:00.000-07:00

BUSINESS BAY an iconic tower dedicated to commerce and enterprise provides the perfect launching pad for your business venter. An ultra modern structure with a contemporary glass and metal façade it is brought to you by the reputed bright builders. Blessed with the strategic location, imposing outlook and top notch amenities, BUSINESS BAY creates a value added identity for your enterprise. With the proposed Metro running nearby, it carries your business confidently into the future.

BUSINESS BAY is planned to give the maximum output from the space. Each fully loaded premises offer the best of exposure, space and orientation. It creates the perfect ambience for the dynamic enterprise.

Common Amenities:

MCB and ELCB provided. Emergency Generator Back ups
Modern fire fighting equipments
Potable treated water supply from Municipal Corp.
Designer World Class Elevation For Each Wing
Concealed copper wiring
Substation For HT Power supply from Reliance energy
Common Toilet in Stilt Area

Features:

BUSINESS BAY successfully addresses the expectations of the entrepreneur.
It’s parking comprises basement, Ground and stilt level to create adequate hassle-free parking.
The adjoining cafeteria and outdoor seating brings a refreshing change and helps to unwind.

For Booking Contact:
Address:
Bright Builders And Developers
Shop No. G-9, Anna Nagar CHS Ltd.
Opp. Chitrakut Groung,
New Link Road,
Andheri(W)

Tel : 9869070801

Visit:http://www.brightbuildersanddevelopers.com

DLF converts Mumbai mall project into residential one Posted by paragjani on February 27, 2010

2011-06-26T19:51:00.000-07:00

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 risen 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.
Source:http://www.business-standard.com/india/news/dlf-converts-mumbai-mall-project-into-residential-one/386894/

Realty Firm Supertech to Develop 255 metre Residential Tower in Noida

2011-03-15T03:14:00.000-07:00

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Realty firm Supertech today will invest Rs 600 crore to develop a 255 metre tall residential tower in Noida. The company will offer a total of 1,326 housing units with prices of up to Rs 2.25 crore in the tower that it claims will be the tallest in North India. “The project, North Eye, will be the tallest in entire region with 60 floors and 255 metre height. We will invest Rs 600 crore to develop the project,” Supertech chairman and managing director RK Arora told reporters.

Asked about the source of funding, Arora said it would be largely met through internal accruals and advances from customers. The company is in talks with private equity players to raise funds. When asked at what prices the housing units will be sold, Arora said: “We will offer these for Rs 7,700 per sq ft. The prices will start from Rs 35 lakh and will go up to about Rs 2.25 crore.” The project will house 186 large flats and 1,140 studio apartments. While the sizes of the flats will vary between 1,650 sq ft and 3,350 sq ft, the studio apartments will be constructed with a fixed floor size of 520 sq ft.

Arora said the company is targeting young professionals for studio apartments. Supertech will hire an operator to manage the tower and is in talks with global hospitality brands such as Radisson and Marriott for this, he added. The National Capital Region-based company is currently developing a number of projects across various cities such as Noida, Greater Noida, Meerut and Moradabad.

Govt Plans to Widen Real Estate Definition in its FDI Policy

2011-03-15T03:09:00.000-07:00

The government plans to widen the definition of real estate in its foreign direct investment (FDI) policy to include consultants, advisers , valuers and brokers, a move experts say could restrict entry of foreign players in these specialized services. The department of industrial policy and promotion, or DIPP, has circulated a draft note for comments of various ministries on the proposal.

“The idea is to explicitly state what all services does the definition (of real estate) cover,” a government official privy to the discussions said. The wider definition is likely to be included in the half-yearly update of FDI policy due to be released by the end of this month. The current FDI policy lacks clarity on several issues, including what constitutes real estate. The policy prohibits FDI in real estate business but allows 100% foreign investment in construction and housing development. In construction and housing, the FDI is subject to several riders including a three-year lock-in period, minimum capitalisation of $10 million for wholly-owned subsidiaries and $5 million in case of joint ventures.

The government hopes to clear the air by defining the scope of the real estate business. According to the proposal, consultancy or advisory services related to locational space and property issues of any kind will be included in the real estate business. Agents, advisers, brokers and consultants dealing with any facet of residential, commercial and industrial property will also be included if they offer certain services. To preclude any chances of misinterpretation, the policy will mention a comprehensive list of services.

The move follows queries received by the Foreign Investment Promotion Board and DIPP from foreign investors asking if FDI was permitted in broking services in the realty sector. Experts, however, say the changes, if accepted, could make the FDI policy more restrictive. “This would be a retrograde measure particularly at a time when the country needs foreign direct investment,” said Akash Gupt, executive director at PwC. The proposal could affect even the existing players who largely offer advisory services.

“It will have a dampening impact on the services sector as the lot of players who are waiting to tap the booming sector will have problems entering the country” said Anuj Puri, chairman and country head at real estate consultancy firm Jones Lang LaSalle India.
Some of the players said the restrictions made no sense for service providers. “We do not control liquidity in any way, nor do we make investments in the sector,” said Anurag Mathur, managing director at Cushman & Wakefield. “We just offer our advisory services to the sector.”

IT Department Keeping Watch on Sources of Real Estate Funding

2011-03-15T03:06:00.000-07:00

Suspecting the use of black money to finance deals in the country’s booming real estate sector, the Income Tax Department is keeping close tabs on the sources of funding for developers’ lucrative projects. “The focus of the Income Tax Department is real estate developers as the department has received many complaints of the involvement of black money in these deals. There is a large amount of money involved in the sale and purchase of land and huge income is generated,” a Finance Ministry source told PTI.

Recently, a well-known Mumbai developer admitted to undisclosed income of Rs 200 crore. In addition, Rs 100 crore was recovered from a Surat-based real estate company in a separate case.
Besides real estate, other sectors which are under the scanner of the Income Tax Department include mining, civil construction, education, jewellery and manufacturing, the source added. In 2009-10 and 2010-11, the I-T Department unearthed unaccounted income of over Rs 15,000 crore in its search and seizure operations.

In addition, around Rs 8,000 crore was detected by the Income Tax Department during surveillance of firms and individuals that suppressed their income during these two financial years. “In January, Rs 73.8 crore cash was seized by the department in the survey operation, the highest-ever cash seizure in any month,” it added. The Income Tax Department is also keeping a close eye on ponzi financial schemes, where the money from new investors is used to pay existing investors.

“This is a new area which the Income Tax Department is tracking closely. Many such schemes are under the scanner of the department,” the source said. Recently, the I-T Department recovered Rs 300 crore of unaccounted money raised through such schemes from Delhi and West Bengal-based commodity traders.

Indiareit, Paranjape in Talks to Sell Stake in Pune SEZ

2011-03-03T07:41:00.000-08:00

Indiareit Fund Advisors Pvt Ltd and Paranjape Schemes (Constructions) Ltd are in talks again to sell all, or part of their stake, in the 130-acre export zone they are developing near Pune, after earlier discussions with a Tata Group company failed, reports Mint. Flagship Infrastructure Pvt Ltd, their special purpose vehicle (SPV) for the Blue Ridge special economic zone (SEZ) in Hinjewadi, is looking to dilute a majority stake in the 1.4 million sq ft of space it has developed and almost fully leased out, said Shashank Paranjape, chairman of Paranjape Schemes, a Pune-based developer.

The total 2.9 million sq ft of space that can be developed at Blue Ridge is valued at Rs 1,000 crore, he said. Flagship was in advanced talks with Tata Realty and Infrastructure Ltd’s fund till December, but the deal didn’t go through. “We are now talking to a number of funds which are focused on investing in rental yield generating assets,” Paranjape said without giving more details. The 1.4 million sq ft of developed area in the SEZ is expected to generate a monthly rental income of Rs 4.9 crore, escalating at about 15 per cent a year.

Property analysts predict 2011-12 will be a year of exits for realty funds as a horde of assets are already in the market for sale. Several office and rental assets are likely to be on the block as the market for office space is on a rebound after the slowdown of two years ago. In 2007, Indiareit, which typically invests in unlisted real estate developers at an SPV level, picked up a 24 per cent stake for about Rs 250 crore in the Blue Ridge SEZ, which includes a residential township. The realty fund recently exited an office project in Kurla, a Mumbai suburb, with thrice the return on its investment of Rs 145 crore.

The project is being developed by Neptune Realtors Pvt Ltd. “We are in the business of buying into projects and exits, and that will continue to happen,” said Ramesh Jogani, chief executive, Indiareit. Maheswari said that among the many properties on the block, interest would be higher in assets that yield rental income, but sales would depend on valuation. HDFC Property Ventures Ltd has put up nearly half of its 3.4 million sq ft of office space for sale for Rs 640 crore. The fund invested in these properties almost four years back.

Tata Housing to Invest Rs 3,000 crore on Affordable Houses

2011-03-03T07:30:00.000-08:00

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Tata Housing Development Company would invest up to Rs 3,000 crore next fiscal to develop affordable homes across the country. The company already has five projects in the affordable segment and plans to launch 7-8 more projects next fiscal. Tata Housing has formed a subsidiary Smart Value Homes to develop affordable houses in the price range of Rs 5-35 lakh.

“We plan to invest Rs 2,500-3,000 crore in 2011-12 to develop existing and new projects in the affordable housing segment,” Tata Housing Development Company managing director Brotin Banerjee, said. Smart Value Homes is developing two projects each in Mumbai and Pune, and one in Chennai with a total saleable area of 10-12 million sq ft, Banerjee said.

“We will launch three more projects in Mumbai, Bangalore and Ahmedabad during the first quarter of 2011-12,” he said, adding that the company is looking at more projects in other parts of the country. The company plans to build affordable homes in Ludhiana, Jalandhar and periphery of Chandigarh on public-private-partnership (PPP) model in the wake of high land prices in the state.

DLF to Launch Luxury Residential Project “DLF Kings Court” Tomorrow

2011-02-24T21:56:00.001-08:00

The country’s largest realty firm, DLF, plans to launch one of the costliest residential projects here this week offering 38 luxury housing units at a price range of Rs 15-25 crore. The company will launch on Tuesday a super luxury residential project ‘DLF King’s Court‘, which is spread over 2.3 acres of land at Greater Kailash-II in South Delhi, with a project cost of about Rs 700 crore, PTI reported, citing sources.

DLF, which had developed 3,000 acre DLF City in Gurgaon and many colonies in Delhi in 1960s, would offer 27 flats, with sizes ranging between 5,000 sq ft and 7,200 sq ft, and 11 villas each of 7,000 sq ft. DLF Group executive director Rajeev Talwar confirmed that the company is developing a premium project in GK-II but declined to share further details.

“The apartments will be very premium in nature that never has happened in Delhi. The construction has already begun and possession will be given within three years,” Talwar said. Although DLF is yet to fix the basic selling price of the housing units, sources said these will be available for about Rs 15 crore to Rs 25 crore.

The company is likely to sell these flats and villas at Rs 35,000-40,000 per sq ft, sources said, adding that the project cost is estimated at Rs 700 crore, including the land cost. Last year, DLF had launched another luxury residential property ‘Capital Greens’ where flats were sold for about Rs 4 crore per unit at Shivaji Marg, close to Moti Nagar (near Central Delhi). The flats were offered at Rs 11,000 per sq ft. Rival Parsvnath has two residential projects in the National Capital — one at Subhash Nagar (West Delhi) priced at Rs 7,500 per sq ft and the other at Civil Lines (North Delhi) tagged at Rs 10,000 a sq ft.

Another developer Emaar MGF offered apartments at Rs 12,700/sq ft in its Commonwealth Games project. At present, DLF has 302 million sq ft of development potential, out of which 40 million sq ft is under construction.

Land Registration Rates Doubled in Delhi

2011-02-13T18:30:00.000-08:00

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Circle rates, the minimum value of any piece of land or immovable property for registration, doubled in Delhi yesterday. First fixed in 2007, they’ve been revised for the first time. Developers and analysts were split on whether this would take property prices up significantly in the capital. While some developers indicated these could increase 10 to 12 per cent, others anticipated only a marginal impact, as the market rates were already much higher than the revised structure in many places.
There’s consensus, however, that the overall revenue going into the city government kitty from stamp duties would shoot up. The government said it wanted to check the circulation of black money in realty transactions by revising the circle rates. After the Delhi Cabinet led by chief minister Sheila Dikshit had decided to increase the circle rates by 100 per cent, lieutenant governor Tejendra Khanna had opposed it. Subsequently, the matter was referred to the Union home ministry, which backed the Delhi government.

Delhi is divided into eight circles for property valuation purposes. Experts note that neighbouring Haryana and Uttar Pradesh have revised their circle rates frequently. The revised rates will be referred to for registration of instruments (land and immovable properties) in the city in line with the amended Delhi Stamp (Prevention of Undervaluation of Instruments) Rules. Anshuman Magazine, chairman and managing director, CB Richards Ellis (a real estate consulting firm), said, “Property prices have increased over the years in Delhi; therefore, the increased circle rate is justified.” Welcoming the city government move, he said, “It should result in improving transparency in the residential transactions in the city, henceforth.”
On whether the circle rate revision would impact property prices sharply, Magazine noted property values in many localities were already extremely high, and on par with advanced economies. The revised rates would have an impact only in cases where the property prices are quite low, he argued. However, Manoj Goyal, vice-president, Raheja Developers Ltd, said the increase would affect property prices in Delhi by 10 to 12 per cent, due to the burden of additional stamp duty and capital gains tax. “The government’s initiative to minimise the black marketing will serve if the duty is reduced to two per cent from six per cent now, besides hiking the circle rates.” According to Goyal, a cut in stamp duty rate would help in controlling the rise in property prices caused by the increase in circle rates.
Another developer in the city, RG Group, ruled out any significant impact of the revised rates on property prices. Rajesh Goyal, managing director of RG Group, argued there would not be any effect of the circle rate revision on property prices. In most areas, rates are already much higher than the circle rates announced, he said. But it will make the registration process a costly affair, he added. According to the RG Group, this move will help in reducing the gap between the government-fixed circle rate and the actual market rate, reducing the role of black money in this business.
Red (Special Edition)
The National Real Estate Development Council (Naredco) has hailed the step. This will not only increase the stamp duty collection, which is shared between the Delhi government and the Municipal Corporation of Delhi (MCD) but also encourage property buyers and sellers to declare the true value of property, thereby minimising black money transactions, Naredco stressed. It has, however, called for reduction in stamp duty as a next step, “as this would encourage more people to declare true value even in high value transaction of property and increase the revenue for the government”.
Alone

2011-02-13T03:28:00.000-08:00

Love at First Flight

HDIL Sells 7 Acre Andheri East (Mumbai) Plot for Rs 800 crore

2011-01-09T02:11:00.000-08:00

Love at First FlightIn perhaps the largest land transaction beyond Bandra, a seven-acre plot in Andheri (East) was sold for around Rs 800 crore last week. The 30,000 sq m (approx 3,23,000 sq ft) Popular Car Bazar on Andheri- Kurla Road, owned by Mumbai- based real estate company HDIL, sold it to the Kanakia Group a few days after Christmas last month.

The land once belonged to the Thakur family, which sold it to HDIL two years ago for over Rs 400 crore. It was earlier used as a garage. Today, about 20% of the plot is covered by slums. Kanakia is likely to get about seven lakh sq ft to develop here. Sources say the Kanakia Group already has a large commercial project adjoining Popular Car Bazar, and it made sense to take it over.

The Kanakias own the Mariott Courtyard hotel in the vicinity. The new plot they have acquired is also along the upcoming metro line. The group plans to set up a new commercial project. Commercial rates in this area are around Rs 15,000 to Rs 20,000 per sq ft. Property experts described this as the largest land deal in the distant suburbs in recent times. The city witnessed several big land transactions last year, but most were either in the island city or up to Bandra.

In April 2009, city-based developer Wadhwa Group paid a little over Rs 1,000 crore to Reliance Industries Ltd (RIL) to develop a 2.5-acre plot (C-66) in Bandra-Kurla Complex (BKC). RIL had purchased the plot for Rs 918 crore through a bidding process in 2007. Early in 2010, the Wadhwa Group had paid Rs 570 crore for the 18-acre Hindustan Composites land in Ghatkopar. A six-acre government plot in Wadala also fetched the highest bid of Rs 4,053 crore from the Lodha Group last year, an all-India record reaffirming Mumbai’s no. 1 position in the property market.

The King Is Dead

Sahara Buys UK’s Iconic Grosvenor House Hotel for £470 million

2010-12-31T02:11:00.000-08:00

In the first crossborder deal for the Indian hospitality sector this year and also the first one for Subrata Roy’s Sahara India, the Lucknow-based financial services-to-real estate conglomerate has acquired UK’s iconic Grosvenor House hotel for a knock-down price of £470 million (Rs 3,275 crore) from the Royal Bank of Scotland (RBS). The UK has been a favourite shopping destination for Indian companies, with several well-known assets like Tetley and Typhoo in the tea category, Cuticura, Erasmic and Nulon in cosmetics and premier auto brands Jaguar & Land Rover having been snapped up.
The 494-room luxury property on London’s Park Lane, which was once home to the Duke of Westminster, is Sahara India’s second acquisition in the hospitality sector after its 2006 buyout of Sahara Star hotel, earlier known as Airport Centaur, in Mumbai. “This acquisition is part of the major expansion plans of the group. In addition to the acquisition of Grosvenor House, London will be the gateway for Sahara to introduce some of its new business ventures internationally,” said Subrata Roy Sahara, managing worker & chairman, Sahara Group.
RBS took over Grosvenor House in 2001 after Le Meridien collapsed into administrative receivership. The bank had been looking for a buyer for Grosvenor House for the last three years. At that time, the hotel was “valued for more than £1 billion.” However, unfavourable economic conditions hit valuations hard. Roy said, “The valuation, even today, is quite high but due to a highly satisfactory due diligence by RBS and after long and strict negotiations, we have purchased it for £470 million.”
Richard Lewczynski of Blandford Goldsmith put the deal together for Sahara India, which has acquired the property through Amby Valley Ltd. Grosvenor House, which has the largest banquet hall in London, is managed by the US-based Marriott International and is positioned as a JW Marriott hotel since September 2008. However, following the change in ownership, Sahara and Marriott will jointly manage the property. The conglomerate plans to refurbish Grosvenor House by offering several facilities such as an Indian restaurant under the name Namak, a night club, swimming pool and spa.
When Subrata Roy took over Sahara Star, he gave the property a complete makeover. The five-star hotel boasts of being the world’s largest pillar-less clear-tosky dome structure complemented by India’s biggest marine aquarium. Kaushik Vardharajan, MD of HVS, a global hospitality consultancy firm, said, “The US and European hospitality sector continues to be under pressure with low room occupancy levels and dropping tariffs. As a result, valuation of hotels has declined significantly. This helps companies like Sahara to acquire properties at a discount.” Vardharajan added that in terms of capital investment, it works out better to acquire hotels abroad at a discount compared to building one in India. The cash flows kicks in immediately in a running hotel compared to a greenfield one.