Saturday, January 12, 2008
Friday, January 11, 2008
Thursday, January 10, 2008
Stations facelift to wagon Rs 10,000 crore to Laludom
The Railways plan to unlock around 300 hectares in Delhi, Patna, Howrah, Agra, Jaipur and Chennai railway stations and hope to generate over Rs 10,000 crore from their development. The Railways would unlock around 100 hectares in Delhi out of which around 20 hectares would be used for commercial development. The rest of 200 acres would be unlocked in the other cities.
“Works on Patna and New Delhi would start by March,” an official said. He said New Delhi station modernisation project could cost up to Rs 5,000 crore and big infrastructure players like DLF, ADAG, Tata and GMR are among the players that are in talks with the Railways for the contract. The Railways have appointed Hong Kong-based Terry Farrell and Partners as consultant for the architectural design for modernising New Delhi Railway station. Consultants for Patna railway station makeover is set to be finalised in a month.
“Delhi and Patna railway stations makeover is topmost priority for the Railways at the moment. The rest of cities would follow suit subsequently,” the official said.
The Railway land are likely to command a price of around Rs 30,000 per sq ft, akin to commercial real estate prices prevalent in Central Business District (CBD). Analysts said this could be largest A-grade real estate space available after completion.
The Railways are in talks with the urban development ministry for grant of an additional floor area ratio (FAR) of 1 against the permissible 1.5 on railway land. Apart for unlocking land in these cities, the Railways have also decided to exploit about 500 acres in Mumbai, which could also add significant moolah to its kitty. The Maharashtra government has agreed to grant Railways a floor space index of four in Mumbai against existing norm of 2.5.
Unitech to go for $1.5 billion QIP
Board has already given nod for the issuance of 200 million shares.
In the largest-ever qualified institutional placement (QIP) by Indian corporates, real estate developer Unitech is expected to raise $1.5 billion (Rs 6,000 crore) through the QIP route in a couple of months. The QIP was expected in the first quarter of 2008, sources said.
The company’s board has already given approval for the issuance of 200 million shares to increase the paid-up share capital of the company, Unitech told exchanges on December 7. With a total share capital of 1,623.37 million, the company could dilute upto 12 per cent in the company.
If the company does a QIP of Rs 6,000 crore at today’s closing price of Rs 516, the dilution could be in the range of six to seven per cent, sources said.
In the previous major QIPs, GMR Infrastructure raised nearly Rs 3,965.52 crore ($1 billion) last month and wind energy company Suzlon raised nearly Rs 2,182.70 crore last year.
When contacted, company executives said: “We have already received shareholders’ approval for a QIP and we are considering the same. However, we have not finalised anything,” he said.
According to sources, the company is expected to use the QIP proceeds for its upcoming projects and telecom foray, which it is planning in all 22 telecom circles of the country. Unitech is also foraying into Mumbai real estate market with an investment of Rs 4,000 crore.
Unitech has several business segments relating to residential, commercial, IT parks, retail, amusement parks and hotels.
According to its annual report for 2006-07, it has 50 million square feet of ongoing projects. The company is also planning to build 50 malls across the country with an investment of Rs 20,000 crore.
Unitech has raised over Rs 3,100 crore (360 million POUND) on the Alternative Investment Market (AIM) of the London Stock Exchange through its arm Unitech Corporate Parks Plc (UCP).
Unitech is also considering to float a Real Estate Investment Trust (Reit) in an overseas market to raise $2-3 billion (about Rs 8,000-12,000 crore) to meet its expansion plans.
The company’s shares closed at Rs 516.95, down 1.54 per cent over yesterday’s close of Rs 525.05.
Wednesday, January 9, 2008
Punjab’s real estate industry goes hi-tech!
PUNJAB’S REAL estate industry has gone hi-tech, especially in Mohali and Chandigarh.
Taking a cue from their NRI brethren, the local real estate fraternity has taken to the internet media in a big way to promote their business.
Most builders have their own websites where the clients can reach and get updated on every facet of the project. Of great interest to the majority of the residents are the residential and commercial projects coming up in the region.
A local entrepreneur based in Mohali has gone a step further. Aps Randhawa, president & CEO of thelandsmiths.com is busy building a real estate portal providing services such as asset management, retail management, online marketing and free listing of properties to become a leader in the real estate industry not only in Punjab but in the whole of India. He is supported by a bunch of youthful IT professionals - all local Punjabi boys and girls who wish to give competition a run for their money. They include Rajesh Kumar, who is excited by the global reach of his work as he provides guidance and customer care services to NRIs. Says Aps Randhawa, "In the success of my real estate portal, I see the success of Punjabi enterprise."
It is true that entrepreneurs like Aps Randhawa are the people who will make Mohali the IT City of Punjab.
SEBI gives go-ahead to Emaar-MGF IPO
Realty major Emaar-MGF's application to go public has got the stamp of approval from the Securities and Exchange Board of India (SEBI) to launch its Initial Public Offering (IPO). The IPO is expected to hit the market in the first week of February and raise between Rs 5,000-6,000 crores, making it the second largest realty IPO in the country till date. The company will offload 11 crore shares with the pricing expected to hover around Rs 500-600 per share.
According to sources, the go-ahead came on Tuesday, subject to compliance of observations. "The documents will be finalized in another day or two and filed by Friday or Monday. This is only a formality and we expect to get everything ready so as to launch the IPO in early February," says the source.
Emaar MGF Land, a joint venture between one of the world's leading real estate companies Emaar Properties PJSC of Dubai, and MGF Development of India, filed its Draft Red Herring Prospectus (DRHP) with SEBI in September last year to enter the capital market with its IPO of equity shares.
The global co-ordinators and book running lead manager to the issue are Enam Securities Private Limited and DSP Merill Lynch Limited. The Book Lead Managers are Citigroup Global Markets India Private Limited, Kotak Mahindra Capital Company Limited, HSBC Securities and Capital Markets (India) Private Limited, JP Morgan India Private Limited and Goldman Sachs (India) Securities Private Limited.
The company is engaged in the development of properties in the residential, commercial, retail and hospitality sectors. Its operations span various aspects of real estate development such as land identification and acquisition; project planning, designing, marketing and execution.
Some of the current projects under implementation include development of Palm Springs and Palm Drive in Gurgaon, Mohali Hills at Mohali, the prestigious Commonwealth Games village, Delhi and Boulder Hills, Hyderabad.
Many real estate companies launched their IPOs last year, but the largest of them all was the DLF offering in July 2007, which raised Rs 9187 crore.
Realty developers urge govt to increase Floor Area Ratio
In order to create more affordable housing, the real estate industry on Tuesday urged the government to increase the Floor Area Ratio while developing infrastructure across the country.
At a national conference organised by the Confederation of Real Estate Developers' Associations of India (CREDAI), various developers, consultants and experts emphasised the need to increase the Floor Area Ratio for creating housing for all.
"If we really want to change the quality of life of poor and create housing for them, we have have to increase the Floor Surface Index (FSI) (or FAR)," Hiranandani Constructions Pvt Ltd Managing Director Niranjan Hiranandani said.
He suggested that the FSI should be increased to between 4-6 in the country.
However, Urban Development Expert Chandrashekhar Prabhu viewed that before increasing the FAR, infrastructure in the country should be developed first.
"Infrastructure is the key issue. First develop the infrastructure and then increase the FSI," he said.
Global real estate consultant CB Richard Ellis Chairman and Managing Director Anshuman Magazine also opined in the same way and said: "Ideally infrastructure should have been developed first and then FAR be increased. But unfortunately in India, it is not happening."
The prices of the properties have gone through roofs because of supply constraints, Magazine said, adding "... the only solution is to increase FAR and develop infrastructure simultaneously."
He said that the current average FSI in the country is between 1.25 and 2.
DLF Group Executive Director Rajeev Talwar also favoured a change in the existing FAR norms.
India's IT city is showing no signs of slowing down!
Anurang Mathur, Deputy MD, Cushman & Wakefield said, “Most of the demand comes from IT/ITES sector and Bangalore has lead for the last 3 to 4 years in the demand for this industry and hence in the office market as well. Now it has a critical mass and good breath hence we expect it to continue to do well.”
But the face of the Bangalore commercial real estate market looks all set to change. Reason -the city is facing a large space crunch for commercial property in the central business district. Commercial property rates that rose by 10-15 percent last year are expected to increase similarly this year; especially after the opening the new airport.
Mathur said, “This is airport is very far from the current airport and CBD and there is a lot of land and opportunity available for commercial development between the airport and the city. We will see plenty of action in those areas and all that real estate will change.”
The opening on the new airport is expected to change the dynamics of Bangalore’s commercial real estate market, areas like Indiranagar, airport road and the inner ring road that flourished until now because of their proximity to the current airport may witness a drop in interest levels
Nevertheless industry experts are bullish on Bangalore’s commercial market. They don't expect to see a situation of over supply for at least two years.
Commercial real estate (in million sqft)City Demand Absorption
Bangalore 13.32 8.7
NCR 10.6 6.6
Chennai 8.7 6.4
Mumbai 4.5 1.4
Source: Cushman & Wakefield Annual Report
Parsvnath Developers wins contract worth Rs. 90 crore from Shirdi Sai Trust
Parsvnath Developers Ltd, a major real estate player in the country has announced that the company has won a contract of Rs 90 crore from Chennai-based Shirdi Sai Trust for building an ashram in Mahrashtra.
Under the contract, Parsvnath will construct dormitories, residential blocks and an open air theatre and restaurant block over an area of approximately one million sq feet.
The company is already developing a 3-star hotel at Shirdi over an area of 50,000 sq feet.
The project will be initiated within the month of January 2008 and the work will be completed within 21 months from the date of commencement of construction, an official release said.
Pradeep Jain, Chairman, Parsvnath Developers Ltd said, “We feel privileged to be part of this great social work. Service to the pilgrims is paramount for us. The ashram will provide comfortable stay to Sai Baba devotees visiting the pilgrimage. Once complete, Shirdi Sai trust will hand over the ashram to Shirdi Sai Sansthan for ownership, management and further maintenance.”
Parsvnath Developers Limited a leading real estate developer in India has a PAN - India presence and an experience of more than 17 years in offering state of the art construction in 48 cities and 17 states with across key verticals of real estate industry.
At 11:55 am, stock of construction firm, Parsvnath Developers was quoting at Rs 546. It has touched an intraday high of Rs 583 and an intraday low of Rs 545. The stock was recommended for Buy yesterday by TopNews. The stock touched an all time high in yesterday’ trade.
Tuesday, January 8, 2008
Isreali real estate firm to invest $1 bn in Ludhiana
With India being dubbed as the 'next big destination' in real estate here, Israeli real estate firm Fishman Holdings is planning to invest $1 billion in Ludhiana.
According to media reports, the latest investment plan in India comes close on the heels of another project it embarked upon last month in Jaipur to build a township at the cost of $2 billion.
Fishman Holdings' Indian real estate development subsidiary, Mondon Investments Ltd, has signed a Memorandum of Understanding (MoU) to buy a 300 acre plot in Ludhiana for $84 million, the daily said.
Mondon is planning a 2.3 million square metre residential and commercial project on the site, assuming that the entire lot is purchased.
The entire cost, including the land, is estimated to be about $1 billion.
The land was purchased for $280,000 per acre with Mondon reaching an agreement with the seller that if the size of the plot falls below 300 acres, provided that it is no less than 100 acres, the price will be reduced to $238,000 per acre, it added.
The firm is already involved in a number of development projects in India, including residential and commercial projects in New Delhi, Thane, Hyderabad, and another project in Ludhiana.
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