ஏற்றம் இறக்கம் இரண்டுமே வாழ்க்கையில சகஜம் அது மாதிரிதான் சில நேரங்கள் மற்றவர்களுக்கு கடினமாக தெரிவது சிலருக்கு அது வாய்ப்பாக தெரியும் . அதுபோலத்தான் இது போன்ற தருணங்கள். நில முதலீடு சிறந்ததா எனும் கேள்வி எழும் பட்சத்தில் இந்த கட்டுரையை கொஞ்சம் படிங்க!
href="http://www.businessweek.com/investor/content/jul2007/pi20070725_115033.htm?chan=top+news_top+news+index_businessweek+exclusives">
Saturday, July 28, 2007
தமிழிலேயே செய்திகள் !
இன்று முதல் தமிழிலேயே நான் செய்திகளை தருகிறேன். நான் இப்போது உபுண்டு லினக்ஸ் பயண்படுத்துவதால் நேரடியாக தமிழிலேயே எழுத முடிகிறது. உபுண்டு லினக்ஸ் வேண்டுவோர் மிக எளிமையாக பயன்படுத்தலாம். wubi எனும் நிரலியை கூகிளில் தேடி அதனை கொண்டு மிக எளிதாக தற்போது நீங்கள் பயன்படுத்தும் விண்டோசிலேயே மற்றுமொறு நிரல் போல் பயன்படுத்தலாம். உபுண்டு லினக்ஸ் மிக எளிமையாக , எளிதாக இருக்கு. பழைய கணணி வைத்திருப்போர் கண்டிப்பாக உபுண்டுவை மட்டுமே நிறுவி பயன்படுத்தலாம். எந்த மாதிரி உதவி வேண்டுமானாலும் நீங்கள் தேட வேண்டியது கூகிள் மட்டுமே!
தேமதுரத் தமிழோசை உலகமெலாம் பரவும் வகை செய்தல் வேண்டும்!
http://www.ubuntu-tam.org/tamizh/
தேமதுரத் தமிழோசை உலகமெலாம் பரவும் வகை செய்தல் வேண்டும்!
http://www.ubuntu-tam.org/tamizh/
Sunday, July 22, 2007
Property shops in the pipeline
KOLKATA, July 21: If things turn out to be as rosy as claimed by the Real Estate Bank India (REBI), locating and buying property, residential or commercial, will become as easy as sipping coffee at the neighbourhood cafeteria.
REBI, a private enterprise, is set to open at least 120 property shops in the eastern region, forty-five of which will be in Kolkata and Howrah. It will have more than 3,000 such shops across India. Buyers will only have to go to these shops and express interest in buying a property, in an area of their choice.
“The rest, right from identifying the property to legal services as well as financing the deal and providing insurance, will be taken care of by our executives. To top it, buyers will not be charged anything for the services as those will be paid by the sellers,” Mr Lakshmi Narayanan, company CEO, said. The shops will be between 350-1,500 sqft.
The company has tied up with 12 banks (housing finance companies) to provide financial services and legal associates who will take care of the legal aspects of the deal, including registration.
It will start its own financing services within a year. The first two shops, one in Bhowanipore and another in Salt Lake, will start operations by Diwali. To make it easier for buyers, REBI will start a toll-free helpline and three websites to help them locate property, know the present status and details such as prices and viability at the click of a mouse. “Our mapping portal will be the first of its kind in the country,” the CEO claimed. The company is working on the franchisee model and is in the process of appointing a master franchisee. “This will take another two days, after which we will identify the franchisees for which we have received applications from about 120 parties, all local brokers,” Mr Narayanan said. REBI has tie-ups with at least 30 major builders. “But we will also sell small, local projects,” he added.
People can buy property anywhere in the country as well as six other countries, including the USA and the UK. West Asia will also be covered. REBI will soon launch its operations in these areas.
The company will offer options such as buying property for investment, without occupying them physically. “The way property prices are rising, investment in real estate will soon become a lucrative option,” Mr Narayanan said.
The company will also certify properties for which it will take all sorts of responsibilities, including legal hurdles and quality of property. “This, however, will be done only for properties sold through us,” he said.
REBI will invest about Rs 5 crore in the eastern region but after taking into account the investment by franchisees, it will go up to Rs 200 crore within a year. It expects to generate Rs 100 crore from the business by March, next year, of which more than 7-8 per cent from the eastern region. REBI will also enter the capital market through an initial public offering by 2009.
http://www.thestatesman.net/page.news.php?clid=6&theme=&usrsess=1&id=163485
REBI, a private enterprise, is set to open at least 120 property shops in the eastern region, forty-five of which will be in Kolkata and Howrah. It will have more than 3,000 such shops across India. Buyers will only have to go to these shops and express interest in buying a property, in an area of their choice.
“The rest, right from identifying the property to legal services as well as financing the deal and providing insurance, will be taken care of by our executives. To top it, buyers will not be charged anything for the services as those will be paid by the sellers,” Mr Lakshmi Narayanan, company CEO, said. The shops will be between 350-1,500 sqft.
The company has tied up with 12 banks (housing finance companies) to provide financial services and legal associates who will take care of the legal aspects of the deal, including registration.
It will start its own financing services within a year. The first two shops, one in Bhowanipore and another in Salt Lake, will start operations by Diwali. To make it easier for buyers, REBI will start a toll-free helpline and three websites to help them locate property, know the present status and details such as prices and viability at the click of a mouse. “Our mapping portal will be the first of its kind in the country,” the CEO claimed. The company is working on the franchisee model and is in the process of appointing a master franchisee. “This will take another two days, after which we will identify the franchisees for which we have received applications from about 120 parties, all local brokers,” Mr Narayanan said. REBI has tie-ups with at least 30 major builders. “But we will also sell small, local projects,” he added.
People can buy property anywhere in the country as well as six other countries, including the USA and the UK. West Asia will also be covered. REBI will soon launch its operations in these areas.
The company will offer options such as buying property for investment, without occupying them physically. “The way property prices are rising, investment in real estate will soon become a lucrative option,” Mr Narayanan said.
The company will also certify properties for which it will take all sorts of responsibilities, including legal hurdles and quality of property. “This, however, will be done only for properties sold through us,” he said.
REBI will invest about Rs 5 crore in the eastern region but after taking into account the investment by franchisees, it will go up to Rs 200 crore within a year. It expects to generate Rs 100 crore from the business by March, next year, of which more than 7-8 per cent from the eastern region. REBI will also enter the capital market through an initial public offering by 2009.
http://www.thestatesman.net/page.news.php?clid=6&theme=&usrsess=1&id=163485
Tuesday, July 17, 2007
$4 bn set to enter real estate
July 17, 2007 09:59 IST
Over $4 billion belonging to various global realty funds is ready to enter the Indian real estate sector on the back of $1 billion which has already come in, according to Bobby Parikh, managing partner, BMR & Associates.
Interest in India is mainly due to the sector transforming from a highly-fragmented business, dominated by regional private entrepreneurs and archaic laws, to a transparent and accessible global business, he told a workshop on taxation and regulation for real estate.
Parikh felt the "recent changes in rules on foreign investment through preference shares and the debenture route and, more importantly, the changes in ECB guidelines now preventing the use of foreign debt in the real estate sector, have had a significant impact on the flow of foreign funds into the real estate sector."
http://www.rediff.com/money/2007/jul/17real.htm
Over $4 billion belonging to various global realty funds is ready to enter the Indian real estate sector on the back of $1 billion which has already come in, according to Bobby Parikh, managing partner, BMR & Associates.
Interest in India is mainly due to the sector transforming from a highly-fragmented business, dominated by regional private entrepreneurs and archaic laws, to a transparent and accessible global business, he told a workshop on taxation and regulation for real estate.
Parikh felt the "recent changes in rules on foreign investment through preference shares and the debenture route and, more importantly, the changes in ECB guidelines now preventing the use of foreign debt in the real estate sector, have had a significant impact on the flow of foreign funds into the real estate sector."
http://www.rediff.com/money/2007/jul/17real.htm
Thursday, June 21, 2007
Indiabulls Real Estate to start two housing projects in Chennai
Mumbai-based Indiabulls Real Estate, through its wholly owned subsidiaries Selene Estate and Fama Land Development; acquired two housing projects in Chennai (India).
Selene Estate, a wholly owned subsidiary of the company, entered into an agreement to acquire 50 acres of land to develop a residential project at Jalladianpet, a suburb of Chennai.
Fama Land Development, a wholly owned subsidiary of the company, entered into an agreement to acquire 241 acres of land to develop a residential and commercial project located near National Highway 5.
Further, the company, through its wholly owned subsidiaries, acquired 396 acres of land in Panvel, near Mumbai, to develop large scale residential projects.
Indiabulls Industrial Infrastructure (IIIL) a wholly owned subsidiary of the company is in discussions with MIDC to finalize its stake in the joint venture, for development of a multi product special economic (SEZ) at Nasik.
The company`s received Rs 2,644.9 million from Ariston Investment and Rs 1,728.9 million from Ariston Investment towards the sale of equity stakes of 7.95% each, in Indiabulls Properties and Indiabulls Real Estate Company.
Shares of the company were last trading up Rs 4.50, or 1.16%, at Rs 392.00. The total volume of shares traded at the BSE was 139,456 (10.00 a.m, Wednesday).
http://www.myiris.com/newsCentre/newsPopup.php?fileR=20070620100642130&dir=2007/06/20&secID=livenews
Selene Estate, a wholly owned subsidiary of the company, entered into an agreement to acquire 50 acres of land to develop a residential project at Jalladianpet, a suburb of Chennai.
Fama Land Development, a wholly owned subsidiary of the company, entered into an agreement to acquire 241 acres of land to develop a residential and commercial project located near National Highway 5.
Further, the company, through its wholly owned subsidiaries, acquired 396 acres of land in Panvel, near Mumbai, to develop large scale residential projects.
Indiabulls Industrial Infrastructure (IIIL) a wholly owned subsidiary of the company is in discussions with MIDC to finalize its stake in the joint venture, for development of a multi product special economic (SEZ) at Nasik.
The company`s received Rs 2,644.9 million from Ariston Investment and Rs 1,728.9 million from Ariston Investment towards the sale of equity stakes of 7.95% each, in Indiabulls Properties and Indiabulls Real Estate Company.
Shares of the company were last trading up Rs 4.50, or 1.16%, at Rs 392.00. The total volume of shares traded at the BSE was 139,456 (10.00 a.m, Wednesday).
http://www.myiris.com/newsCentre/newsPopup.php?fileR=20070620100642130&dir=2007/06/20&secID=livenews
Monday, June 18, 2007
Alliance Gr to launch Real estate TV at Rs 100 cr in July
BANGALORE: The Rs 4,400 crore Alliance Group will invest Rs 100 crore to launch the country's first 24-hour real estate information channel next month.
"It will provide comprehensive, latest and authentic updates on all aspects of real estate, including infrastructure, to viewers all over the country, the south and south-east Asian region and Gulf states where there is a strong NRI presence," Alliance Chairman and Managing Director Manoj Namburu.
Real Estate TV, a pan-India English-language channel was being put together under the guidance of media personality Sashi Kumar by a team of media professionals led by Chief Operating Officer T K Vibhaker, Namburu said.
With news bureaus and studios in Mumbai, Delhi-NCR, Chennai, Bangalore, Hyderabad and Kolkata, a wide information- gathering network across India, and research and analysis facility in Delhi, Real Estate TV will be "the one-stop shop for anything and everything connected with this industry and the large number of other industries connected to it," said Sashi Kumar.
http://economictimes.indiatimes.com/Markets/Real_Estate/Realty_Trends/Alliance_Gr_to_launch_Real_estate_TV_at_Rs_100_cr_in_July/articleshow/2123086.cms
"It will provide comprehensive, latest and authentic updates on all aspects of real estate, including infrastructure, to viewers all over the country, the south and south-east Asian region and Gulf states where there is a strong NRI presence," Alliance Chairman and Managing Director Manoj Namburu.
Real Estate TV, a pan-India English-language channel was being put together under the guidance of media personality Sashi Kumar by a team of media professionals led by Chief Operating Officer T K Vibhaker, Namburu said.
With news bureaus and studios in Mumbai, Delhi-NCR, Chennai, Bangalore, Hyderabad and Kolkata, a wide information- gathering network across India, and research and analysis facility in Delhi, Real Estate TV will be "the one-stop shop for anything and everything connected with this industry and the large number of other industries connected to it," said Sashi Kumar.
http://economictimes.indiatimes.com/Markets/Real_Estate/Realty_Trends/Alliance_Gr_to_launch_Real_estate_TV_at_Rs_100_cr_in_July/articleshow/2123086.cms
Ajmera to invest Rs 300 cr in Bangalore realty space
BANGALORE: Real estate major Ajmera Group, part of the $450-million Mumbai-based Ajmera Group of Companies, is looking to expand its footprint in Bangalore in a big way. The company’s plans entail investing close to Rs 300 crore on residential developments in the city over the next two years.
To begin with, Ajmera will launch its premium residential offering Ajmera Arista in the city. Located at HRBR Layout, Arista comprises about 20-25 apartments with each unit priced upwards of Rs 1 crore. Further, the company proposes to develop an integrated township in Bangalore — Ajmera Infinity — in close proximity to the city’s IT hub. “The company has acquired an 18-acre patch at Electronic City for the township project. Initially, we intend to develop about 1.8 million square feet of residential space on the property, located 1 km from the Wipro campus,” said Dhaval Ajmera, director, Ajmera Group of Companies.
The group is also in the process of acquiring land in Bangalore for its future projects. “We have zeroed in on a couple of properties in and around the city. We expect to pick up the same in the next six-eight months, after which the group will double its current investment outlay, taking the total investment to roughly Rs 600 crore,” added Mr Ajmera. So far, the group has invested Rs 100 crore on real estate projects in Bangalore.
Infinity is the outcome of a new concept that’s doing the rounds at Ajmera — walk to work. “Commuting within the city is a major hassle these days; and we believe that the ‘walk to work’ concept would be the way forward. Our study revealed that the suburb currently has a shortage of about 4,000-5,000 apartment units. Therefore, it makes sense for us to launch our new concept here,” said Mr Ajmera.
The Ajmera Group forayed into south India in early 2006 with the launch of Ajmera Green Acres in Bangalore, a 5,00,000-square-foot development off Bannerghatta Road. Till date, the company has developed over 1,70,00,000 square feet of residential space across the country. Recently, Ajmera along with its Indian JV partner Mayfair Housing inked at agreement with Bahrain Bay Corporation to develop a $150-million mixed-use project coming up in the Bahrain Bay area.
http://economictimes.indiatimes.com/Markets/Real_Estate/Realty_Trends/Ajmera_to_invest_Rs_300_cr_in_Bangalore_realty_space/articleshow/2129765.cms
To begin with, Ajmera will launch its premium residential offering Ajmera Arista in the city. Located at HRBR Layout, Arista comprises about 20-25 apartments with each unit priced upwards of Rs 1 crore. Further, the company proposes to develop an integrated township in Bangalore — Ajmera Infinity — in close proximity to the city’s IT hub. “The company has acquired an 18-acre patch at Electronic City for the township project. Initially, we intend to develop about 1.8 million square feet of residential space on the property, located 1 km from the Wipro campus,” said Dhaval Ajmera, director, Ajmera Group of Companies.
The group is also in the process of acquiring land in Bangalore for its future projects. “We have zeroed in on a couple of properties in and around the city. We expect to pick up the same in the next six-eight months, after which the group will double its current investment outlay, taking the total investment to roughly Rs 600 crore,” added Mr Ajmera. So far, the group has invested Rs 100 crore on real estate projects in Bangalore.
Infinity is the outcome of a new concept that’s doing the rounds at Ajmera — walk to work. “Commuting within the city is a major hassle these days; and we believe that the ‘walk to work’ concept would be the way forward. Our study revealed that the suburb currently has a shortage of about 4,000-5,000 apartment units. Therefore, it makes sense for us to launch our new concept here,” said Mr Ajmera.
The Ajmera Group forayed into south India in early 2006 with the launch of Ajmera Green Acres in Bangalore, a 5,00,000-square-foot development off Bannerghatta Road. Till date, the company has developed over 1,70,00,000 square feet of residential space across the country. Recently, Ajmera along with its Indian JV partner Mayfair Housing inked at agreement with Bahrain Bay Corporation to develop a $150-million mixed-use project coming up in the Bahrain Bay area.
http://economictimes.indiatimes.com/Markets/Real_Estate/Realty_Trends/Ajmera_to_invest_Rs_300_cr_in_Bangalore_realty_space/articleshow/2129765.cms
Sunday, June 17, 2007
London Luxury-Home Price Increases May Slow, Knight Frank Says
June 14 (Bloomberg) -- Luxury home prices in London, the world's most expensive city, may increase at a slower pace this year as more properties come onto a market with fewer buyers, real estate broker Knight Frank LLC said.
The average price of London's costliest houses and apartments probably will climb about 20 percent this year after an almost 29 percent gain in 2006, Knight Frank estimates. That would be the smallest gain since the 8.2 percent advance in 2005.
The number of people who registered with Knight Frank to buy a luxury home in areas including Knightsbridge has dropped 30 percent since March as prices continued to increase, said Liam Bailey, the company's head of residential research, in an interview. In May, prices rose 2.5 percent from the previous month and more than 33 percent from a year earlier, the biggest annual gain since 1979.
`We're turning a corner,'' said Bailey. ``The market's been so incredibly strong that some buyers have sat back to wait and see what happens.''
The prospect of a slowdown follows an 18-month surge driven by bonuses earned by investment bankers, money managers and brokers. An influx of wealthy overseas investors, attracted to London's favorable tax conditions and reputation as a world-class city, have also driven demand.
Price Appreciation
The average price of a luxury house in Knight Frank's monthly index, which draws from seven of London's most expensive districts, is now about 5 million pounds ($9.85 million), with apartments costing 2.5 million pounds. A typical house has appreciated by at least 100,000 pounds, or about four times the average annual U.K. wage, each month since September.
A house worth 100,000 pounds in 1976, when the firm began its survey, would be worth 4.2 million pounds today.
Prime properties sell at 2,300 pounds a square foot, or 5 percent more than nearest rival, Monaco. In New York, comparable homes sell for about 1,600 pounds a square foot and in Tokyo for about 1,100 pounds, Bailey said.
The fastest gains have been for properties in the ``Golden Triangle'' of Knightsbridge, Mayfair and Belgravia, where homes can command 4,000 pounds a square foot.
``Mayfair has doubled in the past 12 months,'' said Paul Davies, an interior designer and developer who also has projects in Monaco, New York and Los Angeles and whose customers include pop star Madonna. ``London is the most international market.''
Overseas Investors
Britain is home to about 68 billionaires, according to an annual survey published by the Sunday Times. Many are overseas investors from emerging economies like China, India and Russia, who have bought homes in London for business purposes as well as the attraction of its security, schools, stores, theaters and restaurants.
A Knight Frank survey of high net worth individuals showed that taxes are the ``single most important feature'' in their choice of where to make a home. Laws allow overseas investors to live in Britain while domiciling themselves overseas for tax purposes to avoid paying levies on their global assets to the U.K.
Brothers Sri and Gopi Hinduja, who own the Hinduja Group with a sibling, last year paid 58 million pounds for a 60-room home on The Mall, according to the Sunday Times. Other overseas residents or home-owners include Norwegian shipping magnate John Fredriksen and Vladimir Kim, chairman of Kazakhstan's biggest copper producer, the newspaper said.
Limited Stock
Foreign entrepreneurs are competing for a limited stock of properties with bankers, hedge fund managers and other finance industry workers who took home record bonuses this year, according to the Centre for Economics and Business Research Ltd.
Next year's bonuses, based on profits generated this year, probably will exceed the record 8.8 billion pounds paid out in 2007 to some 300,000 professionals. That may continue to bolster the realty market, said Jonathan Said, a senior economist at London-based CEBR.
``We can't see prices in London declining for a number of years,'' Said added. ``There's so much activity in London and jobs growth at the top end of the market.''
International Market
The wealth created in London's financial services industry is having a trickle down effect across the city and the surrounding region.
On the St. George's Hill private estate in Weybridge, where Beatles John Lennon and Ringo Starr once lived among rhododendrons and woods 17 miles southwest of central London and 7 miles south of Heathrow airport, prices for mansions have climbed about 20 percent in the past 12 months.
Middle class families, priced out of their neighborhoods of choice in London, are looking at homes they wouldn't have considered a decade ago and gentrifying districts like Wandsworth and Battersea, Davies said.
Because of supply shortages, average house prices in London outstripped gains elsewhere in the U.K. Prices gained 14 percent in the British capital in the 12 months to the end of April, according to government figures. That compares with an 11.3 percent increase for the U.K. overall.
``It always feels we have reached a peak, but then we reach it and push on through,'' said Simon Ashwell, an associate director of real estate broker Savills Plc in Weybridge.
http://www.bloomberg.com/apps/news?pid=20601102&sid=atj8lPYq.RHg&refer=uk
The average price of London's costliest houses and apartments probably will climb about 20 percent this year after an almost 29 percent gain in 2006, Knight Frank estimates. That would be the smallest gain since the 8.2 percent advance in 2005.
The number of people who registered with Knight Frank to buy a luxury home in areas including Knightsbridge has dropped 30 percent since March as prices continued to increase, said Liam Bailey, the company's head of residential research, in an interview. In May, prices rose 2.5 percent from the previous month and more than 33 percent from a year earlier, the biggest annual gain since 1979.
`We're turning a corner,'' said Bailey. ``The market's been so incredibly strong that some buyers have sat back to wait and see what happens.''
The prospect of a slowdown follows an 18-month surge driven by bonuses earned by investment bankers, money managers and brokers. An influx of wealthy overseas investors, attracted to London's favorable tax conditions and reputation as a world-class city, have also driven demand.
Price Appreciation
The average price of a luxury house in Knight Frank's monthly index, which draws from seven of London's most expensive districts, is now about 5 million pounds ($9.85 million), with apartments costing 2.5 million pounds. A typical house has appreciated by at least 100,000 pounds, or about four times the average annual U.K. wage, each month since September.
A house worth 100,000 pounds in 1976, when the firm began its survey, would be worth 4.2 million pounds today.
Prime properties sell at 2,300 pounds a square foot, or 5 percent more than nearest rival, Monaco. In New York, comparable homes sell for about 1,600 pounds a square foot and in Tokyo for about 1,100 pounds, Bailey said.
The fastest gains have been for properties in the ``Golden Triangle'' of Knightsbridge, Mayfair and Belgravia, where homes can command 4,000 pounds a square foot.
``Mayfair has doubled in the past 12 months,'' said Paul Davies, an interior designer and developer who also has projects in Monaco, New York and Los Angeles and whose customers include pop star Madonna. ``London is the most international market.''
Overseas Investors
Britain is home to about 68 billionaires, according to an annual survey published by the Sunday Times. Many are overseas investors from emerging economies like China, India and Russia, who have bought homes in London for business purposes as well as the attraction of its security, schools, stores, theaters and restaurants.
A Knight Frank survey of high net worth individuals showed that taxes are the ``single most important feature'' in their choice of where to make a home. Laws allow overseas investors to live in Britain while domiciling themselves overseas for tax purposes to avoid paying levies on their global assets to the U.K.
Brothers Sri and Gopi Hinduja, who own the Hinduja Group with a sibling, last year paid 58 million pounds for a 60-room home on The Mall, according to the Sunday Times. Other overseas residents or home-owners include Norwegian shipping magnate John Fredriksen and Vladimir Kim, chairman of Kazakhstan's biggest copper producer, the newspaper said.
Limited Stock
Foreign entrepreneurs are competing for a limited stock of properties with bankers, hedge fund managers and other finance industry workers who took home record bonuses this year, according to the Centre for Economics and Business Research Ltd.
Next year's bonuses, based on profits generated this year, probably will exceed the record 8.8 billion pounds paid out in 2007 to some 300,000 professionals. That may continue to bolster the realty market, said Jonathan Said, a senior economist at London-based CEBR.
``We can't see prices in London declining for a number of years,'' Said added. ``There's so much activity in London and jobs growth at the top end of the market.''
International Market
The wealth created in London's financial services industry is having a trickle down effect across the city and the surrounding region.
On the St. George's Hill private estate in Weybridge, where Beatles John Lennon and Ringo Starr once lived among rhododendrons and woods 17 miles southwest of central London and 7 miles south of Heathrow airport, prices for mansions have climbed about 20 percent in the past 12 months.
Middle class families, priced out of their neighborhoods of choice in London, are looking at homes they wouldn't have considered a decade ago and gentrifying districts like Wandsworth and Battersea, Davies said.
Because of supply shortages, average house prices in London outstripped gains elsewhere in the U.K. Prices gained 14 percent in the British capital in the 12 months to the end of April, according to government figures. That compares with an 11.3 percent increase for the U.K. overall.
``It always feels we have reached a peak, but then we reach it and push on through,'' said Simon Ashwell, an associate director of real estate broker Savills Plc in Weybridge.
http://www.bloomberg.com/apps/news?pid=20601102&sid=atj8lPYq.RHg&refer=uk
Brokering change
It is common for Chetan Narain to pick up his clients from a plush suburban hotel in his Porsche. And then catch up on the latest business deals over a round of golf.
He also oversees all his client’s legal formalities. Narain is not a hospitality manager, but a real estate consultant. As CEO of Narain Corp, he shatters every stereotype of the paan-chewing neighbourhood broker one dealt with earlier.
The big makeover
“Earlier, the broker’s task involved merely showing clients around sites and then handing them over to the seller,” says Bharat Tolani, Casper Properties. “Today, a consultant’s role begins from this point.” The first meeting is spent identifying the client’s requirements.
“We start with the basics. For instance, where the child’s school will be, what kind of amenities the client needs, proximity to places of leisure and so on. Today, consultants are well-read and pro-active,” says Tolani.
Tolani feels it is the entry of NRIs and expats that has brought some amount of sophistication and corporatisation to the business. “They expect legal and prompt transactions. Large-scale property dealings have proven that we are transparent and reliable. They trust us now because we are involved and keep them updated.”
The neo broker also reaches out by organising seminars and keeping his audiences updated. Narain and Sandeep Sadh, CEO, mumbaipropertyexchange.com, write real estate columns for newspapers. Narain is also president of the India Institute of Real Estate (IIRE), which offers a certificate course in real estate.
“The very change of term — from ‘broker’ to ‘consultant’ — illustrates a paradigm shift,” says Rashmi Rohida, director, Aryan Properties. “People now understand that we add value to the earlier service of just
showing every available real estate in the market. It is a consultant’s duty to negotiate with authorities for legal documents, verify the authenticity of the buyer and seller and check loopholes in the lease, if any.”
Almost legal
Harish Pandeya, director, Andromeda Marketing Private Limited, says the profile of the consultant has undergone a sea change as he offers legal expertise that gives him authority throughout the deal.
“We are almost like lawyers now. Buyers are more demanding and having legal know-how saves time and resources. I once faced a situation where a landlady refused to rent her apartment to a non-corporate. She was convinced only when I cited the laws that protected her legal interests.”
Getting the right mix
Real estate consultancy is also no longer a one-man army. The once suspicious broker reluctant to delegate is now scouting for talent and building teams, sometimes with an unusual mix of people.
“My team consists of people from the hospitality industry, airlines and even event management industry. They have great interpersonal skills and a flair for business,” says Narain, who leads a team of nine.
So what goes into making the contemporary consultant? Pandeya says higher education is not a prerequisite but good math skills and the willingness to work on Sundays certainly is.
“I choose people who exude maturity. Customers cannot rely on the judgement of a rookie,” he explains. Narain, though, feels education does lend a touch of professionalism to a consultant’s demeanour. But he cites exceptions too. “I once rejected a highly qualified and competent applicant because he breezily addressed me by my first name.”
Those wanting to make the consultant grade can also avail of training. Associate consultants receive classroom coaching — basics in understanding loans, transactions, phases of payment and handling site visits. Eventually, smaller deals are delegated to them. They get to keep all the incentives on these deals.
Of pdas and databases
Worn-out calculators and dog-eared notebooks do not adorn the broker’s profile anymore. A high-flying corporate and a true techie at heart, he flaunts chauffeurs, laptops and PDA phones with élan.
Also noteworthy is the broker’s database-driven approach. “Our profession will be in shambles if it doesn’t acknowledge the need for a strong database. Gone are the days when the broker paraded the entire city to a client. Now, we believe in putting the best wares on display.
There are tailor-made packages for every area to suit every budget. Every inquiry is answered in a matter of hours and the property package list is e-mailed. Verbal communication is confirmed on paper for credibility and to avoid any confusion,” says Rohida.
Tolani seconds this and highlights that a consultant is only as good as his network. He regularly scans his customer database and keeps in touch with old clients as they ensure business on recommendation.
The frills get fancier
There are many other frills and add-ons that Mumbai’s consultant offer. For instance, if you are looking for the best place to buy electrical fittings or get second-hand furniture, who do you call? Your broker.
If you are looking at a checklist that tells you to ensure that there are no leakages and rodents in the house, that all old curtain rods should be replaced and that kitchen cabinets should be repaired — chances are it is from your broker.
Says Sadh, “From waiting for hours when the client wants to rest to choosing home furnishings and buying electric fittings, a consultant does it all.” He recounts the time he stocked an assortment of Italian breads and confectionery in his car for the client’s children who were accompanying them on site visits.
Consultancy, he jokes, is more a PR job — all about managing individual temperaments and being affirmative to demands. Pandeya learnt an important lesson by identifying this role. “A few years back, I forgot to tell an important client to renew his lease because I did not consider it my ‘job’. I cannot afford to overlook that today.”
The road ahead
With multitasking and super-specialisation, their dreams are getting bigger. “The role of a consultant in generating loans will increase. The future will also see us offering specialist legal views, especially to the NRI community.
Though bigger consultants will consolidate, the individual broker will not fade away.” Narain says, “I see fortnightly webcasts of real estate news as my next challenge.”
http://www.dnaindia.com/report.asp?newsid=1103794&pageid=3
He also oversees all his client’s legal formalities. Narain is not a hospitality manager, but a real estate consultant. As CEO of Narain Corp, he shatters every stereotype of the paan-chewing neighbourhood broker one dealt with earlier.
The big makeover
“Earlier, the broker’s task involved merely showing clients around sites and then handing them over to the seller,” says Bharat Tolani, Casper Properties. “Today, a consultant’s role begins from this point.” The first meeting is spent identifying the client’s requirements.
“We start with the basics. For instance, where the child’s school will be, what kind of amenities the client needs, proximity to places of leisure and so on. Today, consultants are well-read and pro-active,” says Tolani.
Tolani feels it is the entry of NRIs and expats that has brought some amount of sophistication and corporatisation to the business. “They expect legal and prompt transactions. Large-scale property dealings have proven that we are transparent and reliable. They trust us now because we are involved and keep them updated.”
The neo broker also reaches out by organising seminars and keeping his audiences updated. Narain and Sandeep Sadh, CEO, mumbaipropertyexchange.com, write real estate columns for newspapers. Narain is also president of the India Institute of Real Estate (IIRE), which offers a certificate course in real estate.
“The very change of term — from ‘broker’ to ‘consultant’ — illustrates a paradigm shift,” says Rashmi Rohida, director, Aryan Properties. “People now understand that we add value to the earlier service of just
showing every available real estate in the market. It is a consultant’s duty to negotiate with authorities for legal documents, verify the authenticity of the buyer and seller and check loopholes in the lease, if any.”
Almost legal
Harish Pandeya, director, Andromeda Marketing Private Limited, says the profile of the consultant has undergone a sea change as he offers legal expertise that gives him authority throughout the deal.
“We are almost like lawyers now. Buyers are more demanding and having legal know-how saves time and resources. I once faced a situation where a landlady refused to rent her apartment to a non-corporate. She was convinced only when I cited the laws that protected her legal interests.”
Getting the right mix
Real estate consultancy is also no longer a one-man army. The once suspicious broker reluctant to delegate is now scouting for talent and building teams, sometimes with an unusual mix of people.
“My team consists of people from the hospitality industry, airlines and even event management industry. They have great interpersonal skills and a flair for business,” says Narain, who leads a team of nine.
So what goes into making the contemporary consultant? Pandeya says higher education is not a prerequisite but good math skills and the willingness to work on Sundays certainly is.
“I choose people who exude maturity. Customers cannot rely on the judgement of a rookie,” he explains. Narain, though, feels education does lend a touch of professionalism to a consultant’s demeanour. But he cites exceptions too. “I once rejected a highly qualified and competent applicant because he breezily addressed me by my first name.”
Those wanting to make the consultant grade can also avail of training. Associate consultants receive classroom coaching — basics in understanding loans, transactions, phases of payment and handling site visits. Eventually, smaller deals are delegated to them. They get to keep all the incentives on these deals.
Of pdas and databases
Worn-out calculators and dog-eared notebooks do not adorn the broker’s profile anymore. A high-flying corporate and a true techie at heart, he flaunts chauffeurs, laptops and PDA phones with élan.
Also noteworthy is the broker’s database-driven approach. “Our profession will be in shambles if it doesn’t acknowledge the need for a strong database. Gone are the days when the broker paraded the entire city to a client. Now, we believe in putting the best wares on display.
There are tailor-made packages for every area to suit every budget. Every inquiry is answered in a matter of hours and the property package list is e-mailed. Verbal communication is confirmed on paper for credibility and to avoid any confusion,” says Rohida.
Tolani seconds this and highlights that a consultant is only as good as his network. He regularly scans his customer database and keeps in touch with old clients as they ensure business on recommendation.
The frills get fancier
There are many other frills and add-ons that Mumbai’s consultant offer. For instance, if you are looking for the best place to buy electrical fittings or get second-hand furniture, who do you call? Your broker.
If you are looking at a checklist that tells you to ensure that there are no leakages and rodents in the house, that all old curtain rods should be replaced and that kitchen cabinets should be repaired — chances are it is from your broker.
Says Sadh, “From waiting for hours when the client wants to rest to choosing home furnishings and buying electric fittings, a consultant does it all.” He recounts the time he stocked an assortment of Italian breads and confectionery in his car for the client’s children who were accompanying them on site visits.
Consultancy, he jokes, is more a PR job — all about managing individual temperaments and being affirmative to demands. Pandeya learnt an important lesson by identifying this role. “A few years back, I forgot to tell an important client to renew his lease because I did not consider it my ‘job’. I cannot afford to overlook that today.”
The road ahead
With multitasking and super-specialisation, their dreams are getting bigger. “The role of a consultant in generating loans will increase. The future will also see us offering specialist legal views, especially to the NRI community.
Though bigger consultants will consolidate, the individual broker will not fade away.” Narain says, “I see fortnightly webcasts of real estate news as my next challenge.”
http://www.dnaindia.com/report.asp?newsid=1103794&pageid=3
Wednesday, June 13, 2007
Celebrity broker down to last millions
A South Florida real estate broker Carlos Justo, flamboyant founder of Sol Sotheby's International Realty, is in deep money trouble. Justo, who catered to millionaires and became one himself, says: ``I am considering filing personal bankruptcy. I'm fighting for my financial life.''
He, along with some investors, lost $2.35 million in a deal at 3 Indian Creek Island, he says. He is in foreclosure on another property -- at 40 Indian Creek Island, where he now lives. He bought it in '05 for $6.85 million. The debt is around $11 million with interest. (He's trying to sell the house -- for $14.9 million.)
Justo, 51, is fending off a battery of lawsuits, including one from agent Techrin Hijazi, who used to work for him. His net worth, which he says reached $20 million, has plummeted. He estimates it is now $2 million to $3 million.
''I should have really been in bankruptcy court a year ago,'' Justo says. His attorneys are trying to talk him out of it, but he gave them 60 days to ''settle everything'' or he's filing. ``It's a big mess.''
Complicating matters was the ugly split between Justo and Irving A. Padron, his former business partner and CEO. ''I settled with him,'' Justo says. ``I paid him $500,000. I owe him another $800,000. I have no intention of paying him what I owe him. I will see him in court.''
Justo invested in luxury waterfront properties, in addition to 40 Indian Creek -- 36 Indian Creek Island, and the former George Batchelor estate in the 2900 block of North Bay Road in Miami Beach. ''Between those assets alone, I have a debt of over $30 million,'' he says.
His timing was off, he admits. 'The market is slowing down. Everybody knows what's happening in the Miami market because of the condo oversupply. It's going to be a bloodbath out there. You know what the buyers are saying? `Let me wait, why should I pay $10 million for a house when it might be down to $8 million in a year.' ''
Hijazi, 29, worked at Sol Sotheby's for 1 ½ years and appeared alongside Justo in Million Dollar Agents, a TLC reality show. She is now suing Sol Sotheby's, claiming it stiffed her on more than $300,000 in commissions.
She also alleges financial hanky-panky. ''Justo acquired a significant real estate portfolio for himself,'' says her complaint, filed by attorney Richard J. Diaz. 'By late 2005, Justo became overextended . . . In order to `cover' his personal financial shortfalls, Justo began diverting Sol monies to himself. These monies should have been used to pay commissions due to his sales force.''
Not so, says Justo's attorney, Warren Trazenfeld. ''Techrin is looking for commissions she's not entitled to and did not earn. She is simply trying to ruin Mr. Justo's reputation based upon allegations which she is incapable of proving because they are inaccurate.'' Trazenfeld says he and bankruptcy lawyer Joel Tabas are ``trying to work out Justo's financial difficulties.''
Trazenfeld filed a motion to dismiss Hijazi's suit. A hearing is scheduled for Thursday before Miami-Dade Circuit Judge Sarah I. Zabel.
Hijazi is now with Avatar Real Estate Services and formed her own branding as TechrinEstates. She has the $8.9 million listing for Dwyane Wade's Pinecrest home, and the $19.9 million listing for businesswoman Caroline Weiss' Coconut Grove estate.
Justo says he has worked with celebs including Gianni Versace and Jennifer Lopez. He, too, lived big. He travels by limo, shows properties by helicopter, and, he says, is still tops at selling top-tier real estate. ``I don't care if I go to zero. I'll build it back up again. The king isn't going down.''
http://www.miamiherald.com/416/story/137609.html
He, along with some investors, lost $2.35 million in a deal at 3 Indian Creek Island, he says. He is in foreclosure on another property -- at 40 Indian Creek Island, where he now lives. He bought it in '05 for $6.85 million. The debt is around $11 million with interest. (He's trying to sell the house -- for $14.9 million.)
Justo, 51, is fending off a battery of lawsuits, including one from agent Techrin Hijazi, who used to work for him. His net worth, which he says reached $20 million, has plummeted. He estimates it is now $2 million to $3 million.
''I should have really been in bankruptcy court a year ago,'' Justo says. His attorneys are trying to talk him out of it, but he gave them 60 days to ''settle everything'' or he's filing. ``It's a big mess.''
Complicating matters was the ugly split between Justo and Irving A. Padron, his former business partner and CEO. ''I settled with him,'' Justo says. ``I paid him $500,000. I owe him another $800,000. I have no intention of paying him what I owe him. I will see him in court.''
Justo invested in luxury waterfront properties, in addition to 40 Indian Creek -- 36 Indian Creek Island, and the former George Batchelor estate in the 2900 block of North Bay Road in Miami Beach. ''Between those assets alone, I have a debt of over $30 million,'' he says.
His timing was off, he admits. 'The market is slowing down. Everybody knows what's happening in the Miami market because of the condo oversupply. It's going to be a bloodbath out there. You know what the buyers are saying? `Let me wait, why should I pay $10 million for a house when it might be down to $8 million in a year.' ''
Hijazi, 29, worked at Sol Sotheby's for 1 ½ years and appeared alongside Justo in Million Dollar Agents, a TLC reality show. She is now suing Sol Sotheby's, claiming it stiffed her on more than $300,000 in commissions.
She also alleges financial hanky-panky. ''Justo acquired a significant real estate portfolio for himself,'' says her complaint, filed by attorney Richard J. Diaz. 'By late 2005, Justo became overextended . . . In order to `cover' his personal financial shortfalls, Justo began diverting Sol monies to himself. These monies should have been used to pay commissions due to his sales force.''
Not so, says Justo's attorney, Warren Trazenfeld. ''Techrin is looking for commissions she's not entitled to and did not earn. She is simply trying to ruin Mr. Justo's reputation based upon allegations which she is incapable of proving because they are inaccurate.'' Trazenfeld says he and bankruptcy lawyer Joel Tabas are ``trying to work out Justo's financial difficulties.''
Trazenfeld filed a motion to dismiss Hijazi's suit. A hearing is scheduled for Thursday before Miami-Dade Circuit Judge Sarah I. Zabel.
Hijazi is now with Avatar Real Estate Services and formed her own branding as TechrinEstates. She has the $8.9 million listing for Dwyane Wade's Pinecrest home, and the $19.9 million listing for businesswoman Caroline Weiss' Coconut Grove estate.
Justo says he has worked with celebs including Gianni Versace and Jennifer Lopez. He, too, lived big. He travels by limo, shows properties by helicopter, and, he says, is still tops at selling top-tier real estate. ``I don't care if I go to zero. I'll build it back up again. The king isn't going down.''
http://www.miamiherald.com/416/story/137609.html
India property boom 'here to stay'
Although UK property investors have traditionally opted for nearby and well-known locations such as Spain and France, some of the more adventurous have recently cottoned on to the earnings potential of some of the world's emerging markets.
One such market is India, which has seen rapid growth in real estate prices in recent years, particularly in major cities such as Mumbai, where a new breed of affluent young entrepreneurs and business professionals has emerged.
According to a recent article in the Daily Telegraph, the country has experienced massive economic growth, with a level of nine per cent recorded last year - the second fastest since Britain relinquished its hold and India became independent. The demand for new homes in the country is also expected to be healthy, with 20 million properties sought over the next five years, according to the paper.
Furthermore, the publication predicts that by 2015 the real estate market will have experienced a seven-fold growth - potentially offering a number of very lucrative opportunities for Britons who are willing to invest.
Ashish Jagnani, a Mumbai-based real estate analyst for Citi, predicts that the property bubble is in no danger of bursting, as some analysts have feared it might.
"India's real estate opportunity is genuine, large and will last a long while - a prospect not lost on developers and capital providers," he told the publication.
Certainly one developer is looking to take advantage of this trend, as US real estate management giant Jones Lang LaSalle (JLL) recently confirmed details of a merger with India's Trammel Crow Meghraj. The move, one which is set to boost JLL's interests in a burgeoning market, is perhaps proof of the potential on offer in India, or at least the confidence in it that the big firms hold.
If further evidence is required, the Confederation of Real Estate Developers Association of India and Maharashtra Chamber of Housing Industry (MCHI) are set to host the India Property 2007 exhibition in Dubai over the weekend. Some of the world's most weighty investors are based in the emirate, with the conference showcasing what the market has to offer.
Nainesh Shah, chairman of International Exhibitions for the MCHI, commented: “With the current boom in Indian realty, there is a growing interest among NRIs [non-resident Indians] wanting to buy property back home, not just for residential purposes but as an investment option as well."
http://news.assetz.co.uk/articles/3551.html
One such market is India, which has seen rapid growth in real estate prices in recent years, particularly in major cities such as Mumbai, where a new breed of affluent young entrepreneurs and business professionals has emerged.
According to a recent article in the Daily Telegraph, the country has experienced massive economic growth, with a level of nine per cent recorded last year - the second fastest since Britain relinquished its hold and India became independent. The demand for new homes in the country is also expected to be healthy, with 20 million properties sought over the next five years, according to the paper.
Furthermore, the publication predicts that by 2015 the real estate market will have experienced a seven-fold growth - potentially offering a number of very lucrative opportunities for Britons who are willing to invest.
Ashish Jagnani, a Mumbai-based real estate analyst for Citi, predicts that the property bubble is in no danger of bursting, as some analysts have feared it might.
"India's real estate opportunity is genuine, large and will last a long while - a prospect not lost on developers and capital providers," he told the publication.
Certainly one developer is looking to take advantage of this trend, as US real estate management giant Jones Lang LaSalle (JLL) recently confirmed details of a merger with India's Trammel Crow Meghraj. The move, one which is set to boost JLL's interests in a burgeoning market, is perhaps proof of the potential on offer in India, or at least the confidence in it that the big firms hold.
If further evidence is required, the Confederation of Real Estate Developers Association of India and Maharashtra Chamber of Housing Industry (MCHI) are set to host the India Property 2007 exhibition in Dubai over the weekend. Some of the world's most weighty investors are based in the emirate, with the conference showcasing what the market has to offer.
Nainesh Shah, chairman of International Exhibitions for the MCHI, commented: “With the current boom in Indian realty, there is a growing interest among NRIs [non-resident Indians] wanting to buy property back home, not just for residential purposes but as an investment option as well."
http://news.assetz.co.uk/articles/3551.html
Dubai Properties highlights investment opportunities at UAE-South Korea Forum
Addressing government officials, businessmen and decision makers at the forum, Mohamed Binbrek, CEO of Dubai Properties, said: 'With a determined and visionary leadership, the UAE has managed to safeguard the country's development and provide the world a unique atmosphere to do business.
"Our long term strategy is to identify opportunities for investors from both countries. This is in line with the UAE's vision to bridge cultures through commercial initiatives and follows the recent visit of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, and Ruler of Dubai, to South Korea.'
Binbrek observed that South Korean investors have historic links with Dubai, citing the long term presence of companies such as Samsung, LG, Hyundai and others in the UAE. In addition, South Korean real estate developers like Sungwon Corporation and Bando are both developing landmark projects with Dubai Properties at both Business Bay and Culture Village.
South Korea is one of UAE's leading trade partners. Bilateral trade between the countries has doubled from US$7.96 billion in 2003 to US$15.82 billion in 2006.
Dubai Properties also showcased its diversified portfolio of projects including the Business Bay, Culture Village, Tijara Town, The Villa and the Jumeirah Beach Residence at an exhibition that was running concurrently. The exhibition offered Dubai Properties an opportunity to negotiate business development with South Korean investors.
Beating markets like China and India, Dubai deserves to be regarded as a truly remarkable 'Global City, Dubai has a consistently impressive economic growth - 16% last year, he noted.
During the next five years, Dubai Properties will focus on leveraging the full potential gained from close cooperation with corporate partners, investors, and contractors.
'Investors from the GCC and Middle East have consistently looked eastward for viable prospects in sectors such as property development, financial services and trade. We hope to reach out to clients looking to capitalize on our region's dynamic business opportunities and set new targets for growth,' Binbrek said.
During his visit to Korea, Binbrek visited Posco Engineering and Construction and Kumha Engineering and Construction LTD two of leading construction companies in Korea as part of enhancing and developing relations with Korean companies.
http://www.ameinfo.com/123371.html
"Our long term strategy is to identify opportunities for investors from both countries. This is in line with the UAE's vision to bridge cultures through commercial initiatives and follows the recent visit of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, and Ruler of Dubai, to South Korea.'
Binbrek observed that South Korean investors have historic links with Dubai, citing the long term presence of companies such as Samsung, LG, Hyundai and others in the UAE. In addition, South Korean real estate developers like Sungwon Corporation and Bando are both developing landmark projects with Dubai Properties at both Business Bay and Culture Village.
South Korea is one of UAE's leading trade partners. Bilateral trade between the countries has doubled from US$7.96 billion in 2003 to US$15.82 billion in 2006.
Dubai Properties also showcased its diversified portfolio of projects including the Business Bay, Culture Village, Tijara Town, The Villa and the Jumeirah Beach Residence at an exhibition that was running concurrently. The exhibition offered Dubai Properties an opportunity to negotiate business development with South Korean investors.
Beating markets like China and India, Dubai deserves to be regarded as a truly remarkable 'Global City, Dubai has a consistently impressive economic growth - 16% last year, he noted.
During the next five years, Dubai Properties will focus on leveraging the full potential gained from close cooperation with corporate partners, investors, and contractors.
'Investors from the GCC and Middle East have consistently looked eastward for viable prospects in sectors such as property development, financial services and trade. We hope to reach out to clients looking to capitalize on our region's dynamic business opportunities and set new targets for growth,' Binbrek said.
During his visit to Korea, Binbrek visited Posco Engineering and Construction and Kumha Engineering and Construction LTD two of leading construction companies in Korea as part of enhancing and developing relations with Korean companies.
http://www.ameinfo.com/123371.html
India Property 2007 soars to Dubai
The 8th India Property 2007 - Dubai being organized by The Confederation of Real Estate Developers Association of India (CREDAI) and Maharashtra Chamber of Housing Industry (MCHI) will be held at Dubai Renaissance Hotel, Dubai from June 14 – 16, 2007.
India Property 2007, Dubai will have some of the biggest names in the Indian real estate industry, showcasing both residential and commercial properties. Leading developers from places like Mumbai, Navi Mumbai, Pune, Nashik, Goa, Bangalore, and Hyderabad among other places would be participating.
This exhibition is supported by the Ministry of Urban Development, Government of India, with LIC being co-sponsors.
There are an estimated One million Indians residing in the UAE with Dubai being the hub of commerce and industry, and increasingly developing as a major hub for service industries such as IT and Finance. NRIs in Dubai are well placed in society and command the respect of the local people due to their industrious nature and diligence in duty. Asian expatriates account for more than 75% of UAE population with over 40% under 25 years of age. NRIs in Dubai are high net worth individuals, which makes them a potentially rich market for real estate investments in India.
Mr. J.S. Augustine Co-Chairman, International Exhibitions, MCHI said, “India is poised for an unprecedented economic growth. With GDP crossing 9.5% the opportunities for every Indian, NRI and others. The villages have appreciated. Commercial and Residential are yielding high returns. Rentals have grown. There can not be a better time than now to invest in Indian real estate. CREDAI & MCHI facilitating this for NRIs in Dubai is a boon and they can transact with a lot of trust”
Sharing his views on India Property 2007, Dubai, Mr. Nainesh Shah, Chairman, International Exhibitions, MCHI, said, “With the current boom in Indian realty, there is a growing interest among NRIs wanting to buy property back home, not just for residential purposes but as an investment option as well. Moreover, our exhibitions are much looked forward to by Indians settled in Dubai, as they get a wide array of properties to choose, from leading developers and most importantly, the credibility associated with our exhibitions over the years, have made NRIs repose their full faith and trust in us.”
Last years Dubai Property show 2006 was a huge success. The 3 day event saw some very serious and focused visitors at the exhibition, which translated into actual bookings rather than just enquiries. All exhibitors were delighted with the response they received and business generated at the close of the property exhibition.
CREDAI Assurance
CREDAI and MCHI ensure complete transparency and assurance to the customers throughout the entire transaction and guarantee them the amenities and specifications as promised during the deal. In the event of any dispute the consumer can approach CREDAI to assist them in resolving the same.
About CREDAI
Confederation of Real Estate Developers Association of India (CREDAI) – is the apex body representing associations of real estate and housing developers from all over India. Its purpose is to promote housing and real estate developments in an organized and cohesive manner and provide a liaison with government bodies to effectively represent the views and needs of the industry. It has more than 3000 members spread over more than 17 states in India.
About MCHI
MCHI is a member of CREDAI and India’s premier housing and developers associations in India. Established in 1982, in Mumbai, the commercial and construction capital of India, MCHI has a membership of 450 leading developers who account for 90% of the housing supply in Mumbai and its vicinity.
http://www.clickpress.com/releases/Detailed/37121005cp.shtml
India Property 2007, Dubai will have some of the biggest names in the Indian real estate industry, showcasing both residential and commercial properties. Leading developers from places like Mumbai, Navi Mumbai, Pune, Nashik, Goa, Bangalore, and Hyderabad among other places would be participating.
This exhibition is supported by the Ministry of Urban Development, Government of India, with LIC being co-sponsors.
There are an estimated One million Indians residing in the UAE with Dubai being the hub of commerce and industry, and increasingly developing as a major hub for service industries such as IT and Finance. NRIs in Dubai are well placed in society and command the respect of the local people due to their industrious nature and diligence in duty. Asian expatriates account for more than 75% of UAE population with over 40% under 25 years of age. NRIs in Dubai are high net worth individuals, which makes them a potentially rich market for real estate investments in India.
Mr. J.S. Augustine Co-Chairman, International Exhibitions, MCHI said, “India is poised for an unprecedented economic growth. With GDP crossing 9.5% the opportunities for every Indian, NRI and others. The villages have appreciated. Commercial and Residential are yielding high returns. Rentals have grown. There can not be a better time than now to invest in Indian real estate. CREDAI & MCHI facilitating this for NRIs in Dubai is a boon and they can transact with a lot of trust”
Sharing his views on India Property 2007, Dubai, Mr. Nainesh Shah, Chairman, International Exhibitions, MCHI, said, “With the current boom in Indian realty, there is a growing interest among NRIs wanting to buy property back home, not just for residential purposes but as an investment option as well. Moreover, our exhibitions are much looked forward to by Indians settled in Dubai, as they get a wide array of properties to choose, from leading developers and most importantly, the credibility associated with our exhibitions over the years, have made NRIs repose their full faith and trust in us.”
Last years Dubai Property show 2006 was a huge success. The 3 day event saw some very serious and focused visitors at the exhibition, which translated into actual bookings rather than just enquiries. All exhibitors were delighted with the response they received and business generated at the close of the property exhibition.
CREDAI Assurance
CREDAI and MCHI ensure complete transparency and assurance to the customers throughout the entire transaction and guarantee them the amenities and specifications as promised during the deal. In the event of any dispute the consumer can approach CREDAI to assist them in resolving the same.
About CREDAI
Confederation of Real Estate Developers Association of India (CREDAI) – is the apex body representing associations of real estate and housing developers from all over India. Its purpose is to promote housing and real estate developments in an organized and cohesive manner and provide a liaison with government bodies to effectively represent the views and needs of the industry. It has more than 3000 members spread over more than 17 states in India.
About MCHI
MCHI is a member of CREDAI and India’s premier housing and developers associations in India. Established in 1982, in Mumbai, the commercial and construction capital of India, MCHI has a membership of 450 leading developers who account for 90% of the housing supply in Mumbai and its vicinity.
http://www.clickpress.com/releases/Detailed/37121005cp.shtml
Hiranandanis rope in Firdose Vandrevala to head realty co
MUMBAI: Hirco, the newly-floated real estate firm by Mumbai-based developer Niranjan Hiranandani, has appointed Firdose Vandrevala as the chairman and managing director of the company. This makes Hirco the first unlisted real estate firm to appoint a professional from outside the promoter family. Mr Vandrevala resigned from Motorola India on Monday. Confirming the development, Mr Hiranandani said, “Mr Vandrevala is joining as CMD of Hirco Development and will look after the Indian operations. I will continue as the chairman of Hirco, our London-listed entity.” The move could indicate the shift in the management of family-run enterprises, mainly in real estate. Most realty companies in India are closely-held with the equity stakes controlled by family members. Mr Vandrevala is joining the Hiranandani group a year after the Mumbai-based family restructured with the Hiranandani brothers — Niranjan and Surendra — chalking out individual business plans. The two brothers are diversifying and consolidating their business operations in areas such as healthcare, retail, hotels and education. Mr Vandrevala, who earlier headed Tata Power before moving to Motorola, was responsible for developing the US-based telecommunication company’s brand in India. Mr Vandrevala was with the Tata group for over 33 years, with his last position in the Tata group being chairman of Tata Teleservices. He also held positions at Tata Power as its managing director and at Tata Steel as its deputy managing director. Hirco recently raised $750 million in the Alternate Investment Market of London and is developing properties in Navi Mumbai, Jaipur and Chennai. The group has ongoing development activities at Powai and Thane where nearly 400 acres are under development for the past decade. The group turnover is over Rs 1,000 crore. The under-construction 90-storey Marina tower project in Dubai, touted as the world’s tallest residential building, is being handled by Niranjan’s son, Darshan. The Hiranandani group began operations in the early 1980s. The first project was in Versova and later the group developed Powai, then a quarry. It is now considered one of the most upmarket suburbs of Mumbai “Our business is growing so rapidly that to keep pace, it makes sense for different people in the family to look after different projects. We want each of our businesses to grow over 300% in the next few years. The family business restructuring will help us achieve the target,” Niranjan Hiranandani told ET.
The introduction of foreign direct investment in the industry has led major developers to expand operations and pursue larger land parcels including in Tier II cities. The need to acquire large parcels in multiple locations prompted the need for the group to pursue parallel acquisitions with different finance partners. As a result, around a year back the brothers divided their responsibilities to give an individual focus to existing as well as new businesses. However, both brothers look after other businesses activities together, taking individual responsibilities in each business. While Niranjan is in charge of healthcare and education sectors, Surendra focuses on the operations of retail and hotel businesses of the family, which is spread in three firms — Haiko Supermarket, Loft, Culture Shop and Rodas Hotel. Niranjan said Hiranandani Hospitals is in the process of developing five large-scale hospital projects in various parts of India and has tied up with Fortis Healthcare, the hospital business of the Ranbaxy group, to manage the hospitals. Surendra’s Hiranandani Upscale has just launched a 110-acre integrated township in Chennai for Rs 2,000 crores. His group has also identified large-scale projects in southern India in places like Bangalore and Hyderabad. He is also negotiating for strategic tie-ups with financial partners where synergy matches. On the retail front, Surendra said the group’s footwear firm, Loft, is looking for strategic tie-ups to expand its business while Haiko and Culture Shop are scouting for acquisitions.
http://economictimes.indiatimes.com/Markets/Real_Estate/Realty_Trends/Hiranandanis_rope_in_Firdose_Vandrevala_to_head_realty_co/articleshow/2118498.cms
The introduction of foreign direct investment in the industry has led major developers to expand operations and pursue larger land parcels including in Tier II cities. The need to acquire large parcels in multiple locations prompted the need for the group to pursue parallel acquisitions with different finance partners. As a result, around a year back the brothers divided their responsibilities to give an individual focus to existing as well as new businesses. However, both brothers look after other businesses activities together, taking individual responsibilities in each business. While Niranjan is in charge of healthcare and education sectors, Surendra focuses on the operations of retail and hotel businesses of the family, which is spread in three firms — Haiko Supermarket, Loft, Culture Shop and Rodas Hotel. Niranjan said Hiranandani Hospitals is in the process of developing five large-scale hospital projects in various parts of India and has tied up with Fortis Healthcare, the hospital business of the Ranbaxy group, to manage the hospitals. Surendra’s Hiranandani Upscale has just launched a 110-acre integrated township in Chennai for Rs 2,000 crores. His group has also identified large-scale projects in southern India in places like Bangalore and Hyderabad. He is also negotiating for strategic tie-ups with financial partners where synergy matches. On the retail front, Surendra said the group’s footwear firm, Loft, is looking for strategic tie-ups to expand its business while Haiko and Culture Shop are scouting for acquisitions.
http://economictimes.indiatimes.com/Markets/Real_Estate/Realty_Trends/Hiranandanis_rope_in_Firdose_Vandrevala_to_head_realty_co/articleshow/2118498.cms
Govt may curb demand in real estate
New Delhi: The Government on Tuesday indicated it intended to curb demand in the “overheated” housing and real estate sectors.
"Intention is to constraint demand in those sectors where there are signs of what you call overheating and example of that could be real estate and housing. I think in these sectors there is reduction in demand," Finance Minister P Chidambaram told reporters.
India’s industrial output increased 13.6 percent in April compared to 9.9 percent in the same month last year, but the Government is concerned that the economy might be overheating.
The Associated Press reports Chidambaram has warned banks against too much lending in real estate, which experts believe is drawing large amounts of speculative money that could result in a property bubble.
Chidambaram, however, said he had no intention of reducing demand in other sectors. The impact of his statement was immediate on Dalal Street, where nearly all the real estate stocks lost value, notwithstanding a modest 48-point gain in the benchmark index.
All realty stocks gained on Monday when the DLF IPO opened for subscription on a strong note. Unitech, the biggest listed real estate firm, saw its shares plummeting by 3.4 per cent or Rs 17.45 to Rs 490.
Another leading realty developer Parsvnath dropped 1.73 per cent to Rs 312.35 on the Bombay Stock Exchange, while stocks like Ansal Properties, D S Kulkarni, Sobha Developers and Atlanta Ltd also fell sharply.
http://www.ibnlive.com/news/govt-may-curb-demand-in-real-estate/42784-7.html
"Intention is to constraint demand in those sectors where there are signs of what you call overheating and example of that could be real estate and housing. I think in these sectors there is reduction in demand," Finance Minister P Chidambaram told reporters.
India’s industrial output increased 13.6 percent in April compared to 9.9 percent in the same month last year, but the Government is concerned that the economy might be overheating.
The Associated Press reports Chidambaram has warned banks against too much lending in real estate, which experts believe is drawing large amounts of speculative money that could result in a property bubble.
Chidambaram, however, said he had no intention of reducing demand in other sectors. The impact of his statement was immediate on Dalal Street, where nearly all the real estate stocks lost value, notwithstanding a modest 48-point gain in the benchmark index.
All realty stocks gained on Monday when the DLF IPO opened for subscription on a strong note. Unitech, the biggest listed real estate firm, saw its shares plummeting by 3.4 per cent or Rs 17.45 to Rs 490.
Another leading realty developer Parsvnath dropped 1.73 per cent to Rs 312.35 on the Bombay Stock Exchange, while stocks like Ansal Properties, D S Kulkarni, Sobha Developers and Atlanta Ltd also fell sharply.
http://www.ibnlive.com/news/govt-may-curb-demand-in-real-estate/42784-7.html
JLL-TCM merger creates India’s largest real estate consultancy
NEW DELHI, JUN 12: Leading real estate consultancies Jones Lang LaSalle (JLL) and Trammell Crow Meghraj (TCM) announced their merger on Tuesday to form the largest real estate services firm in the country under the name, Jones Lang LaSalle Meghraj.
While the market share of the new entity will be 35% (taking into account all property consultants), it would be 50% of the international property consultants sector.
The total real estate under management under JLL Meghraj will be a colossal 44 million sq ft, combining 21 million sq ft of JLL and 23.2 million sq ft of TCM.
The combined leasing transactions will now be 22 million sq ft, the project and development services would be more than 21 million sq ft.
The total strength of JLL Meghraj will now be 2,800 (expected to grow by 35% by 2009), with offices in 10 locations. With a combined turnover of $70 million for 2007, the target is to cross the $100 million mark by 2009.
“The new entity will offer new services also, like a hotel division, new capital markets as well as asset and shopping center management,” says Anuj Puri, country head, JLL Meghraj. The merger takes place after Meghraj Properties bought back the equity of Trammell Crow and then after contemplating the offers, chose JLL as its partner. Trammell Crow was taken over globally in 2006 by CB Richard Ellis.
“With TCM being a dominant player in the domestic market and JLL having international expertise, the new merged entity will definitely be a force to reckon with in the real estate sector,” says Puri.
http://www.financialexpress.com/fe_full_story.php?content_id=166976
While the market share of the new entity will be 35% (taking into account all property consultants), it would be 50% of the international property consultants sector.
The total real estate under management under JLL Meghraj will be a colossal 44 million sq ft, combining 21 million sq ft of JLL and 23.2 million sq ft of TCM.
The combined leasing transactions will now be 22 million sq ft, the project and development services would be more than 21 million sq ft.
The total strength of JLL Meghraj will now be 2,800 (expected to grow by 35% by 2009), with offices in 10 locations. With a combined turnover of $70 million for 2007, the target is to cross the $100 million mark by 2009.
“The new entity will offer new services also, like a hotel division, new capital markets as well as asset and shopping center management,” says Anuj Puri, country head, JLL Meghraj. The merger takes place after Meghraj Properties bought back the equity of Trammell Crow and then after contemplating the offers, chose JLL as its partner. Trammell Crow was taken over globally in 2006 by CB Richard Ellis.
“With TCM being a dominant player in the domestic market and JLL having international expertise, the new merged entity will definitely be a force to reckon with in the real estate sector,” says Puri.
http://www.financialexpress.com/fe_full_story.php?content_id=166976
Biggies see growth in hotel biz
Mumbai, June 12: In the past, hotels were owned by players like East India Hotels and Taj. More recently, real estate players like DLF, Unitech, Runwal and Raheja got into the business. Apparently, there is room for more and there's money to be made.
Good enough reason for people like Rajeev Chandrasekhar and Vijay Mallya to dig their hands into the business.
Chandrasekhar made a killing in 2005 when he sold his stake in BPL Mobile for Rs 1,200 crore. A part of this money is now being used to invest in the booming business. Hindusthan Infrastructure Projects & Engineering (HIPE), an arm of Chandrasekhar's investment company — Jupiter Capital — has identified a 75 acre property at Chikmanglur in Karnataka.
"We will be buying another 2-3 properties in the current financial year," said an HIPE official.
The company is also looking to partner with state governments to develop large hotel projects. "Though the initial focus is on southern India, we are open to expanding anywhere in India, provided we get good land or a ready resort to acquire," the official added.
A year ago, Chandrasekhar, who also serves on the board of GoAir, had bought a 21 room heritage resort — Surya Samudra — near Thiruvananthapuram in Kerala. More recently, he bought 10-15 acres of land each to build hotels in Mahabalipuram in Tamil Nadu and Kumarakom in Kerala. Then there is the flamboyant Mallya, chairman of the UB group.
While Mallya owns a few resorts in South Africa, sources close to him say he is now keen on spreading his wings in India.
These investments, sources added, will be made in his personal capacity and not through the Bangalore-based UB group that has interests in everything from beer-to-aviation.
Mallya's VJM Resorts is looking at owning resorts in coral island Lakshadweep and mainland Kerala. Mallya's hospitality interests could unlock synergies with his aviation venture.
Then there is Ramesh Mansukhani, promoter of pipe maker Man Industries. He too has been scouting the country for land to set up five star hotels. While all of these people are attempting to set up hotels, there is another breed of individuals like Jerry Rao, Ravi Jaipuria (Pepsi's largest bottler), and Gopal Jiwarjka (promoter of consumer electronics company Salora International), who have pumped in money as investors seeking good returns on their investments.
Jerry Rao, the founder of software company Mphasis, has invested in Royal Orchid Group of Hotels, while both Jaipuria and Jiwarjka have invested in LemonTree, a mid-market hotel chain.
Interests in hospitality business from the corporate world stems from growth rates in the industry as well as forecasts of explosive demand in the future on the back of domestic and international tourists. Clearly, everybody is hoping to cash in on the boom
http://www.centralchronicle.com/20070613/1306161.htm
Good enough reason for people like Rajeev Chandrasekhar and Vijay Mallya to dig their hands into the business.
Chandrasekhar made a killing in 2005 when he sold his stake in BPL Mobile for Rs 1,200 crore. A part of this money is now being used to invest in the booming business. Hindusthan Infrastructure Projects & Engineering (HIPE), an arm of Chandrasekhar's investment company — Jupiter Capital — has identified a 75 acre property at Chikmanglur in Karnataka.
"We will be buying another 2-3 properties in the current financial year," said an HIPE official.
The company is also looking to partner with state governments to develop large hotel projects. "Though the initial focus is on southern India, we are open to expanding anywhere in India, provided we get good land or a ready resort to acquire," the official added.
A year ago, Chandrasekhar, who also serves on the board of GoAir, had bought a 21 room heritage resort — Surya Samudra — near Thiruvananthapuram in Kerala. More recently, he bought 10-15 acres of land each to build hotels in Mahabalipuram in Tamil Nadu and Kumarakom in Kerala. Then there is the flamboyant Mallya, chairman of the UB group.
While Mallya owns a few resorts in South Africa, sources close to him say he is now keen on spreading his wings in India.
These investments, sources added, will be made in his personal capacity and not through the Bangalore-based UB group that has interests in everything from beer-to-aviation.
Mallya's VJM Resorts is looking at owning resorts in coral island Lakshadweep and mainland Kerala. Mallya's hospitality interests could unlock synergies with his aviation venture.
Then there is Ramesh Mansukhani, promoter of pipe maker Man Industries. He too has been scouting the country for land to set up five star hotels. While all of these people are attempting to set up hotels, there is another breed of individuals like Jerry Rao, Ravi Jaipuria (Pepsi's largest bottler), and Gopal Jiwarjka (promoter of consumer electronics company Salora International), who have pumped in money as investors seeking good returns on their investments.
Jerry Rao, the founder of software company Mphasis, has invested in Royal Orchid Group of Hotels, while both Jaipuria and Jiwarjka have invested in LemonTree, a mid-market hotel chain.
Interests in hospitality business from the corporate world stems from growth rates in the industry as well as forecasts of explosive demand in the future on the back of domestic and international tourists. Clearly, everybody is hoping to cash in on the boom
http://www.centralchronicle.com/20070613/1306161.htm
Subscribe to DLF IPO as a leading property developer
DLF, a leading real estate company, is open for subscription with an initial public offer, IPO of 175,000,000 equity shares of Rs 2 each through a 100% book building process.
The issue would constitute 10.27% of the fully diluted post-issue capital of the Company.
Niche Brokerage report on DLF IPO:
Company Snapshot
DLF is the largest real estate developer in India in terms of the area of completed residential and commercial developments with approx 224 mn sq.ft, including 22 urban colonies as well as an entire integrated 3,000 acre township, DLF City, Gurgaon. DLF’s primary business is in three verticals namely development of residential, commercial and retail properties spanning in all aspects of real estate development such as identification, acquisition of land, planning, execution and marketing of projects, maintenance and management of completed developments. DLF is also expanding its wings by entering into the infrastructure, SEZ and hotel, insurance businesses.
Land Reserve
DLF has land reserve in various regions across India amounting to 10,255 acres with an aggregate estimated developable area of 574 mnsq.ft, which includes 4 mnsq.ft of completed development and 44 mnsq.ft under construction. Of the approx 574 mnsq.ft, nearly 30% is located in or near developed urban areas. The unique feature of DLF land Reserve compared to its peers is that more than 90% of its land reserve is available as large, contiguous plots of land beneficial to develop mega townships.
In addition to the land reserves of 10,255 acres, DLF also has 554 acres of land arrangement. Thus, the current land reserve is sufficient for the planned development of over next 10 years for DLF providing major competitive advantage as well as protection against land price inflation.
Established brand name and reputation for project execution
DLF’s position as a leading property developer is largely due to its established execution capabilities, reputation for providing prompt payment to landowners upon the acquisition of their land, developing and completing projects in a timely manner. Internationally and nationally renowned architectural consultants, such as Hafeez Contractor, the Jerde Partnership Inc. and Mohit Gujral, as well as design and engineering, construction and project management firms are associated with its projects, thus giving brand image and demands premium value for its projects compared to its peers.
New Business- to provide upside
DLF is diversifying into other real estate related businesses such as the development of SEZs, multiplex cinema, super luxury & budget hotels. In order to ensure the high quality of its projects, DLF has entered into joint ventures with WSP to provide engineering and design services and Laing O’Rourke to provide construction expertise. Further, DLF recently acquired an interest in Feedback Ventures to provide management consulting services.
Concerns
DLF owns only 0.5% of the land reserves
Though DLF and its subsidiaries own 1,160 acres, or 11.3%, of the 10,255 acres that comprise the land reserves as of April 30, 2007, DLF directly owns only 0.5% of these land reserves. The balance 10.8% is held by the subsidiaries of DLF. Of the 1,160 acres that DLF own, 38 acres have been leased to DLF by governmental authorities on a long-term basis and DLF has freehold title to the balance.
The remaining land reserves are subject to agreements to purchase, development rights agreements or memoranda of understanding for acquisition.
Outlook & Valuation
We would recommend investors to subscribe to DLF issue based on its position as a leading property developer along with established execution capabilities. Though, on the face of it DLF’s issue pricing seems aggressive, it does not capture the potential upside from the leasing commercial real estate business model & the huge opportunities related to SEZ, hospitality, hotels and other joint ventures (two mega township projects planned with the Nakheel Group of UAE).
http://www.moneycontrol.com/india/news/ipo-issues-open/subscribe-to-dlf-ipo-asleading-property-developer/286164
The issue would constitute 10.27% of the fully diluted post-issue capital of the Company.
Niche Brokerage report on DLF IPO:
Company Snapshot
DLF is the largest real estate developer in India in terms of the area of completed residential and commercial developments with approx 224 mn sq.ft, including 22 urban colonies as well as an entire integrated 3,000 acre township, DLF City, Gurgaon. DLF’s primary business is in three verticals namely development of residential, commercial and retail properties spanning in all aspects of real estate development such as identification, acquisition of land, planning, execution and marketing of projects, maintenance and management of completed developments. DLF is also expanding its wings by entering into the infrastructure, SEZ and hotel, insurance businesses.
Land Reserve
DLF has land reserve in various regions across India amounting to 10,255 acres with an aggregate estimated developable area of 574 mnsq.ft, which includes 4 mnsq.ft of completed development and 44 mnsq.ft under construction. Of the approx 574 mnsq.ft, nearly 30% is located in or near developed urban areas. The unique feature of DLF land Reserve compared to its peers is that more than 90% of its land reserve is available as large, contiguous plots of land beneficial to develop mega townships.
In addition to the land reserves of 10,255 acres, DLF also has 554 acres of land arrangement. Thus, the current land reserve is sufficient for the planned development of over next 10 years for DLF providing major competitive advantage as well as protection against land price inflation.
Established brand name and reputation for project execution
DLF’s position as a leading property developer is largely due to its established execution capabilities, reputation for providing prompt payment to landowners upon the acquisition of their land, developing and completing projects in a timely manner. Internationally and nationally renowned architectural consultants, such as Hafeez Contractor, the Jerde Partnership Inc. and Mohit Gujral, as well as design and engineering, construction and project management firms are associated with its projects, thus giving brand image and demands premium value for its projects compared to its peers.
New Business- to provide upside
DLF is diversifying into other real estate related businesses such as the development of SEZs, multiplex cinema, super luxury & budget hotels. In order to ensure the high quality of its projects, DLF has entered into joint ventures with WSP to provide engineering and design services and Laing O’Rourke to provide construction expertise. Further, DLF recently acquired an interest in Feedback Ventures to provide management consulting services.
Concerns
DLF owns only 0.5% of the land reserves
Though DLF and its subsidiaries own 1,160 acres, or 11.3%, of the 10,255 acres that comprise the land reserves as of April 30, 2007, DLF directly owns only 0.5% of these land reserves. The balance 10.8% is held by the subsidiaries of DLF. Of the 1,160 acres that DLF own, 38 acres have been leased to DLF by governmental authorities on a long-term basis and DLF has freehold title to the balance.
The remaining land reserves are subject to agreements to purchase, development rights agreements or memoranda of understanding for acquisition.
Outlook & Valuation
We would recommend investors to subscribe to DLF issue based on its position as a leading property developer along with established execution capabilities. Though, on the face of it DLF’s issue pricing seems aggressive, it does not capture the potential upside from the leasing commercial real estate business model & the huge opportunities related to SEZ, hospitality, hotels and other joint ventures (two mega township projects planned with the Nakheel Group of UAE).
http://www.moneycontrol.com/india/news/ipo-issues-open/subscribe-to-dlf-ipo-asleading-property-developer/286164
Unitech, Parsvnath Costs Rise as India Curbs Loans
June 12 (Bloomberg) -- Unitech Ltd., India's most valuable real-estate company, and Parsvnath Developers Ltd. will have to pay more for loans because of a ban on overseas borrowing, forcing them to incur the highest interest costs in five years.
The finance ministry's May 18 ruling will push up Unitech's funding charges at least 5 percentage points, Managing Director Sanjay Chandra said. Parsvnath was quoted 14 percent interest on a loan from an Indian state-owned bank, Chief Financial Officer Ravi S. Pani said.
By curbing overseas loans to developers, India wants to cool land prices that have as much as tripled in three years and driven the rupee to a nine-year high. Still, higher costs may deter builders from constructing the 10 million housing units a year India is estimated to need by 2030, according to the Asian Development Bank.
``I don't understand why the government has throttled this avenue and singled out the real-estate industry,'' said N.K. Ahuja, chief financial officer at Eldeco Group, a New Delhi- based developer with at least 35 billion rupees ($860 million) of projects. ``We were looking at raising funds through this route but now we'll end up paying fancy interest rates to domestic lenders.''
Shares of Parsvnath closed down 1.7 percent on the Bombay Stock Exchange after earlier posting the largest decline in two months. Ansal Properties & Infrastructure Ltd. slumped 6.1 percent, the biggest drop in 20 months, while Unitech fell 3.4 percent. Eldeco shares dropped 0.5 percent to a three-month low.
Need Loans
Indian builders need loans to buy land, steel and cement as Asia's fastest wage growth makes homes more affordable. The Reserve Bank of India, the nation's central bank, asked banks to curb loans to the real-estate sector, making it harder for developers to obtain cheap financing.
``The instruction is to constrain demand in sectors where there are what you call signs of overheating, examples of which are real estate and housing,'' Finance Minister Palaniappan Chidambaram said in New Delhi today. ``In those sectors, I think there is some reduction in demand.''
The Reserve Bank has raised its key overnight lending rate six times in the past 1 1/2 years to slow record bank lending. India's central bank also raised banks' reserve requirements three times since December to curb loans growth.
``More than interest rates, the concern for developers is the availability of funds,'' Unitech's Chandra said in an e- mailed response to questions.
Rule Change
Unitech was about to secure an overseas loan when the finance ministry changed the rules, he said.
``Indian banks are not in a position to meet the funding requirements for large projects being undertaken by the bigger developers for various reasons, single borrower limits, high risk weights for real estate lending,'' he said.
Parsvnath, which is building malls at New Delhi's metro rail stations, plans to borrow 20 billion rupees in the next two years to buy land and build homes, Pani said.
He rejected the 2 billion rupee loan offer from the state- run bank because of the high interest rate, he said, without identifying the bank. Overseas rates are lower.
``The rule will force us to compromise on borrowing costs,'' Pani said in an interview in New Delhi, where the company is based. ``It will also impact us as far as timely generation of the funds is concerned.''
Parsvnath plans to raise 5 billion rupees in the next three months, Pani said. The company, which is developing 153 million square feet (14.21 million square meters) of townships, shopping malls and trade zones in 17 states across India, aims to invest as much as 50 billion rupees in the next two years and will meet the remaining 30 billion rupees of capital requirement from its own cash reserves and partnerships with investors, he said.
Home Shortage
India's $12 billion real-estate industry is growing 30 percent a year, according to Ernst & Young LLP. The nation faces a shortage of 24.7 million housing units in urban areas, according to the housing ministry. India's urban population is expected to rise to 461 million by 2025 from 286 million.
Indian companies want to tap overseas lenders because the benchmark rate for companies borrowing in London is more than 3 percentage points lower than the comparable rate in India. The six-month dollar-denominated London Interbank Offered Rate is at 5.33 percent, according to data on the Bloomberg. The comparable money-market rate in India is 8.75 percent.
Chidambaram on April 19 asked state-run banks to slow lending to high-risk businesses including real estate.
``Definitely, the ban will have an impact on the real- estate companies as the Reserve Bank of India has blocked all the avenues for real-estate developers to raise the funds at a cheaper rate,'' said S.N. Gupta, chief financial officer of Era Constructions (India) Ltd. ``We were having certain plans to raise the funds for our real estate company in the overseas market but won't be able to do it now.''
The company plans to raise as much as 6 billion rupees in the fiscal year ending March 31, he said.
To contact the reporter on this story: Kartik Goyal in New Delhi at kgoyal@bloomberg.net . Last Updated: June 12, 2007 08:23 EDT
http://www.bloomberg.com/apps/news?pid=20601087&sid=awMy7Lw2hlBw&refer=home
The finance ministry's May 18 ruling will push up Unitech's funding charges at least 5 percentage points, Managing Director Sanjay Chandra said. Parsvnath was quoted 14 percent interest on a loan from an Indian state-owned bank, Chief Financial Officer Ravi S. Pani said.
By curbing overseas loans to developers, India wants to cool land prices that have as much as tripled in three years and driven the rupee to a nine-year high. Still, higher costs may deter builders from constructing the 10 million housing units a year India is estimated to need by 2030, according to the Asian Development Bank.
``I don't understand why the government has throttled this avenue and singled out the real-estate industry,'' said N.K. Ahuja, chief financial officer at Eldeco Group, a New Delhi- based developer with at least 35 billion rupees ($860 million) of projects. ``We were looking at raising funds through this route but now we'll end up paying fancy interest rates to domestic lenders.''
Shares of Parsvnath closed down 1.7 percent on the Bombay Stock Exchange after earlier posting the largest decline in two months. Ansal Properties & Infrastructure Ltd. slumped 6.1 percent, the biggest drop in 20 months, while Unitech fell 3.4 percent. Eldeco shares dropped 0.5 percent to a three-month low.
Need Loans
Indian builders need loans to buy land, steel and cement as Asia's fastest wage growth makes homes more affordable. The Reserve Bank of India, the nation's central bank, asked banks to curb loans to the real-estate sector, making it harder for developers to obtain cheap financing.
``The instruction is to constrain demand in sectors where there are what you call signs of overheating, examples of which are real estate and housing,'' Finance Minister Palaniappan Chidambaram said in New Delhi today. ``In those sectors, I think there is some reduction in demand.''
The Reserve Bank has raised its key overnight lending rate six times in the past 1 1/2 years to slow record bank lending. India's central bank also raised banks' reserve requirements three times since December to curb loans growth.
``More than interest rates, the concern for developers is the availability of funds,'' Unitech's Chandra said in an e- mailed response to questions.
Rule Change
Unitech was about to secure an overseas loan when the finance ministry changed the rules, he said.
``Indian banks are not in a position to meet the funding requirements for large projects being undertaken by the bigger developers for various reasons, single borrower limits, high risk weights for real estate lending,'' he said.
Parsvnath, which is building malls at New Delhi's metro rail stations, plans to borrow 20 billion rupees in the next two years to buy land and build homes, Pani said.
He rejected the 2 billion rupee loan offer from the state- run bank because of the high interest rate, he said, without identifying the bank. Overseas rates are lower.
``The rule will force us to compromise on borrowing costs,'' Pani said in an interview in New Delhi, where the company is based. ``It will also impact us as far as timely generation of the funds is concerned.''
Parsvnath plans to raise 5 billion rupees in the next three months, Pani said. The company, which is developing 153 million square feet (14.21 million square meters) of townships, shopping malls and trade zones in 17 states across India, aims to invest as much as 50 billion rupees in the next two years and will meet the remaining 30 billion rupees of capital requirement from its own cash reserves and partnerships with investors, he said.
Home Shortage
India's $12 billion real-estate industry is growing 30 percent a year, according to Ernst & Young LLP. The nation faces a shortage of 24.7 million housing units in urban areas, according to the housing ministry. India's urban population is expected to rise to 461 million by 2025 from 286 million.
Indian companies want to tap overseas lenders because the benchmark rate for companies borrowing in London is more than 3 percentage points lower than the comparable rate in India. The six-month dollar-denominated London Interbank Offered Rate is at 5.33 percent, according to data on the Bloomberg. The comparable money-market rate in India is 8.75 percent.
Chidambaram on April 19 asked state-run banks to slow lending to high-risk businesses including real estate.
``Definitely, the ban will have an impact on the real- estate companies as the Reserve Bank of India has blocked all the avenues for real-estate developers to raise the funds at a cheaper rate,'' said S.N. Gupta, chief financial officer of Era Constructions (India) Ltd. ``We were having certain plans to raise the funds for our real estate company in the overseas market but won't be able to do it now.''
The company plans to raise as much as 6 billion rupees in the fiscal year ending March 31, he said.
To contact the reporter on this story: Kartik Goyal in New Delhi at kgoyal@bloomberg.net . Last Updated: June 12, 2007 08:23 EDT
http://www.bloomberg.com/apps/news?pid=20601087&sid=awMy7Lw2hlBw&refer=home
DLF IPO: Should you subscribe?
The much-awaited DLF IPO has finally hit the stands. Founded in 1946, the company is the largest real-estate developer in India and its IPO is poised to be the largest issue to hit the primary markets raising Rs 9,625 crore.With a track record of successfully developing 220 million square feet of real estate projects, DLF is an established brand name with premium positioning in lucrative NCR market.Even though there are no concerns about quality of the management or the company's executing capabilities, questions are being raised on the valuations front. The proceeds of the IPO would be used for acquiring new lands and retiring the long-term debt.First Global, a Mumbai based brokerage house, maintains that the IPO is overpriced based on the Net Present Value (NPV) of the company's business. According to them, at the price band of Rs 500-550, the stock is at a premium of 21-33 per cent where the NPV of DLF's business works out to Rs 413 per share.
What makes it attractive?According to reports, the company should benefit from economies of scale as it has a land bank of around 10,225 acres translating into a developable land area of about 573.8 million square feet.DLF also enjoys major competitive advantage as well as buffer against the land price inflation due to the relatively low acquisition cost of land.Apart from the real estate development, DLF is ramping up business by entering into new growth areas like hospitality, multiplex, insurance and healthcare that are expected to make substantial value addition.Since most of the land reserves is located in and around prominent cities across the country, it augurs well for DLF when rest of the real estate majors are finding it hard to get hold of qualitative lands.The management team of the company is well poised to take the company forward with most of them having over 20 years of experience in the real estate sector at a time of talent crunch in the industry.High valuation?Even though 41 per cent of the IPO was subscribed in the first hour of opening on Monday, questions are raised about valuations and financial performance of the company.Out of the Rs 4,034 crore sales in FY07, sales of about Rs 2,401 crore has been done to the DLF Assets Pvt Limited (DAL) representing a jump in 59.5 per cent of total sales and 59.6 per cent surge in profit before tax.Ironically DAL, a promoter group company has not paid has not paid Rs 2,350 crore as on 31 March and the amount was classified in the balance sheet as Rs 740 crore under debtors and Rs 1,610 core as loans and advances. According to RHP as on May 25, 2007, DLF has received Rs 1,500 crore from DAL.Out of the total debt of Rs 9,932.8 crore, 75 per cent is on a floating rate making the company susceptible to the risks of raising interest rate scenario.With the rising interest rates, retail loans have been growing at a snails pace resulting in reduced off-take of residential properties from the builders. Adding to these worries, regulators are taking regressive steps fueling the concerns of bubble formation in the realty sector.The recent steps taken by the regulators like curbs on external commercial borrowings by the real estate companies, raising the risk on property loans would have dampening effect on the growth prospects of the company in real estate space.If the doomsayers have their way, the current valuation of residential / commercial property might see re-rating, resulting in the reduced enterprise valuation amidst cool-off in property prices in some pockets of the country.Strong momentumHowever, with the kind of growth momentum we are seeing in the economy there is still enough headroom for company to tap growing need for the residential and commercial property space.International private equity funds are chasing the Indian realty growth story and are investing in Indian real estate companies. This renewed interest from overseas would help the realty companies to deliver decent returns in the times to come."The IPO looks attractive at the lower price band of Rs 500, but one has to stay invested for the longer term," said Amitabh Chakraborty, President (Equity), Religare Securities.At the offer price band of Rs 500-550, DLF’s PE works out to 43.9–48.2 times FY2007 EPS. According to Emkay PCG Research, even though this is a considerably high PE, all the other prominent real estate players are trading at higher price to earning multiples.It makes sense to invest in the issue from the long-term perspective as the long-term story of the country is intact. Even though there are concerns about valuations on whether the issue is over-priced or formation of bubble in the realty sector, the company is poised to benefit from the robustness in the Indian economy
http://www.ndtvprofit.com/homepage/storybusinessnew.asp?id=38801&template=&cache=6/12/2007%209:01:54%20AM
What makes it attractive?According to reports, the company should benefit from economies of scale as it has a land bank of around 10,225 acres translating into a developable land area of about 573.8 million square feet.DLF also enjoys major competitive advantage as well as buffer against the land price inflation due to the relatively low acquisition cost of land.Apart from the real estate development, DLF is ramping up business by entering into new growth areas like hospitality, multiplex, insurance and healthcare that are expected to make substantial value addition.Since most of the land reserves is located in and around prominent cities across the country, it augurs well for DLF when rest of the real estate majors are finding it hard to get hold of qualitative lands.The management team of the company is well poised to take the company forward with most of them having over 20 years of experience in the real estate sector at a time of talent crunch in the industry.High valuation?Even though 41 per cent of the IPO was subscribed in the first hour of opening on Monday, questions are raised about valuations and financial performance of the company.Out of the Rs 4,034 crore sales in FY07, sales of about Rs 2,401 crore has been done to the DLF Assets Pvt Limited (DAL) representing a jump in 59.5 per cent of total sales and 59.6 per cent surge in profit before tax.Ironically DAL, a promoter group company has not paid has not paid Rs 2,350 crore as on 31 March and the amount was classified in the balance sheet as Rs 740 crore under debtors and Rs 1,610 core as loans and advances. According to RHP as on May 25, 2007, DLF has received Rs 1,500 crore from DAL.Out of the total debt of Rs 9,932.8 crore, 75 per cent is on a floating rate making the company susceptible to the risks of raising interest rate scenario.With the rising interest rates, retail loans have been growing at a snails pace resulting in reduced off-take of residential properties from the builders. Adding to these worries, regulators are taking regressive steps fueling the concerns of bubble formation in the realty sector.The recent steps taken by the regulators like curbs on external commercial borrowings by the real estate companies, raising the risk on property loans would have dampening effect on the growth prospects of the company in real estate space.If the doomsayers have their way, the current valuation of residential / commercial property might see re-rating, resulting in the reduced enterprise valuation amidst cool-off in property prices in some pockets of the country.Strong momentumHowever, with the kind of growth momentum we are seeing in the economy there is still enough headroom for company to tap growing need for the residential and commercial property space.International private equity funds are chasing the Indian realty growth story and are investing in Indian real estate companies. This renewed interest from overseas would help the realty companies to deliver decent returns in the times to come."The IPO looks attractive at the lower price band of Rs 500, but one has to stay invested for the longer term," said Amitabh Chakraborty, President (Equity), Religare Securities.At the offer price band of Rs 500-550, DLF’s PE works out to 43.9–48.2 times FY2007 EPS. According to Emkay PCG Research, even though this is a considerably high PE, all the other prominent real estate players are trading at higher price to earning multiples.It makes sense to invest in the issue from the long-term perspective as the long-term story of the country is intact. Even though there are concerns about valuations on whether the issue is over-priced or formation of bubble in the realty sector, the company is poised to benefit from the robustness in the Indian economy
http://www.ndtvprofit.com/homepage/storybusinessnew.asp?id=38801&template=&cache=6/12/2007%209:01:54%20AM
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