DLF Marine Drive Kochi – DLF New Projects Kochi – Marine Drive Apartments Kochi

DLF Marine Drive Kochi Project

DLF Developers soon launching New Affordable Residential Housing Project on a prime location in Marine Drive, Kochi. DLF Marine Drive is located on the waterfront and over looking the water channel leading in to kochi harbour. The landscape is beautiful with spacious Houses. DLF Marine Drive Project apartments are fully air conditioned and have Full with all modern amenities like children play area, round the clock security, gymnasium, swimming Pool, doctor on call facility and house keeping services. Get full details about DLF Marine DriveKochi Project log on to http://www.affinityconsultant.com

DLF Marine Drive Kochi Location
CBD, Marine Drive

DLF Marine Drive Kochi Common Amenities
Gymnasium, Swimming Pool, Children play area, Car Parking, 24×4 Power Back-up, Clubhouse, Swimming Pool, Sewerage Treatment Plant, Water Treatment Plant,

DLF Marine Drive Kochi Type Size & Price
2 and 3 Bedroom Apartments with area 1860 Sq. ft.

About DLF Developer
DLF is the largest real estate company in India. The group has over 224 million sq. ft. of existing development and 751 million sq. ft. of planned projects. DLF is committed to quality, trust and customer sensitivity, and deliver on promises with agility, financial prudence and in tune with the highest global standards. DLF Homes provides a wide range of products including condominiums, duplexes, row hoses and apartments of varying sizes, with a focus on the higher end of the market. The company has also entered into several strategic alliances with global industry leaders.

About Affinity Solutions (P) Ltd
Affinity Consultant is a Real Estate Consultant in India operating since last 10 years. Affinity Solutions have a team of dedicated professionals with more than 10 yrs of experience in real estate services handling the entire project in India. Affinity Solutions (P) Ltd. is a paramount name among Indian real estate consultants and service providers with all leading brands likes DLF, Unitech, Jaypee, Ansal, BPTP, Parsvnath, Mahagun, Omaxe, Emaar MGF, Eldeco, Indiabulls, Amrapali, Mantri, Lodha, Indu, Kolte Patil, Ramprastha, TDI, Uppals etc.

Source : http://www.bignews.biz/?id=818705&keys=DLFHousingKochiDLFApartme-MarineDrivekochiDLFkochip-DLFMarineDrivekochiDLFpro-DLFprojectsKochiDLFkochip#

Pride Group of Hotels eyes Tier II cities for expansion

With an aim to have a wider presence in the Indian market, Pride Group of Hotels is now eyeing Tier II cities to expand its business hotel brand, Pride Biznotel. For the same, the company is considering cities like Surat and Rajkot in Gujarat; Mangalore, Coimbatore, Madurai and Kochi in south India. The hotel chain will operate properties under this brand on a management and marketing contract. A management contract has been signed for two Biznotels in Maharashtra.

A 65-room property is also under development in Delhi, which is expected to be launched by March 2010. There are plans to launch city centre business hotels in Jaipur, Agra and the National Capital Region (NCR). The two hotels in Maharashtra will be located in Nashik and Aurangabad. The 91-room property in Aurangabad will be launched by March 2010 while the 100-room hotel in Nashik will be launched by end of 2010.

The chain is developing its first five-star property in Mumbai, which will be operational by 2011. The 250-room hotel will be developed on a two acre area. S P Jain, Chairman, Pride Group of Hotels, said, “We had to rework our hotel designs as the property received an increased FSI of 3.5.”

The company will speculate on the market situation and demand and will explore the possibility to add 100 rooms after a year of operations. It will invest around Rs 200 crore in the Mumbai property. Besides this, the company has two other properties of 100 rooms each, under development in Alibaug and Goa, which will be ready by 2011. The Alibaug hotel will incur an investment of Rs 45 crore whereas the Goa hotel will incur an investment of Rs 55 crore. Plans are also in the pipeline to develop a 250-room five-star hotel in Delhi under the Pride brand. The company is also considering offers in Hyderabad for a hotel under the five-star segment.

Pride Group of Hotels aims to set up 30 hotels with 3,000 operating rooms by 2015 and aims to invest Rs 800 crore, during the same period. It has raised around Rs 55 crore through private equity, which was invested in its newly launched 100-room hotel in Bengaluru. There are plans to raise Rs 45 crore through the same route. It will also receive Rs 100-crore term loan from Kotak Mahindra Bank and Citibank. Remaining funds will be generated through internal accruals. Plans for an initial public offering (IPO) have been scheduled for 2010. There are plans to raise Rs 200 crore through the IPO.

Source : http://www.hospitalitybizindia.com/detailNews.aspx?aid=6149&sid=1

Alibaug

Sobha near nod for Rs 5000 cr project

Bangalore: Real estate major Sobha Developers Ltd is expected to receive final approval for its Rs 5,000 crore Sobha Hi-tech City in Kochi from the Kerala government very soon.

A state cabinet committee to clear large projects with large investments led by chief minister V S Achutanandan was to clear the 450 acre proposal for the largest township project in the country at a meeting on Thursday. If the meeting does not happen on Thursday, it will on Monday, said sources.

The company signed a memorandum of understanding (MoU) with the Kerala government to set up the proposed township way back in 2007. The project would see 38 million sq ft development in Kochi comprising a 7 million sq ft knowledge park, commercial space, hospitality and leisure projects, entertainment and amusement facilities, a marina of international standards, and residential complexes.

J C Sharma, managing director of Sobha Developers, refused to comment. According to an analyst from a multinational consultancy, who did not wish to be named, Sobha has already acquired the land and expects to complete the project in seven to eight years.

“If the sanction comes through, the project would be the first of its kind in the country. The firm is expected to float special purpose vehicles for its large integrated township projects at Kochi,” the analyst said.

After a forgettable year, the company is seeing projects finding customers. Amit Bagaria, chairman of Asipac, a real estate consultancy, based in Bangalore said Sobha’s projects have already started doing well in terms of sales in the last 2-3 months. “The Kochi deal can only improve the cash flows,” he said.

Sobha is also in the process of restructuring its Rs 1,900 crore debt. It plans to raise about Rs 900 crore through preferential equity, special purpose vehicle-level equity and also by selling portions of its 3,000 acre landbank. Sobha is looking to bring down debt-equity ratio to 0.5 in this financial year from 0.85 currently.

The company hopes to raise Rs 1,200-1,400 crore by selling land. Sobha recently raised around Rs 530 crore by diluting close to 22.5% equity through a qualified institutional placement. The company had revenues of Rs 974.74 crore and net profit of Rs 109.67 crore for the financial year ended March 31, 2009.

Source:http://www.dnaindia.com/money/report_sobha-near-nod-for-rs-5000-cr-project_1288915

Housing for senior citizens

Amidst the clamour and claims of realtors that they are making a range of houses, from luxury to affordable, for their customers, a major question remains – whether there is anything in it for senior citizens? Not really, at least in this part of the country.

Perhaps, unthinkingly, realty firms have for long ignored the claims of senior citizens. Experts feel realtors must not ignore the special needs of senior citizens when they design their residential projects as these are people who have given their youth to build the society of today, and that they deserve a better deal enabling them to lead a peaceful and dignified life after retirement.

Sunil Jindal, CEO of realty firm SVP Builders, says they keep in mind interests of people of all age groups while designing their housing projects. For youngsters, he says, they provide facilities from gym to swimming pools inside the complex. And for senior citizens, they provide facilities like reading rooms, round-the-clock security, water softening plants, uninterrupted power supply, and maintenance services. However, they have never made homes exclusively designed to cater to them.

There are reports that some realty firms in cities like Chennai, Coimbatore and Kochi are designing and building flats exclusively for senior citizens. Since they are making flats for senior citizens, they are providing in-house medical facilities, available round the week, throughout the year. Most of these projects also have lounges for yoga and meditation. Domestic help, laundry service and maintenance services are also available in-house at all times.

Sanjay Singh, VP (marketing) at Century 21 India, says houses specially designed for senior citizens are not new down South and that many realty firms are making homes for them inside or on the outskirts of major cities there. According to him, Chennai already has some residential projects for senior citizens and more are on the cards. Moreover, professional services such as legal and financial consulting, alarm hooters and community halls are also provided in homes for them. These homes are also equipped with access ramps to common facilities, wider doorways, extra lighting, larger lifts, and centrally located common amenities.

Dr Nazma Rizvi of School of Planning and Architecture (SPA), strongly feels that if realty firms make specially designed homes for senior citizens in NCR, they would get a good response. “Senior citizens purchase such homes. If there is good demand for such flats in places like Chennai and Kochi, there is no reason such flats would not find buyers in this part of the country.”

According to one report, a builder in Chennai specially designed apartments for the elderly with larger ramps and lifts. Extra rest rooms are provided in the common areas, and normally, residents prefer to have a larger green space in these projects.

Pavan Dhir, a social worker active in East Delhi, says that currently our leaders and intellectuals only talk about the youth of India. While talking about them, they should not ignore the legitimate concerns and interests of senior citizens in the twilight years of their lives. According to him, senior citizens were 7.5% of the population in 1991 and the number is expected to go up to 10% by 2015.

Alimuddin Rafi Ahmad, CMD of realty firm ILD, admitted that the realty firms in this part of the country somehow failed to look after the interests of senior citizens. “They can make homes for this section of the society. They deserve something special from the society,” he says.

Dr Rizvi says realty firms must take care the interests of disabled a well as senior citizens while building their projects. “It is really sad that even though real estate sector has taken huge strides in India over the last couple of years, yet not many real estate firms make buildings accessible for the elderly populace. For instance, there are not many building where one can find lifts that can easily accommodate wheelchairs. Cabinets are fixed in bathrooms, bedrooms and kitchens at a height that can give jitters to disabled persons,” he concludes ruefully.

Source : http://mail.google.com/mail/?shva=1#inbox/1239767df20821a2

Puravankara, Mexico’s Homex talk JV

Bangalore: Realty major Puravankara Projects is in talks for an alliance with Homex, a Mexican company that specialises in affordable housing.

The idea is to give a boost to its affordable housing subsidiary Provident Housing.
Ashish Puravankara, director, Puravankara Projects, said, “We are holding discussions with Homex as they have build a large number of affordable homes. They like our business model and are very keen to tie up.” He did not divulge the nature of the alliance.

Homex is vertically integrated home development company focused on affordable-entry level and middle-income housing. It is also the largest home builder in Mexico, based on the number of homes sold, revenues and net income. It has so far delivered around 270,000 homes.

Its affordable entry-level housing ranges between 452 sq ft and 818 sq ft in size and its middle-income apartments are typically 818-1,851 sq ft.

Homex has operations in 32 cities located in 20 Mexican states as of December 2008.
Homex integrates aluminum moulds into its construction process. With this method, the shell of an entire home can be constructed from concrete poured into as many as 1,000 interconnected pieces of aluminium moulding for an affordable entry-level home.

Once the concrete hardens, the moulds are disassembled for use on another home. Each mould can be used as many as 2,000 times. The method also generates less waste, reducing materials cost. Most importantly, the mould system reduces the average time of construction.

Provident Housing has roped in SBI Capital and Housing and Urban Development Corp to raise funds for it affordable venture. The firm is currently at an advanced stage of talks with private equity investors for diluting stake on a project level and hopes to close the deal soon.

It has already launched two projects in Bangalore and Chennai and is in the process of launching its second project totalling 6 million sq ft in size in Bangalore with an investment of around Rs 900 crore.

The project is expected to have 6,000 apartments. It is currently waiting for sanction to kick start the project.

The real estate player will invest Rs 1,900 crore by 2010 on three affordable housing projects in Bangalore and Chennai. The three projects, slated to be ready by 2010-11, will house 15,000 units.

The one, two and three bedroom flats will be priced at Rs 10 lakh, Rs 15 lakh and Rs 20 lakh respectively spanning from 750 sq ft to 1,100 sq ft.

Provident Housing will also roll out the concept to other cities like Hyderabad, Coimbatore and Mysore in the Phase I. In Phase II it will set up properties in Delhi, Kolkata, Kochi, Jaipur, Pune and Nagpur.

Source : http://www.dnaindia.com/money/report_puravankara-mexico-s-homex-talk-jv_1284925

Big-ticket land buys on realty radar again

With a boost in sales and better cash flows from the June quarter, the appetite for land has improved

Bangalore/New Delhi: With the first signs surfacing of a revival in the realty sector, several developers have resumed buying large plots of land for building luxury and budget housing projects as well as to enter new markets.

India’s largest residential developer, Hiranandani Group, Lodha Group, Indiabulls Real Estate Ltd, Provident Housing Ltd and Anant Raj Industries Ltd have purchased tracts of land in cities such as Mumbai, Kochi and Pune at lower valuations following a boost in sales and improved cash flows from the June quarter.

The Mumbai-based Lodha Group, which last year had kept away from land deals worth more than Rs50 crore, came out of its sabbatical in July when it bid Rs710 crore for the 10.4-acre defunct Finlay property in Mumbai, auctioned by National Textile Corp. Ltd (NTC).

NTC now plans to put the Kohinoor Mill No.1 property in central Mumbai on the block for Rs1,100 crore. The Lodha Group may bid for this property as well, said a top executive.

“We bid for Finlay because we are planning new supply, more projects,” said Abhisheck Lodha, director, Lodha Group. “We may buy more land if the deal is good. We would build high-end homes in one part of it.”

In 2005, when land prices were beginning to peak, Lodha had bought Apollo mill, another NTC property in Mumbai, for Rs180 crore.

“The appetite for land transactions has improved. And if that continues, we can say the market has revived,” said Hari Pandey, deputy general manager (finance), Housing Development and Infrastructure Ltd, or HDIL.

The economic downturn had pushed developers such as DLF Ltd, Unitech Ltd—India’s top two realty firms—and Sobha Developers Ltd to sell land and non-core assets such as hotels.

This lull in buying land, which began sometime in mid-2008, followed a three-year realty boom that saw a spate of expensive transactions and continuous land assembling by developers.

Realty firms say they are now buying land for specific purposes. Land prices have not climbed down on par with property prices, but have dipped by 10-20% in certain markets such as Mumbai, Pune, Bangalore and Chennai.

Hiranandani Upscale, founded by Surendra Hiranandani, managing director of Hiranandani Group, intends to buy land in smaller cities such as Pune and Kochi to build townships.

“We are in talks with four private equity players—three foreign and one domestic—to raise about Rs800 crore to develop these projects,” said Hiranandani.

The company also plans to launch three projects in Bangalore, Chennai and Hyderabad, where it already owns land.

Indiabulls Real Estate, the country’s third largest developer by market value, is set to buy land in the metros and large cities after selling small parcels in the past eight months, primarily non-core assets such as 2-3% of a 150-acre plot in Sonepat, Haryana.

“We want to buy land in the heart of the city and are looking at Mumbai, Delhi and Chennai. We are also interested in buying through the government auction route and are looking for attractive deals,” said Gagan Banga, chief executive, Indiabulls Financial Services Ltd, and group spokesman.

Developers are in a relatively better position to buy land after restructuring debt and offloading part of their inventory, said Ashutosh Limaye, associate director (strategic consulting), Jones Lang LaSalle Meghraj, a property advisory.

“We will now see a lot of developers roping in a partner to buy land. Developers will also tie up with private equity funds at the land buying stage, which was not very common earlier,” Limaye said.

As it became more difficult to buy land due to a severe cash crunch, many developers resorted to joint venture projects with landowners to cut costs. But many projects didn’t take off because the landowners demanded more money, he added.

Another set of developers is scouting for cheaper land parcels far from city centres for low-cost and mid-segment housing projects.

After launching two low-cost residential projects in distant suburbs in Chennai and Bangalore, Provident Housing, a subsidiary of Bangalore-based Puravankara Projects Ltd, is negotiating with landowners in Kochi and Coimbatore. Typically, Provident’s apartments are priced at Rs15-20 lakh, excluding taxes.

“We have restrictions in cost because we need to build the homes in a lower price bracket,” said Jayakar Jerome, managing director of Provident Housing, at the launch of the Bangalore project this week.

For other builders, the worst is clearly behind them. Anant Raj Industries, which has a land bank of 990 acres, has set aside Rs400 crore for buying land in prime locations as prices have fallen, Anant Raj is looking at launching houses near New Delhi in the Rs15-18 lakh range, said Amit Sareen, executive director.

http://www.livemint.com/2009/08/02214942/Bigticket-land-buys-on-realty.html?h=B

Real estate survey shows silver lining for market

CHANDIGARH: Presently facing a downward trend, the real estate market is likely to recover by 2010 with increase in demand for residential segment driven by improving affordability, steady economic growth and greater liquidity. These are the findings of a survey carried out in 10 cities, including Chandigarh, by the Crisil Real Estate Research Group.

The report says, “Demand in the residential market is expected to turn positive in 2010 due to these factors, however, a decline in the currently over-priced capital values of all the three real estate segments – residential, commercial and retail would persist through 2009.” “The commercial and retail markets would continue to witness erosion in lease rentals through the next two years,” it states.

The report provided information and analysis of more than 400 acres of land across 88 micre markets in 10 cities – Ahmedabad, Bengaluru, Chandigarh, Chennai, Hyderabad, Kochi, Kolkata, Mumbai and Pune.

The report indicated that capital values for residential sector and lease rentals for commercial and retail properties have substantially corrected till March this year, due to slowdown in both the domestic and global economies. Cities such as Kochi, Chandigarh and Pune, which have greater investor presence as against end-users, witnessed a greater fall in capital values compared to other cities, the report revealed.

However, Crisil believes that demand for houses would improve in 2010, backed by lower home loan interest rates as well as better job security owing to higher growth in the economy.

Expressing confidence in the report, a leading real estate agent of the city, Sunil Kumar, said, “Apart from the low interest rates on housing, another important factor for the rising demand in 2010 would be the upcoming international airport in Chandigarh. The direct Dubai flight from Chandigarh would also add to arrival of many big business houses here.”

Kumar insisted that these factors would compell more and more tricity tenants to go for owning a property of their budget and choice. “The demand for residential properties would be more in the neighbouring areas like Mohali, Panchkula, Zirakpur, villages across the city and even far-off areas like Derabassi, Kharar and Kurali,” said Kumar.

Source : http://timesofindia.indiatimes.com/NEWS-City-Chandigarh-Real-estate-survey-shows-silver-lining-for-market/articleshow/4770363.cms

Luxe India to build portfolio of 12 properties in two years

Luxe India, a JV between US-based Luxe Worldwide Hotels and Indian hospitality company Tian Serrai Group, plans to develop its hospitality portfolio in the four-star boutique hotel segment. Under the arrangement, the Tian Serrai Group will develop, manage and market hotels under the Luxe brand in India. The company aims to develop a portfolio of 12 properties in the next two years. This also marks Luxe Hotel group’s foray into the Indian market.

Speaking with Hospitality Biz about the company’s India plans, Kishore Luthria, Director, Luxe India states, “We aim to design unique business properties for the business traveller; also, we want to develop the boutique hotel concept in this country. There are several five-star developments or low key properties coming up. However, there are few boutique properties under development. Our products are different in their look and offering.” The company has signed up two properties, which are presently under construction in India; an 80 room property in Pune and a 120 room hotel at Chaul Village in Raigad District. The properties are expected to start operations by end 2010. The company is also in negotiations with developers in Delhi, Mumbai, Bengaluru and Chennai. It is considering resort locations, like Kochi for development, as well. The average room inventory size Luxe India aims to develop will be under 150 rooms per property.

However, investments made into hospitality development do not form part of the joint venture. Currently, only Tian Serrai Group will focus on investments. It has earmarked about Rs 100 Crore as investment in the Indian hospitality sector, with about Rs five to 10 Crore per project. Luxe Hotels may consider investment into the Indian hospitality sector at a later stage. Luxe India will adopt the joint venture route providing the partners with capital and expertise required to manage the properties. The hotels that are taken over by the group will be branded under the Luxe Hotels brand. This will provide the property with access to the Luxe hotels’ central reservation system and marketing and promotional initiatives. The company is also open to co-branding the properties in India.

Source : http://www.hospitalitybizindia.com/detailNews.aspx?aid=5385&sid=1

Le Meridien plans to open 5 hotels in India

The French hospitality major, Le Meridien, plans to open five hotels in India in the next three to five years, a top company official said in Mumbai yesterday.
 
 ”We are looking at setting up five new properties of hotels and resorts in India adding around 1,000 rooms capacity over the next three to five years,” Starwood Asia Pacific Hotels regional vice president, Don Elliot, told reporters.

However, he has not revealed the names of the cities in which the company is interested in setting up its properties.
 
”We are negotiating with our partners and these properties will be set up in Tier I and Tier II cities,” Elliot said.
 
Le Meridien currently has eight hotels in India in Ahmedabad, Kochi, Jaipur, New Delhi, Pune, Mumbai, Bangalore and Chennai.
 
With close to 80 of its properties located in Europe, Africa, the Middle-East and the Asia-Pacific region, Le Meridien provides a strong international complement to Starwood’s primarily North American holdings.
 
Le Meridien recently opened new hotels in Bangkok, Chian Mai, Chiang Rai and Shimei Bay in China, and will open in Dallas and Philadelphia in the coming months.
 
It has also signed new hotel deals in Taipei, Xiamen, Chongqing Nan’an and Qingdao in China.
 
Le Meridien was started as an accommodation option for Air France customers to be used when they travelled to destinations across the world. The first Le Meridien property was setup in Paris in Etoile with 1,000 rooms.

In November 2005, the company, was acquired by Starwood Hotels & Resorts Worldwide Inc, one of the leading hotel and leisure companies in the world with more than 940 properties in approximately 97 countries and 145,000 employees.

Starwood ’s internationally renowned brands include St. Regis, The Luxury Collection, Westin, Le Méridien, Sheraton, Four Points by Sheraton, and the recently launched Aloft, and Element. Starwood Hotels also owns Starwood Vacation Ownership, Inc., one of the premier developers and operators of high quality vacation interval ownership resorts.

 
Source : http://www.google.com/url?sa=X&q=http://www.domain-b.com/industry/Hotels/20090523_hotels.html&ct=ga&cd=oHwoFOHo08Q&usg=AFQjCNHsb8y9_H9ryXaPz_alVqBeKu3WGQ

Kerala group to invest Rs.7.5 bn in new hotel ventures

THIRUVANANTHAPURAM: The Kochi-based Muthoot Pappachan group, that has interests in financial services, hospitality, infrastructure and wind power,  is investing Rs.750 crore (Rs.7.5 billion/$159 million) in seven hotel properties in Kerala and Tamil Nadu, as well as more than 100 service apartments here.

“In Kerala, we will undertake four premium hotel projects near Kovalam, Alapuzha, Bekal in Kasargode district and Kochi,” Group managing director John Muthoot said.

“The Kochi property, a five-star business hotel, will be ready in the next few months. An agreement has been signed with the Taj group for managing this property,” Muthoot said.

The new projects also include 122 service apartments near the international airport here – the state’s first-ever such property – which will be ready by 2011, he said.

Another three properties will come up in Tamil Nadu – near Chittar dam bordering Kerala, at Sriperumbudur near Chennai, and on Old Mahabalipuram Road, the state’s IT corridor.

“All three projects will be ready latest by 2011,” Muthoot said, adding that discussions were in “advance stages with international hospitality brands” for managing the properties.

The group owns The Muthoot Plaza, a premium five-star business hotel in this Kerala capital, apart from running an in-flight catering service, The Muthoot Skychef. It also owns a property that is operated by the Taj group as the Taj Green Cove Resort at Kovalam.

These properties too are being expanded: 60 rooms will be added to the Taj Green Cove Resort, and 57 new rooms to The Muthoot Plaza. The in-flight service will also begin operations at other airports in south India.

Source : http://economictimes.indiatimes.com/News/News-By-Industry/Services/Hotels–Restaurants/Kerala-group-to-invest-Rs75-bn-in-new-hotel-ventures/articleshow/4564450.cms

Alila Hotels & Resorts to open 12 hotels in India by 2015

Singapore-based Alila Hotels & Resorts plans to foray into the Indian market with its first property in Goa, Alila Diwa Goa by September 2009 and another property in Bengaluru by July 2010. These properties will be managed by Alila Hotels & Resorts. The company plans to open 12 hotels in India by 2015, focusing on getaway destinations. It is in discussion with developers to manage properties in Calicut and Kochi, Kerala.

Speaking exclusively with Hospitality Biz, Mark A Edleson, President, Alila Hotels and Resorts says, “We will focus on key destinations to open resorts and hotels that target business and leisure clients. India is a major target country and we see huge opportunity and potential in this market. Since, we are launching our hotel in a new country we need to understand the market, human resources and clientele. We are also looking for properties in Bengaluru and Jaipur.”

With the Alila Diwa Goa, property owner Parekh Group has announced its foray into India’s hospitality sector. Located in South Goa,

Source : http://www.hospitalitybizindia.com/detailNews.aspx?aid=4533&sid=1

Coimbatore Real Estate Shines Despite Global Crunch

The Manchester of South India, Coimbatore, is still brimming with a lot of positive energy as far as the real estate scenario is concerned. The city, with a population of 1.8 million people, has a few pan-India players in the real estate market but the 35-40 odd local developers are confident of staying in business despite the economic slowdown. Though many are in the wait-and-watch mode, buyers are looking at this growing city as the place for long-term investment, especially on the residential front. Industry experts say majority of the buyers are from nearby cities like Chennai and Bangalore and non-resident Coimbatoreans and NRIs, who want to settle here post retirement.

The latest Jones Lang LaSalle India30 Real Estate Opportunities in Tier III cities identifies Coimbatore as one of the top 10 growing consumer markets. “Though Coimbatore stands low on current office market activity, the growing engineering and IT potential is sure to throw up opportunities for the real estate market in the next few years,” said experts. “The prices are marginally down by 5-10% in Coimbatore but the situation will not worsen any further. Land prices are going up and construction costs have increased. We don’t see any downslide on price aspect,” said Omkar Mohan Sankar, a real estate developer in the city.

According to him, the city has perfect attributes such as excellent locale, ideally set in the footsteps of Nilgiris, pleasant climate and sweet Siruvani water. Further, it is an education and healthcare hub and the two industries are recession proof. Though textile industry is going through tough times, work options are increasing as nearby districts such as Tirupur, Erode and Karur are fast catching the attention of world markets with their fashion products.

Also, with the entry of big players such as L&T and Suzlon in the engineering industry, more investment is expected in real estate market. “Once the companies look at increasing their work force, the requirement for housing would increase and the residential value in the city will go up,” said market sources. State-owned Electronics Corporation of India’s Tidel Park in IT-SEZ is expected to be ready by January and is likely to provide employment to nearly 12,000 people, which means more residential space will be needed. The Wipro development centre inside the IT-SEZ is also nearing completion and more IT companies like TCS and HCL have plans here.

The city already has the presence of global engineering and IT giants like Robert Bosch and Cognizant and big IT & ITES players like Perot Systems and Spheris. “The city is looking at employing 20,000 more and even if 20% opt for new homes, there would be a demand for 4,000-5000 houses soon,” said Mr Rajesh B Lund, VP, Confederation of Real Estate Developer’s Associations of India. Today the focus of realty players has moved towards Saravanampatti and Kalapatti, apart from the traditional residential hubs like Race Course, Bharati Park and RS Puram. “The huge activity and development of IT companies in the private IT space in Saravanampatti and also its easy connectivity to airport has attracted developers to construct houses there,” Mr Omkar said.

According to the LaSalle report, the city stands sixth in the connectivity index and fourth among the higher education institutes in top 30 tier-III cities and it gives lot of credibility and potential for the growth of real estate here. “The city is centrally located and close to Chennai, Bangalore and Kochi by road and also is well-connected to all major metros. Therefore, the prospects of people preferring Coimbatore as a place to invest in real estate in Tamil Nadu rather than already saturated Chennai city is very high,” added Mr Omkar.

Source : http://www.indianrealtynews.com/real-estate-india/coimbatore-real-estate-shines-despite-global-crunch.html

Puravankara budget housing project gathers steam

Puravankara Projects Ltd, a Bangalore-based real estate developer, is set to acquire 200 acres of land in Bangalore, Mysore, Chennai and Kochi at a cost of Rs 2-3 crore per acre for its affordable housing project. The company has indicated that it has signed a memorandum of understanding for the land bank and has issued some advances for the same.

Ravi Ramu, director, Puravankara Projects confirmed that they are in negotiations with land owners and some progress has been made to acquire them. Puravankara Projects is executing this affordable housing project through a wholly-owned subsidiary — Provident Housing and Infrastructure Limited — and has envisaged an investment of Rs 8,000 crore over a period of five years. Company officials maintained that they are not going slow on this project.

The company already has 70 acres of land and it is looking at a total land bank of 550 acres in all for this project which will see the rollout of close to 65,000 homes sized between 750-1,000 sq feet. The houses will be priced between Rs 12 lakh and Rs 20 lakh.

Puravankara is set to roll out its initial two projects within the next three months which will see the construction of 6,000 houses in Bangalore and Chennai. A further 3,500 houses are expected to be launched during the latter half of 2009. The company, which for the last quarter reported a 70 per cent drop in net profit, has said that its net debt of Rs 757 crore is manageable and the company is leveraged 0.56 times.

The company is looking at raising private equity investment for the project, while the rest of the investment will be raised through internal accruals, debt and sales advances. Ravi Ramu confirmed that they have a ready credit line but declined to spell out the specifics.

Puravankara in a recent statement said they have repaid all loan installments as per the requirements of individual loan agreements and there has not been any loan repayment defaults.

Source : http://www.business-standard.com/india/news/puravankara-budget-housing-project-gathers-steam/00/06/349435/

Geojit launches property division

KOCHI: Aiming to tap the vast potential in the real estate sector, Geojit Financial Services, a leading retail financial services company, forayed into this segment by launching its Property Services Division.

The new division will offer investors and builders a single transparent platform to buy/sell office and commercial spaces and residential apartments and flats and would commence operations from Kochi before spreading to other major locations in the state , Geojit Financial services Managing Director Mr C George told reporters here.

In the second phase, the services would be launched in other South Indian states, followed by the rest of India, he said.

To start with, the services would be available to its 4.50 lakh customers throughout the country through 500 branches, he said.

A market survey conducted by Geojit showed a huge gap in this front and the division was started to fill this gap.

Mr Joseph Niven, Vice President and Head of the new division, said the real estate sector is expected to grow at 30 per cent annually for a decade.

In Kochi, with several major projects coming up, there is likely to be a huge demand.

The division will facilitate home loans from banks and NBFCs and offer value added services such as access to architects, interior designers and property related service providers. – PTI

Source : http://www.thehindubusinessline.com/blnus/02181591.htm

Property investment shows get India buzzing

Leading homes developers from a growing region of India have shown off a variety of new development projects at a Bangalore property show.

Organisers Makaan.com have revealed the event attracted more than 3,600 visitors after summing up the property investment gathering at the NIMHANS convention centre in the city.

Makaan is now also evaluating another show in Kochi which finished on Sunday, and is planning several similar exhibitions throughout the year.

The firm said last week’s Bangalore show “exceeded all expectations” with 23 regional developers showing off homes from the super-luxury to the budget.

Bangalore is one of the country’s developing property investment hot spots and is one of India’s top 10 cities in terms of economic progress.

Aditya Verma, business head of Makaan.com said: “Shows like these not only allow property seekers to explore various options for their dream homes, but also provides them with a platform where they can directly interact and negotiate with leading developers from the city.”

Homes on show at Bangalore included budget flats, apartments and villas for sale, as part of what will be a total of 10 similar property investment events hosted by Makaan.com.

Attendance for the Kochi show has not yet been released but thousands were expected to view homes available in the city, which is in the Kerala region.

Bangalore’s homes boom includes several high-profile apartment schemes sold off plan by Sri Sai Ram Projects and a township scheme by VVR Housing.

Makaan is looking to capitalise on a property investment market which has recently been more focused on large-scale affordable homes projects.

Source : http://www.offplanpropertyexchange.com/news/2009/02/property-investment-shows-india-buzzing/764

Tier 3 Offers Good Real Estate Opportunities

Despite the global economic downturn eating into India’s real estate markets, Jones Lang LaSalle said the country’s third tier markets would provide attractive future returns. The real estate services firm added that Ahmedabad, Chandigarh, Kochi, Jaipur and Nagpur were among the most attractive. The investment case for India’s third tier cities is still strong despite the financial turmoil being felt in the country, according to property services firm Jones Lang LaSalle. India’s economy has suffered amid the global deleveraging with general repricing across real estate markets and predictions the country’s gross domestic product will fall from an average rate 8.9 percent to 6.2 percent for 2008/2009.

However Jones Lang LaSalle said in their “India30 Real Estate Opportunities in Tier III Cities” report, that the country’s tier three cities are well placed to weather the storm. Highlighting 30 cities, the firm said these locations would “set the benchmark by which other [tier three] cities will be measured.” Assessing the investment potential of the cities by “size, market reach and connectivity”, Jones Lang LaSalle said the most attractive investments would be found in Ahmedabad. Chandigarh, Kochi, Jaipur and Nagpur. Anuj Puri, chairman and country head of Jones Lang LaSalle Meghraj said these cities “offer the strongest real estate potential combined with the lowest market risk.”

According to the report: “The [30 cities highlighted by the report] still account for a relatively small proportion of real estate activity (21 percent of modern offices and 34 percent of shopping malls), but with 41 percent of the country’s wealth, the potential of these tertiary markets is clearly evident” “Domestic players continue to expand rapidly into tier three cities, and whilst foreign players are currently adopting a cautious approach in today’s uncertain global economic climate, over the longer term we anticipate the India30 will offer new opportunities for both domestic and foreign real estate investors, developers and occupiers,” he added in a statement.

Source : http://www.indianrealtynews.com/real-estate-india/tier-3-offers-good-real-estate-opportunities.html

JLLM Releases ‘India30 – Real Estate Opportunities in Tier III Cities’

With the release of ‘India30 – Real Estate Opportunities in Tier III Cities’, Jones Lang LaSalle Meghraj decisively answers the recurring question in investor circles today – Is the Tier III city story over, or is there comeback sequel?

The answer is a resounding ‘Yes!’ This latest report from Jones Lang LaSalle’s World Winning Cities Research sets out to provide fresh insights into the long-term real estate opportunities and risks across India’s Tier III cities.

What makes these cities tick, and what will keep them ticking when others are facing the prospect of a protracted period of stagnation?

“This is not a simple question to answer, but we have attempted to do so in this report,” states Anuj Puri, Chairman & Country Head, Jones Lang LaSalle Meghraj. “In any given city, the factors that influence real estate growth are diverse and complex. To arrive at a uniform and non-ambiguous model of ‘real’ time potential, we arrived at three control points for this study – infrastructure, human capital and governance. These factors are best suited to reflect growth amongst any city.”

‘India30 – Real Estate Opportunities in Tier III Cities’ showcases 30 cities – the India30 – which Jones Lang LaSalle Meghraj identifies as the focus of new real estate activity outside of India’s major metros over the next decade. The India30 will set the benchmark by which other Tier III cities will be measured.

Included in the report is a unique Real Estate Opportunity Map, which provides a high-level summary of the research and analysis of macro-economic parameters, real estate fundamentals, future growth drivers and risk profiles across the India30.

“We have short-listed 10 Tier III cities which offer the strongest real estate potential combined with lowest market risk”, states Mr. Puri. “Five cities stand out – Ahmedabad, Chandigarh, Kochi, Jaipur and Nagpur. This group already have rapidly growing real estate markets due to their city size, market reach and connectivity.” A second group of mainly southern Indian cities – Coimbatore, Mangalore, Thiruvananthapuram, Visakhapatnam and Goa – also score well and have growing consumer markets.

With ‘India30 – Real Estate Opportunities in Tier III Cities’, Jones Lang LaSalle makes a strong case for these cities which, led by proactive visionary governments which invest in infrastructure and education, will be best positioned to succeed in the immediate and long-term future.

Source : http://propertybytes.indiaproperty.com/?p=3247

Zoom Developers mulls Rs 1,000 crore investment in hospitality projects

Real estate developer, Zoom Developers, has chalked out a Rs 1,000 crore investment plan to develop hotels in various cities in India. The realty major plans to develop 35 hotels across India by 2011.

The 35 hotel projects will be spread across Jaipur, Jalandhar, Itanagar, Ranikhet, Ooty, Kochi, Katra, Amristar, Bhowalil, Bhatinda, Indore, Danta, Alwar, Patiala and Pushkar. Construction has already begun in a few locations that include Itanagar, Ranikhet and Patiala. These properties are expected to be complete before the Commonwealth Games in 2010.

Source : http://www.travelbizmonitor.com/zoom-developers-mulls-rs-1000-crore-investment-in-hospitality-projects-4642

DLF, SRK To Invest Rs. 90 bn In Kerala

SRK Group is planning to invest Rs 50 billion in Kerala in the next five years for building apartments and villas in around 16 projects in places like Kochi, Thirssur and Thiruvananttapuram. The group, currently has 20 projects on hand, including a township called Skywing near the SmartCity promoted by Dubai Internet City.

The group is also looking at markets like New Delhi, Gurgaon, Ahmedabad, Pune and Chennai. It plans to develop only commercial projects in Delhi while elsewhere it will develop both residential and commercial properties. India’s largest builder, DLF Ltd, has also announced plans to invest Rs 40 billion over a period of five years in various project in Iterate.

The company is also looking at commercial projects like hotels, shopping malls and office complexes, according to M.G. Girish, Vice-President of DLF Homes. A mega residential project, New Town Heights, coming up on the Seaport-Airport Road at Kakkanad in the suburbs of Kochi, is receiving good response. The rates start from Rs 2,600 a sq ft.

Source : http://propertybytes.indiaproperty.com/?p=3168

Confident group carries on with hotel projects

Confident group is a conglomerate with interest in infrastructure , hospitality, airlines and Entertainment. Confident Group is a zero debt group. 
The group has large real estate projects in Bangalore, Kochi, Trivandrum and Dubai. The group is the largest selling brand amongst developers with Projects in Bangalore, Kochi, Trivandrum and Dubai.

It is diversifying into hospitality industry. The total targeted investment in this segment is Rs 1,200 crore. The group is putting across 10 hotels and resorts in Bangalore. These hotels and resorts are in the three star to five star category. These 10 hotels and resorts are at different stages of execution. The land acquisition for all the projects have been completed and many of the hotels and resorts are different stages of construction and completion.

Confident Cascade is already operational and one of the favorite party spot for multinational companies for stay and conferences. This resort has already completed over 2200 corporate outing and conferences. This resort is located on Bannerghatta main road and is very close to Bannerghatta National Park. Iris, the four star hotel is next to be launched recently . Iris, located in the heart of Bangalore city on Brigade Road has 60 rooms with three restaurants and all other facilities.

To be launched by August end, is Propus at Langford town, again in the heart of the city. This hotel has 50 suites and rooms with three restaurants and all other facilities.

Confident Aquraii, an upmarket spa and resort on Old Madras Road, Bangalore. This Spa and Resort would provide South-East Asian and Kerala Ayurvedic treatments apart from high end stay. This resort has tied-up with Derma Health Care of Dubai for anti-aging treatment and stay. This resort is five-star category with 15 presidential cottages, 21 luxury cottages and 51 suites. This resort is slated to open by this year end. The current status is civil construction is completed and the interior works and in progress.

Confident is also putting up its most prestigious project Confident Champion Reef, a 18-hole golf course. Planned by world famed Ron Fream. This project consists of 600 high end villas and exclusively designed by Edward, SAA Architects, Singapore. This project is spread over 201 Acres and just 30 minutes drive from the new International Airport. This golf course would also consists of high end resort and hotel facility.

Confident Group would be running all the properties under its own brand and management team. The brand has over seven years experience in running hotels and resorts. Confident Group is the only hospitality brand to own its own airlines. Confident Group has recently launched its own chartered airline called Confident Airlines. The company already owns a P68 plane and is in the process of acquiring another five small planes and helicopters. The basic objective of this division is to cater to chartered and fractional ownership of planes. This division would also support the hotel and resorts to ferry high end customers . The long term objective of Confident Group includes health-tourism whereby the high end customers from abroad are ferried in its own chartered plane and sent for treatment to leading hospitals. Pre and post care is provided in Confident’s own hotels and resorts.

The first four hotels and resorts would be operational in the next six months and the chain of 10 hotels and resorts would be fully operational in the next 30 months.

Until then, the rest of the hospitality industry has to rest without the Confident group’s competition.

Source : http://economictimes.indiatimes.com/Features/Financial_Times/Confident_group_carries_on_with_hotel_projects/articleshow/3902531.cms

DLF to invest Rs 15,000 cr on affordable housing

Buoyed by robust sales in mid-income housing, real estate giant DLF on Monday said it will invest Rs 15,000 crore over the next three years to develop various residential projects across the country in Rs 15-40 lakh range.

DLF, the country’s biggest real estate developer, had last year announced its plan to enter into mid-income housing segment, realising the huge untapped demand in this category.

“We will be investing Rs 5,000 crore a year over the next three years on mid-income housing projects,” DLF Home Developers Vice President A Harikesh told media.

“Mid-income homes will be our focus area and will witness significant growth in the coming quarters,” he added.

DLF’s investment plans for affordable housing coincides with announcement by public sector banks to boost the segment by cutting home-loan interest rates, putting caps of 9.25 per cent for Rs 5-20 lakh and 8.5 per cent for loans of up to Rs five lakh.

Harikesh said internal accruals, advances against sales and capital raised through private equity would take care of the planned investment. DLF had raised Rs 1,675 crore as private equity in eight projects in November 2007.

DLF Home Developers, the wholly-owned subsidiary of DLF, would construct about 40,000 housing units in the mid-income category, sizes of which would vary between 1,000 sq ft and 1,800 sq ft, he added.

The company has witnessed tremendous response for its mid-income housing projects and sold over 7,000 flats so far this year, despite slowdown in the housing demand for the last six months on account of high interest rate and capital value.

DLF has launched mid-income housing projects in Bangalore, Gurgaon, Hyderabad, Indore, Kochi, Kolkata and Pune.

Source : http://propertybytes.indiaproperty.com/?p=3092

Buyers hesitant to take the plunge

A weak sentiment and constant negative commentary have aggravated the problems of affordability and high mortgage rates in real estate, according to Motilal Oswal Financial Services Ltd.

A report by the company, based on an interaction with international property consultants, states that buyers are shying away from new projects and those under construction if delivery times are more than a year away. They feel that prices could drop further in the medium term and they are not sure if the developers would have the ability to stick to schedules. So presales, an important source of funds for developers to meet construction cost, is under threat.

List prices are no longer relevant as developers with projects in the pipeline and those that have been announced offer discounts of 30-50 per cent on listed price. They do not lower prices officially because they do not believe this would attract more buyers but would only aggravate the situation by making people wait for a further cut. A few leading developers such as Orbit Corporation and Oberoi Construction have dropped list prices, according to the report.

Property consultants felt that the outlook for real estate companies has worsened in the last few months along with their financial condition and were hesitant to give estimates of the possible time for recovery. But it is possible that the residential businesses could stabilise by March 2009 with some deals happening then.

The residential real estate prices are likely to realign with the present market situation by then and stimulate demand from end-users.

The property consultants expect demand to start improving first in Mumbai, Bangalore, Hyderabad, Delhi as the pent-up demand is higher in these cities. This will be followed by strong Tier II and Tier III cities such as Ahmedabad. However, any significant improvement in demand is not expected in the next few quarters.

Financial year 2009 is likely to be one of consolidation with industry leaders differentiated from peers. Developers with staying power will utilise this consolidation phase to emerge stronger and position themselves in an advantageous manner to capitalise on the growth phase post-consolidation. Focus should be on companies with high visibility on monetisation of assets over the next 3-5 years; low leverage and robust financials; and strong execution track record.

Tier II/III cities hold potential

Pension funds can exploit the relatively stable realty markets in India to park their funds, according to Jones Lang LaSalle Meghraj.

A report by the international property consultants says that with $20 trillion in assets, pension funds worldwide are the largest category of any investments. These can look at realty investments in India where the market is less volatile and property consistently priced making it an ideal investment option for prudent investors.

India’s Tier II and III cities rank higher than those of China’s, indicating less diversity in transparency within India. This is a reassuring factor for investors seeking to enter India’s secondary and tertiary cities.

The levels of transparency in Tier II cities are only marginally below Tier I cities. In the Asia-Pacific region investors may find greater reassurance in investing in smaller cities in India than in other countries.

According to the international property consultant, of the total domestic and foreign investment of $6 billion announced in India in the first half of 2008, over 63 per cent is in Tier I cities and 33 per cent in Tier II cities and the balance in smaller location. In 2007, Tier I cities accounted for over 95 per cent of the total investments.

In Tier III cities there have been investments in IT parks and SEZs in Nagpur, Kochi and Jaipur; retail in Ahmedabad and Chandigarh; hotels in Goa and Jaipur; and mixed development in Indore and Visakhapatnam. — Our Bureau

Source : http://www.thehindubusinessline.com/iw/2008/11/30/stories/2008113050691700.htm

PE groups step in to fill gaps as investors desert firms

Bangalore / Mumbai: In October 2007, Bangalore-based developer Nitesh Estates tied up with Citigroup Property Investors, the real estate private equity (PE) arm of Citigroup Inc., to set up shopping malls worth around $300 million (about Rs1,180 crore then) in Thiruvananthapuram, Chennai, Kochi and Bangalore over the next three-four years.

Now, Nitesh Estates is looking for another partner or investor for the shopping mall venture, a senior company official said on Monday on condition of anonymity, because the decision to tie up with another entity hasn’t yet been made. Citi received a bailout on Sunday under which the US government agreed to protect the largest US bank from hundreds of billions of dollars in toxic assets and infused $20 billion of fresh capital.
“Citigroup was on a mandate that it will get us an investor or will put in its own money, either of which hasn’t happened. Things are taking their own time, but we may bring in a different investor,” said the executive.
Umpteen opportunities such as this, where the existing investor is not able to honour its commitment because of the global financial market turmoil, seem to be cropping up for PE investors that are on a firmer footing.
More chances seem to be arising for PE companies in firms where an existing fund is seeking partners It’s not just Citigroup, the US bank that fell into trouble in its home market because of overexposure to mortgage-backed securities, but also others such as Lehman Brothers Holdings Inc., which filed for bankruptcy in September, and whose Asia-Pacific operations have now been taken over by Japanese firm Nomura Holdings Inc.

Mint had reported on 4 November that a fund sponsored by Lehman Brothers, which had invested $200 million (Rs1,000 crore today) in DLF Assets Ltd, a firm owned by DLF Ltd, India’s largest realtor by market value, had divested its stake to a unit of its co-investor, London-based Symphony Capital Partners Ltd.

In India, PE groups are not used to buying stakes from other PE firms in what are called secondary transactions. According to Venture Intelligence, a firm that tracks the PE and venture capital industry, there have been seven such transactions this year, and eight all of last year.
But that’s probably about to change, with the redrawing of the investment banking industry in the US amid the global financial tumult. Other investors says they these entities that are trying to weather the crisis are not selling from the third-party funds they manage, but are putting some investments done with their own money, especially in listed entities, up for sale.
“We are seeing a lot of companies from which some existing institutional investors want to exit,” said Nainesh Jaisingh, managing director of Standard Chartered Private Equity Advisory (India) Private Ltd, the PE arm of the UK-headquartered bank. He declined to name the entities in exit mode.
Enquiries by Mint show that investment banking entities with PE arms, such as Merrill Lynch and Co. and Goldman Sachs Group Inc. are also in an exit mode. Both Merrill and Goldman declined comment.

Data from Venture Intelligence estimates that Goldman Sachs has done a total of 16 investments worth $900 million in India on the PE front. This excludes real estate. The companies in which it has invested include Bharti Infratel Ltd, National Stock Exchange of India Ltd, Mahindra & Mahindra Ltd and Sigma Electric Manufacturing Corp.

Merrill Lynch, meanwhile has stakes in 6 companies, estimated to be valued at $200 million at the time of the transaction. Lehman Brothers has 11 portfolio companies in its PE arm, the combined value of the stakes being $300 million at the time of investment, according to Venture Intelligence estimates.

Some of the investments were done with their proprietary funds and some with funds raised from third-party investors. Apart from buying stakes from exiting investors, more opportunities seem to be arising for PE firms in companies where an existing fund is seeking partners because it isn’t able to provide additional capital.
“We are seeing a large volume of very high-quality companies where their existing investors are looking at additional funds to complete their fund-raising needs,” said Harsha Raghavan, managing director, Candover Advisors India Pvt Ltd, the Indian arm of European PE group Canodver.

Source : livemint.com

Piramal fund buys Rs 300 cr stake in realty co Neptune

MUMBAI: Ajay Piramal-promoted real estate fund Indiareit has acquired about 15% stake in Mumbai-based developer Neptune group for around Rs 300  crore. The deal assumes significance as the fund has chosen to invest in the company, rather than the usual practice of investing in individual projects.

Neptune group chairman Nayan Bheda confirmed the deal, but refused to share the details, including the amount involved. “We have expanded our operations across India and the money will be invested in upcoming projects,” he added.

Neptune’s presence in multiple areas of realty business and its association with companies of global repute — Foster+Partners are project architects for Neptune’s corporate park at Kurla — might have prompted Indiareit to strike an equity deal with it, said sources close to the deal.

“It is heartening to note that even in troubled times, investors are reposing faith in the realty industry by making enterprise-level equity investments,” said Shashi Kumar, CEO of the real estate advisory division of Birla Sun Life Asset Management. “This is also an indication of the potential of the domestic property market.”

In the past few years, Neptune has grown into a pan-India player with projects in Pune, Hyderabad, Chennai, Vishakhapatnam, Kochi and Nagpur, among others.

“It is for the first time that we are investing in the entity-level. The deal will help us get a pan-India presence as Neptune is expanding operations across India,“ said Indiareit Fund Advisors CEO Ramesh Jogani. Set up in March 2006, Indiareit initially came out with a $200-million offshore fund, wherein private equity major 3i had invested $40 million.

Indiareit is looking at investments in excess of Rs 200 crore in properties in Mumbai and Hyderabad. It had invested Rs 225 crore in Bangalore-based Skyline Constructions & Housing last year.

Neptune’s projects in an around Mumbai include a business park in Kurla, a one million sq ft IT park in Thane and a 5 million sq ft residential complex for low and middle-income groups in Kalyan. The company is also developing a residential complex admeasuring one-and-a-half million sq ft in Hyderabad, a 4 million sq ft residential project in Kochi and another 3 million sq ft residential project in Chennai

Source : Economictimes.com

DLF to invest Rs 4,000 cr in Kerala in five years

Kochi: The real estate developer DLF Ltd has announced plans to invest Rs 4,000 crore over a period of five years in various parts of Kerala.

The company will be looking at setting up a number of commercial projects including hotels, shopping malls and office complexes and many residential projects over the next five years, Lt. Gen. M.G. Girish (Retd), Vice-President (Kerala), DLF Homes, said at a press meet convened here to announce the launch of a mega residential project – New Town Heights – at Kakkanad in the suburbs of Kochi.

The investments involved in the new projects will be the largest by any single developer in the State and DLF will be primarily focusing on the markets of Kochi, Kozhikode and Thiruvananthapuram for creating new projects. All its residential projects will be mega projects with a minimum of 1,500 apartments setting new benchmarks for the industry in the State, he added.

The company has also proposed to set up a heritage hotel project in Fort Kochi in the land owned by the erstwhile Aspinwall Ltd. Aspinwall company will be a partner in the hotel project, which is expected to be completed in two years. DLF will be making an investment of Rs 150 crore for the project, he said.

On the new residential project at Kakkanad, Mr Girish said that it would be a self sufficient residential area spread across 25 acres and will offer all the amenities besides certain unique features.

The project involving a cumulative investment of Rs 1,000 crore will have in all 1,800 apartments and will be priced in the range of Rs 30-50 lakh.

The project will be delivered for possession by end-2011, he said, adding that the construction activity will start in November. He pointed out that Kerala in general and Kochi in particular has certain unique advantages which make it attractive both from a commercial and resi­dential perspective.

“We remain long-term committed to the market and will be looking at a slew of projects, both commercial and residential, in the State over the next few years,” he said.

DLF has an aggregate esti­mated developable area of 615 million sq ft under construc­tion. Of this, the company es­timates that approximately 254 million sq ft is in super metros (Delhi Metropolitan Region and Mumbai), while 206 million sq ft is in metros (Chennai, Bangalore and Kolkatta). All the lands are under master plans of various cities.

Source: The Hindu Business Line

Phoenix Group expands India footprint

BANGALORE: Phoenix Group, a conglomerate based out of Dubai, on Wednesday entered the luxury hotel segment with the launch of its Zuri Hotels and Resorts.

The company, which is betting big on the Indian hospitality industry, plans to set up a chain of hotels across the country, including star rated properties in Nagpur, Ahmedabad, Kochi, Mysore, Chenai and Visakhapatnam.

Abhishek Kamani, director, Phoenix Group, said the company is looking for suitable properties. While he did not give out investment figures, Karmani indicated the foray would kick off with South India. It plans a tariff in the range of Rs 9,000-10,000 per day for the new hotels.

“We have already identified two properties in Bangalore with a total investment outlay of Rs 300 core. The properties will come up in White Field and near Bangalore International Airport,” he said.

According to Saurabh Gupta, associate director at hospitality and leisure consultant HVS, “Whitefield will come up as a separate micro market. The properties coming up in Whitefield will be able to meet demand of the IT industry as it is located away from the city.”

The company, currently, operates the resorts and spas under the Radison brand in Kumarakom in Kerala and Goa apart from the Country Inns & Suits in Goa.

Phoenix, which earlier had a franchise agreement with Carlson for three of its existing properties, has signed sales and marketing agreements with US-based Preferred Hotel Group for its recently launched five-star business hotel in Bangalore.

The Preferred Hotel provides reservation, sales and marketing services to more than 600 independent hotels and resorts in over 65 countries. Phoenix also plans to re-brand its two properties in the UK and Kenya under the name Zuri or Phoenix Global.

The Group is also working to merge all the group companies into one entity.
Priti Chand, director, PR & communication, Phoenix Group, said, “We have already started work on it and hope to finish the merger by mid-next year either under Zuri or Phoenix brand.”

The company plans to go public next year to raise fund for to expand it’s footprint across India. “We will either raise money through PE or IPO,” he added.

Source : Dnaindia.com

Metro: Whose line is it anyway?

New Delhi, October 3: After Delhi, Mumbai and Hyderabad, six more cities—Chennai, Kochi, Bangalore, Ahmedabad, Chandigarh and Pune—are expected to launch metro rail systems in the near future. But the stir created by Delhi Metro Rail Corporation (DMRC) chief Ellatuvalapil Sreedharan’s missive to the Centre over perceived risks stemming from the Hyderabad project being awarded to a private developer could throw a spanner in the works.

With an estimated $13.5 billion required to construct the five metro rail systems in Delhi, Bangalore, Kolkata, Hyderabad and Mumbai, the question of how these projects should be financed has become a bone of contention between the urban development ministry (the nodal department for metro projects) and the Planning Commission (which advises the Government on infrastructure projects).

The differences centre on whether or not private players roped in for metro projects should be allowed to develop real estate along metro lines to help pay for the overall project and keep passenger costs low. Though all concerned, including the finance ministry, agree that the ultimate decision lies in the hands of the respective state governments, the urban development ministry seems to favour a Centre-state partnership as that would ensure better service quality. It also feels that lack of resources should not be the only consideration.

While Delhi, Bangalore and Kolkata are being taken up on a joint-ownership pattern with the Centre and concerned state as project promoters, the metro projects in Mumbai and Hyderabad have been taken up on a PPP basis. Chennai is also hoping to go the DMRC way. But the Planning Commission is pushing to award the project to a private bidder and is making a similar case for Kochi.

DLF New Town Heights Kochi

DLF New Town Heights Kochi to come up in Kakkanad

The bookings have just started and the property is available at attractive prelaunch offer price of Rs 2350 per sqft. This attractive price quoted is valid only for 3 days, it till Sunday, 30th September.

The most happening location
The project is located ideally at the city’s most promising suburb, Kakkanad, a short distance from Kochi city and the district headquarters of Ernakulum. It houses important government buildings, Info Park and the Cochin SEZ. Several important projects like the Smart City and Fashion City are coming up in Kakkanad. Veega Land, one the largest water theme parks in the state, is close by.

A lifestyle to envy
The proposed project features 2 BHK to 3 BHK apartments ranging between 1100 and 1800 sq ft with premium amenities. Each tower will have 4 apartments on every floor. As may be expected from a DLF project, the development comprises a 70,000 sq ft clubhouse with gym, ayurvedic spa, crèche, banquet, guest suites and a host of other indoor amenities. Sports facilities include swimming pool, tennis, badminton and squash courts. The residents shall also enjoy the privilege of a 90,000 sq ft convenience-shopping plaza, healthcare units, a play school for kids. Nearly 75% of the total land will be left for landscaping.

Pre-launch price advantage!
The project has just been announced for private clients and not yet officially launched. For the next few days, apartments are available at the pre launch price of Rs 2350/- per sq ft. The price will not only appreciate in value over time, but also in the short term.

DLF- Building India one estate at a time
With over six decades of experience, 231 million sq. feet of development and 751 million sq. feet under development across 32 cities, DLF today has earned the trust of thousands of investors, businessmen and over 20,000 families. So, you can rest assured that when you buy a DLF home, you’re buying into a heritage of trust.

Kochi To Become A Hi-Tech City Soon

With the coming of a Rs 5,000-crore hi-tech city project, Kochi will soon attain a global city status. Bangalore-based Sobha Developers have signed an MoU with the state government for developing this hi-tech city. Sobha Hi-Tech City will be an integrated city with focus on research and development, knowledge dissemination, information technology and pure and applied sciences. The city is located close to the National Highway 47 bypass near Maradu in Kochi. It will have seven million sq. ft. of knowledge park, commercial space to provide business-friendly ambience, hospitality and leisure projects, entertainment and amusement facilities, a marina and residential complexes. The project will be completed in eight years and would generate 75,000 direct jobs.

DLF to Invest Rs.1000 Crores in Multiplex Business

Real estate giant DLF is likely to invest about Rs 1,250 crore on expanding its multiplex business, DT Cinema, by adding about 500 screens in the next four to five years.

Currently, DLF is at a pre-operative stage with about seven screens. In another four to five years time, the target is to have 500 screens across India. By September this year, two DT Cinema complexes in Delhi and one in Chandigarh would be operational and 35 screens are expected to be functional in the next seven months.

Once these initial projects start, the mid-term aim is to have about 150 screens operational within two years. Apart from north Indian cities, DT Cinema plans to set up multiplexes in Hyderabad, Chennai, Kochi, Bangalore, Mumbai, Pune, Ahmedabad, Goa and Kolkata.

The size of each multiplex could be between 35,000 sq ft to 90,000 sq ft. DLF believes that the multiplex business offered a big opportunity as there is a shortage of nearly 40,000 screens in India.

A New Hi-Tech City On The Anvil

Kochi will soon attain global status with the coming of a Rs 5,000-crore hi-tech city project. The Bangalore-based Shobha Developers have signed up an MoU with the state government for setting up this hi-tech city.

Sobha Hi-Tech City will be an integrated city with focus on research and development, knowledge dissemination, information technology and pure and applied sciences. The city is located close to the National Highway 47 bypass near Maradu in Kochi.

It will have 7 million sq.ft. of knowledge park, commercial space to provide business-friendly ambience, hospitality and leisure projects, entertainment and amusement facilities, a marina and residential complexes. The project will be completed in eight years and would generate 75,000 direct jobs.

Source:  www.realtyplusmag.coms

Kerala realty boom: perfect balancing act

Many commercial and residential properties across Kochi have been urbanised immensely. At the same time, Kozhikode – perhaps next only to Kochi, Thrissur and Thiruvananthapuram, in real estate development – has been witnessing a quiet ‘upheaval’ since mid-2007. All these factors have led to a steady boom in the realty sector in the State, finds out R Gopakumar.

The general sluggishness witnessed in the property sector in the country, has had a limited impact on the Kerala scene which is significantly driven by the NRI economy. However, affordable housing seems to be the buzzword in Kochi, the commercial hub of the State and an emerging metro. The Smartcity knowledge village, Vallarpadom container terminal, LNG terminal, cruise terminal and marina are some of the ongoing projects that created a huge demand for housing, two years ago. These high-profile projects which were almost simultaneously announced, triggered a boom in the property sector, with the resulting frenetic activity lasting till a few months ago.

Observers say the slip between the cup and the lip, if any, would be known once the end-user comes to the scene on the completion of these high-profile projects. According to the Kerala Builders Forum, the market has been showing a steady growth, though the number of ongoing projects is not significantly high. “Work is on in about 14,000 apartment units in Kochi. What is significant is that the number of players has gone up and so has the volume of business,” says forum chairman George E George.

With prices soaring like never before, affordability has become the cornerstone of urban housing. “Since a 3-bedroom flat costs between Rs 50 and 60 lakh, the trend is to go for two-bedroom or fully furnished single-bedroom flats,” he says. This being a feature of a metro city, has been generally welcomed. Nevertheless, plush apartments are now available at Rs 2,600 to Rs 3,000 per sq ft in several areas. Such apartments are mostly bought by non-Keralites, especially Gujaratis and Sindhis who find the rates here much cheaper compared to Mumbai or Bangalore.

Kochi going urban

All these point to the fact that many commercial and residential properties across Kochi have been urbanised immensely and they are all still in the process of development. Kakkanad, the eastern end of the city, which used to be a hilly village, is the new city hub. At least 40 builders have set up projects in Kakkanad where the Smartcity is coming up. They include local players like Abad, Asset Homes, Skyline and Trinity, as well as non-Kerala companies like DLF, Puravankara and Fernvalley. Work on some super luxury apartments at prime locations like Marine Drive, is also going full steam.

A considerable number of NRKs’ (Non Resident Keralites), has chosen to settle in Kochi and this might be a reason why the real estate scene here has been recording steady growth. Apart from Kakkanad, other sub-urban areas like Kaloor, Edapally and Kalamassery have also recorded a spurt in apartment projects. These are less congested, but accessible places away from the heart of the city. Edapally, which used to be a quiet residential place till three years ago, is now a beehive of activity. With at least two malls coming up at the Edappally junction and another one near the junction on the National Highway bypass, developers are making it a hub of commercial spaces.

Kozhikode’s ‘quiet upheaval’

Kozhikode, perhaps next only to Kochi, Thrissur and Thiruvananthapuram, in real estate development, has been witnessing a quiet ‘upheaval’ since mid-2007. A large volume of inflow remittances, a strong trading class and new upcoming sectors like information technology, have led to an increase in the demand for both, residential and commercial activity. A new breed of highly demanding consumers has started looking for quality living spaces. Most retail majors are claiming space in upcoming malls. Over 40 builders are said to be focussing on the city’s real estate market.

Though land prices in Kozhikode city and suburbs have gone down after a boom, prices at many major junctions in residential localities and commercial streets in Kozhikode have been ruling high. For instance, land prices at the busy Mavoor Road junction range between Rs 35 lakh and Rs 40 lakh a cent.

Needs lead

The building industry in Kozhikode claims that it has taken up projects after taking into account, demand of customers with genuine housing needs. As a result, there has been a consistency in the rates for built-up space in both, residential and commercial categories. The builders say they do not expect the rising interest rates and slowing growth to affect this demand. As in other parts of the state, Kozhikode also gets a large inflow of NRI money into real estate. However, the focus of the builders is on domestic demand which is growing at a healthy rate. They say the NRIs’ always look at bigger cities like Kochi when they make an investment decision. The realty boom in a city like Kozhikode is led by local clients.

The much-awaited expansion of Kozhikode airport, the growth of tourism and the potential of the city to emerge as a new IT destination, are the factors which the builders are pinning hopes on. However, it is the growing importance of the city as an IT destination that has given a fillip to the construction sector. Several companies — among them, even a Hungarian company — have announced plans to open centres in Kozhikode. The Calicut IT Initiative is trying to communicate the advantages of investing in Kozhikode to the investors. While the state IT park, Cyber Park, is fast becoming a reality, the 350-acre IT park by the Aditya Birla Group is awaiting government clearance. The proposed Advanced Technology Park spread across 60 acres, would be more of an incubation and R&D centre. A Malaysian company is promoting another industrial township in Kinalur near the city.

The rates for residential apartments now range between Rs 2,100 and Rs 3,500 per square feet, while those for premium apartments within the city, especially in places like Nadakkavu, have gone up to Rs 3,500 per sq ft. As for the commercial space, the rates are now ruling between Rs 5,000 per sq ft and Rs 6000 per sq ft, while for the premium category, it would be over Rs 10,000 per sq ft. With all these activities expected to generate more jobs and incomes, builders expect the construction activity in the city will see sustained growth.

With lifestyles in the city changing, property developers are also looking at other investment opportunities. The first major shopping mall in the state came up in Kozhikode last year. Its promoter, Mr Mehaboob, says 90% of the space has been booked by retailers.

Israeli realtor plans Us 15k-cr India spend

Elbit Imaging, an Israeli real estate developer, and its mall development arm Plaza Centers will invest nearly Rs 15,000 crore in a partnership with local developers to build malls, entertainment centres, hotels, houses and other properties in the country in the next five years. Plaza and Elbit will spend nearly Rs 10,000 crore out of the total investment mount, Plaza announced today.

Both companies have invested Rs 1,500 crore in Indian projects so far. Their projects are already under development in Pune, Bangalore, Kochi with a total built up space of 60 million sq ft. Plaza is expected to lease 10 shopping malls and leisure centres by 2010.

“We believe we could build as many as malls as possible in India over the next 10 to 15 years as there is enormous demand and the economy has substance despite some hiccups,” said Abraham Rami Goren, executive vice-chairman, Elbit Imaging. Goren said the group would bring in equity from Israel and leverage bank loans to fund projects.

Plaza also has plans to set up six to seven hotels as part of its plan in cities like Kochi, Pune, Bangalore and Chennai, among others, Goren said. “These hotels would be in the three-star to five-star category.” Elbit has a hotel management company called Park Plaza, which manages its hotels in Europe.

According to property consultancy CB Richard Ellis, nearly 100 million sq ft of retail property development is in the pipeline for India. Some of the biggest shopping centre developers and investors have started their operations in the country.

Prominent among them are South Africa’s Old Mutual Property Investments, UK’s Liberty International, Metro Junction and Future Group’s Kshitij that have announced plans so far. Recently, Mukesh Ambani’s Reliance Industries formed a $500-million joint venture with US-based Vornado Realty Trust to invest and develop RIL’s malls. Though the share of organised retail is miniscule at present, analysts are worried about the oversupply of retail space amid the slowdown in consumer spending due to inflation.

“The situation of oversupply and saturation resulting in subsequent correction of rentals may occur in certain pockets and micro-markets in the short to medium term,” the CB Richard Ellis report said.

Sahara Prime launches project in Coimbatore

Sahara Prime City, the real estate arm of Sahara India group, launched a ten billion township project in Coimbatore today. “The project ‘Sahara City Homes’ was part of the chain of townships proposed to be developed in 217 cities across the country”, said Sunderlal, head-sales of the company. “Spread over an area of 113.33 acres, the project, the second one to be launched in south India after Kochi, would house 3,846 residential units, including high and low rise apartments with one to five bedrooms and villas ranging from Rs 2.2 million to Rs 240 million,” Sunderlal added.

The integrated township aimed at providing a quality community living by offering amenities such as club and community centre hospital, shopping mall and multiplex, school and hotel. Claiming that 30% of the space has already been booked, he said that the first of the apartments would be ready for possession by the end of the next year. He added that the company would soon launch similar housing projects amounted Rs 10 billion each, in Chennai, Madurai and Tiruchirapalli.

A New Hi-Tech City On The Anvil

Kochi will soon attain global status with the coming of a Rs 5,000-crore hi-tech city project. The Bangalore-based Shobha Developers have signed up an MoU with the state government for setting up this hi-tech city.

Sobha Hi-Tech City will be an integrated city with focus on research and development, knowledge dissemination, information technology and pure and applied sciences. The city is located close to the National Highway 47 bypass near Maradu in Kochi.

It will have 7 million sq.ft. of knowledge park, commercial space to provide business-friendly ambience, hospitality and leisure projects, entertainment and amusement facilities, a marina and residential complexes. The project will be completed in eight years and would generate 75,000 direct jobs.

Property fair to draw expats

As many as 20 property developers from India are participating in an exhibition in Jeddah aimed at showcasing investment opportunities for NRIs living in Saudi Arabia, in the real estate sector of Kerala. The ongoing “India Homes Fair”, which is presenting more than 40 projects to expats working in the Kingdom expects to achieve sales worth Rs 400 million. Eight builders from Kochi are participating in the fair which has been organised by Housing Development Finance Corporation (HDFC).

Visakhapatnam – Upcoming Real Estate Destination

In Indian real estate today, the only constant is change. Hot destinations of the last year are not assuredly the best options this year, and the next year brings its unique set of emerging investment destinations with it. Forget about the survival of the fittest. When it comes to real estate, the thumb-rule is simple — survival beyond saturation. The idea is that once a tier-one city’s emergency light goes red (indicating overload), start spreading into nearby tier-two cities. While north India has already witnessed this phenomenon, it is now the south’s turn to spring up architectural delights in the shape of housing projects which promise an entire city within a city. Topping the list of development and for investment, say experts, are Visakhapatnam (Vizag), Kochi, Mysore and Coimbatore. Visakhapatnam, one of the fast-emerging tier III cities of India is expected to be one of the next growth drivers over the decade, according to Jones Lang LaSalle Meghraj (JLLM). The city is witnessing fast growth in the residential sector. Large residential projects are being developed in areas such as Madhurawada and Rishikonda. These include KSR-Jurong Sunny Isles comprising 54 villas and another integrated township project with villas and apartments in Yendana. On the retail front, there are no operational malls in the city currently, but there are six malls under various stages of construction expected to be operational by 2010.

IHC to spend $1 bn on buying Hotels

Indian Hospitality Corporation (IHC), a joint venture of Gordon House Hotels, Mars Restaurant and SkyGourmet Catering formed last year, plans to spend as much as $1 billion to acquire hotel groups and restaurant chains.

The company has hired Ravi Deol as chairman and chief executive of Mars Restaurants, the hotel and food services division of IHC, to initate acquisitions. Deol is the former managing director of Barista and ex-chief executive of FieldFresh Foods.

“We are looking to add 2,000 hotel rooms across 17 cities, including metros and towns such as Lucknow, Amrtisar, Raipur, Chandigarh among others. We may acquire hotel groups having 5-7 properties. We are also looking at acquiring restaurants or restaurant chains and then take them to the leadership position,” Deol told Business Standard.

All these acquisitions will be done by Mars Restaurant. “We may go for a rebranding of an existing hotel chain as and when we acquire them,” Deol said.

IHC has formed a $200-million ‘hospitality opportunity fund’ and $220 million worth of warrants to be converted into equity. The balance amount will be raised by selling equity or through borrowings, IHC executives said.

Mars Restaurants has brands Such as Tendulkars’ (a 50:50 joint venture with cricketer Sachin Tendulkar), China Joe, The Pizzeria, Dosa Diner among others, while Gordon House is a venture of Mars Restaurants and currently has three properties in Mumbai and Pune. The acquisitions will add to the portfolio of Gordon House hotels.

The Indian leisure and hospitality industry is set for high growth, according to the World Travel and Tourism Council. According to industry estimates, the Indian hotel and hospitality industry generates foreign exchange earnings of Rs 35,000 crore each year in addition to Rs 10,000-12,000 crore generated from Indian customers.

The market size of branded fast-food and dine-in restaurants is estimated at over Rs 600 crore. This segment is grwoing in double digits annually attracting players like IHC, industry experts said.

According to sources, popular north Indian restaurant chain Nirulas along with Clarks hotel chain may be on the radar of IHC for acquisition and subsequent re-branding.

On the air-catering front, IHC is looking to expand SkyGourmet to 11 cities from six metros at present. SkyGourment will soon set up its air catering facilities in Kochi, Jaipur and Amritsar among other cities.

“We will also expand our air catering services globally when Kingfisher goes international. We are already catering for Jet Airways, Kingfisher Airlines, Air India Express, Indian Airlines, Malaysian Airlines and Air France. We are looking at providing catering to Emirates and Lufthansa too,” Deol said. SkyGourmet was incorporated in 2002 and is headquartered in Mumbai and employs about 1,150 people.