Provogue invests Rs 1,500 cr to develop 6 new malls

Provogue India has invested over Rs 1,500 crore for setting up six new malls, which would be developed by its real estate arm, Prozone Enterprises, and come up in the next two years.

Apparel maker and retailer Provogue also plans to open 50 new retail stores in the next two years at an investment of around Rs 20-30 crore.

“We have invested Rs 1,500 crore in our mall business and three of them will be opening soon this year,” Provogue Managing Director Nikhil Chaturvedi said adding that the first one would come up at Aurangabad, followed by one each at Nagpur and Coimbatore.

Each mall would be of one million sq ft and will include residential and office space as well, Chaturvedi said.

Provogue today announced Bollywood superstar Hrithik Roshan as its new brand ambassador.

Asked if the company was scaling down its mall- developments, Chaturvedi said, “We are not scaling down and are very aggressively expanding both our businesses (retail and mall development).”

Source:http://www.business-standard.com/india/news/provogue-invests-rs-1500-cr-to-develop-6-new-malls/75505/on

Ambuja Realty in big hospitality push

Kolkata: Ambuja Realty, the Kolkata-based real estate company promoted by Harshvardhan Neotia, is betting big on hospitality and hospitals. It is planning to invest around Rs 1,000 crore over the next five years for expansion plans.

Harsh Neotia, chairman, Ambuja Realty told DNA Money, “We are seriously looking at it and we want to expand in that area. There are bigger players than us but we want to go big in this vertical.” The company plans to open a chain of resorts in the hilly areas of West Bengal including Darjeeling and Kurseong.

The construction on these properties would start in a few months. The group is taking up construction for its hospital project at Siliguri in November at a cost of Rs 65 crore.
It is not yet decided whether the hospital would be operated under the Bhagirathi Neotia Hospital brand or under the parent group itself.

Ambuja Realty is also opening an IT park called Ecospace on an area of 1 million square feet; the first phase of half-a-million square feet is ready to be leased out and the rest of the project would be completed in a year, Neotia said.

The project cost is Rs 280 crore. The realty firm had acquired land for an IT park at Mihan, Nagpur but has not started the development due to recession. The project is unlikely to come up soon.The developer has differed from its peers’ idea of converting commercial development area into residences.

Neotia said, “There is no change in our plans we will go ahead with the same compositions as planned.”Ambuja Realty had earlier planned a hospital in a joint venture with the Elbit group from Israel.

The JV, Neotia Elbit, could not take off due to unavailability of land for the project.
Neotia said, “In West Bengal acquiring large chunk of land is a very big problem. Projects can be successfully developed if they are taken up on small chunks such as 3-5 acres or 10 acres, but development on hundreds of acres is not possible.” Now, the Elbit group has moved to set up its hospital unit in Bangalore on its own.

Ambuja is also developing residential projects. Its maiden township in Amritsar will see its next phase development this year.Also in the pipeline is the third phase development of its housing schemes in Kolkata.

On realty prices in Kolkata, Neotia said, “Prices are not falling any further. They have bottomed out and we expect it to move up from here. Though it may take some time but we see revival.”

Source :http://www.dnaindia.com/money/report_ambuja-realty-in-big-hospitality-push_1289470

Hospitality giant on land hunt for city address

KOLKATA: Zuri Hotels & Resorts a multinational conglomerate promoted by a consortium of investors from West Asia is scouting for opportunities in Kolkata. The company is open to contract management opportunities as well as setting up its own hotel in the city. The Zuri Group is into real estate, floriculture and hospitality with resorts and hotels in Kenya, the UK and India.

“The Zuri group sees tremendous potential in Kolkata and rest of the east. We are keen to be present in the hospitality sector here at the earliest. We are in talks with a couple of hotels on a possible management contract and use of the Zuri brand. If something does not work out within six months, we will look at a 1.5-2 acre plot in Kolkata proper to set up a 140-170 room business hotel. The investment will be around Rs 200-225 crore,” said Aditya Mata, general manager of the Zuri group’s flagship property in Kumarakom, Kerala. The group owns two other hotels in Goa and one in Bangalore.

The team currently camping in Kolkata to negotiate with potential partners is looking for a property with large banqueting facility to tap the marriage market. “Since marriages in Kolkata are elaborate, we want to get into the business. It’s a good money-spinner as well,” said Mata.

Incidentally, the company was looking for land in New Town and Rajarhat but developed cold feet after the Vedic land scam. “Land has become a hot potato. The thing that happened in Rajarhat was an eye-opener. We are now looking for a property in the central business district,” company spokesperson Priti Chand said.

Apart from Kolkata, the group is eyeing properties in Ahmedabad, Pune, Chennai, Nagpur, Visakhapatnam and Mysore. While three of the four hotels that the group has in India are resorts, the company is now looking at business hotels that have a shorter return on investment.

Meanwhile, city-based Gama Hospitality (GHPL) on Tuesday signed a master franchisee agreement with Global Franchise Architects (GFA) to launch four international brands Coffee World, Pizza Corner, The Cream & Fudge Factory and The Donut Baker in the eastern region. With an investment of Rs 52 crore, GHPL will focus on Kolkata in the initial phase this year.

“We intend to open 35 outlets in this part of the country in the next 18 to 24 months using up a cumulative floor-space of about 42,000 square feet. All the four brands should be in Kolkata by the end of this year,” Gama’s director Gaurav Agarwala said.

source :http://timesofindia.indiatimes.com/news/city/kolkata-/Hospitality-giant-on-land-hunt-for-city-address/articleshow/4988332.cms

Real estate moves towards industrial hubs in tier 2 & 3 cities

The demand fundamentals of India are now focused around cities that have sufficient economic activity, be it industrial, service sector-driven or  incentive-driven programs by the State Government. In Gujarat, which has seen considerable industrial progress, cities of Ahmedabad, Surat and Vadodara come readily to mind.

Baddi in Himachal Pradesh and Pantnagar and Rudrapur in Uttaranchal attracted a lot of residential developers, thanks to government policies. In the South, Coimbatore, Vizag and Kochi emerged, either thanks to a large investor segment or as the outcome of sufficient economic activity. Towards the West, Pune, Nasik and Nagpur are noteworthy in this context.

In all cases, developers positioned their development close to industrial hubs, targeting a totally different price segment. While this was a worthy ambition , it was poorly conceived as a plan since many of them did not factor in State Government-level regulatory challenges such as local municipal laws.

Source : http://economictimes.indiatimes.com/Markets/Real-Estate/Realty-Trends/Real-estate-moves-towards-industrial-hubs-in-tier-2-3-cities/articleshow/4970256.cms

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

Changing Real Estate Scenario in Tier 2 and Tier 3 Cities

The demand fundamentals of the India story are now focused around all cities that have sufficient economic activity, be it industrial, service sector-driven or incentive-driven programs by the State Government. In Gujarat, which has seen considerable industrial progress, the key cities of Ahmedabad, Surat and Vadodara come readily to mind. Baddi in Himachal Pradesh and Pantnagar and Rudrapur in Uttaranchal attracted a lot of residential developers that met with success, thanks to proactive Government policies. In the South, Coimbatore, Vizag and Kochi emerged, either thanks to a large investor segment or as the outcome of sufficient economic activity. Towards the West, Pune, Nasik and Nagpur are noteworthy in this context. In all cases, developers positioned their development close to industrial hubs, targeting a totally different price segment and making the most of it.

This said, every developer was inspired to create a national footprint three to four years back. While this was a worthy ambition, it was poorly conceived as a plan since many of them did not factor in State Government-level regulatory challenges such as local municipal laws. They also did not consider that they may not have had the requisite financial resources, organizational depth and knowledge of the local markets to manage and execute projects in Tier II and Tier III cities. Nor had they accurately gauged the demand fundamentals of these locations. Such developers proceeded to enter into land acquisition on their own equity and were caught short-footed, not realising that the property cycles were then at their peak, and that there was bound to be a correction – if not a fall.

Major players are now going to re-align their positions vis-à-vis unexplored territories. There is now a very clear realisation that it is extremely difficult to become a genuine Pan India player in every geography and real estate segment. Moreover, developers today have woken up to the fact that there is only limited capital available to real estate players today – capital that is earmarked for residential projects, construction funding against achieved leases and signed contracts, or for cities displaying sufficient demand even in subdued market conditions. In the current context, it makes sense for developers to re-strategize and focus on their core geographies. For example, if a certain developer is extremely accomplished as a residential player in the South, having high credibility and sufficient brand recall in this region, such a company would ask itself how wise it is to experiment in the North or the West, and whether it would not make more sense to expand in the South.

Likewise, developers accomplished in IT projects would now concentrate on geographies that feature a healthy IT component, and avoid branching out into cities that lack a sufficient volume of such activity. Such developers would see the virtue of focusing on IT-centric cities such as Bangalore, Hyderabad, Chennai, Mumbai, Gurgaon and Pune, and re-think on plans to invest in cities that lack Information Technology activity. Tier II and Tier III cities still represent a great story, especially in terms of affordable housing for industrial workforces. However, this story may no longer be suitable for some of the larger developers. These are locations where the strength of regional players will come into play. There is at least one strong developer in every region. For instance, Panchshil Realty, Magarpatta, Paranjape Builders and Kumar Builders are very powerful local brands in Pune, with a company like Pharande Spaces practically spearheading the residential drive in Pune’s PCMC area. These brands have demonstrated that they understand their geographies better than any players who arrive from the outside to experiment on the Tier II / Tier III story.

The success of these local developers will inspire larger developers from beyond a region’s borders after the fundamentals of that area’s demand are captured sufficiently and the markets are sanitised in terms of municipal and financial market stabilisation. In the next one to two years, developers will have realigned their business strategies sufficiently to leverage the potential of Tier II / III cities that have sufficient market drivers or are witnessing considerable investor activity (such as Kochi, Surat, Mohali and Chandigarh).

Source : http://www.indianrealtynews.com/real-estate-india/changing-real-estate-scenario-in-tier-2-and-tier-3-cities.html

Budget Homes from Disha Direct receive an impressive response

Disha Direct, a name to reckon with in Real Estate Marketing has kept pace with the ever evolving Indian real estate market. A research oriented organisation and a reliable brand, Disha Direct has taken keen interest in launching projects which match the vision of potential home buyers.

FOR IMMEDIATE RELEASE / PRURGENT

Disha Direct, a name to reckon with in Real Estate Marketing has kept pace with the ever evolving Indian real estate market. A research oriented organisation and a reliable brand, Disha Direct has taken keen interest in launching projects which match the vision of potential home buyers. Therefore based on a research which shows a predicted crunch of 2.65 crore home units by 2011, Disha Direct launched two projects comprising budget homes at two growth oriented destinations – Nagpur and Murbad. Both projects, Tech Town at Butiburi near Nagpur and Tarangan at Murbad near Mumbai are now in high demand as they offer a value for money product, which balances budget and quality.

Located at Nagpur on the Wardha Road, Tech Town is a residential project comprising 2 BHK homes priced at just Rs.7.47 Lacs. Every home at this project is equipped with decent amenities. Despite being a low cost project, the exteriors of Tech Town are thoughtfully planned. Ample parking space has been allocated for vehicles of residents. Internal roads have been kept wider for easy access. Aesthetic landscaping will be done to ensure fresh air and relaxation for residents. The major plus point of Tech Town is its value for money proposition – Good quality at an economical price with bright prospects for future appreciation considering its location. Therefore home buyers with a tight budget have accepted it wilfully. Secondly, the convenient option of making payments through EMIs against bank loans has made Tech Town, the most sought after project for middle income groups. So far 80 units have been sold out, which signifies the remarkable response Tech Town has been enjoying ever since it was launched.

The second project is Tarangan, a residential project of 1 BHK (490 sq.ft.) and 2 BHK (600 sq.ft.) budget homes at Murbad. The apartments being priced in a range between Rs. 5.88 Lacs and Rs. 7.20 Lacs, has made the project an ideal choice for property investors and home buyers with modest budgets. Within two days of its launch, the response has been immensely positive with 25 units booked instantly and the shops sold out, all at once. Considering the excellent growth potential of Murbad, Tarangan has attracted the attention of the end users and investors alike. Tarangan too comes with security, special space for a garden and ample parking space. Equipped with decent internal amenities, homes at Tarangan ensure true value to the money spent.

Sharing his thoughts on the success of both projects, Santosh Naik, MD & CEO of Disha Direct says, “Both projects belong to the affordable housing genre and the success that has come our way once again signifies the growing demand for such homes. Being a customer centric organisation, we have always added priority to their demands. To ensure complete value for the money they spend, we have tried our best to make them available the best of amenities too in these low cost homes. We are also planning to launch some new projects in the same genre at destinations which are growth oriented. And we will be presenting homes that cost low but promise great value in future.”

About Disha Direct:
Disha Direct is a leading real estate marketing organisation. It offers services across the entire spectrum of real estate – be it residential properties in cities and towns, 2nd homes away from the city, plots of developed land, commercial properties, expansive acres of land or some rare charismatic homes and investment opportunities. Well-equipped with a team of over 200 professionals, 7 brands, 10 offices, International Offices at Dubai & New York, 1 Real Estate Expert Advisory, 12 completed projects, 35 ongoing projects and 4000 happy customers; Disha Direct is not just a conglomerate but a philosophy etched in the minds of many. For more details, log on to www.dishadirect.in or call on: +91-22-25817900

Source : http://www.prurgent.com/2009-07-20/pressrelease46537.htm

ABIL to pump in Rs 600 cr to set up 3 five-star hotels

The Avinash Bhosale Group (ABIL) is planning to invest Rs 600 crore for setting up three five-star hotels in Pune, Nagpur and Mumbai over the next three years.
 
The 280-room hotel in Pune will be launched by October, while the other two hotels will come up by 2011. ABIL Chief Executive Officer Sudhanshu Purohit said, “We have a strong presence in real estate and infrastructure sectors. Now, we are focusing on the hospitality segment. We already run Sun-n-Sand hotels in Pune and Goa through a joint venture company named CCPIL. Now, we are planning for three more hotels in Pune, Nagpur and Mumbai.”

While the Pune property would be operated by Westin Hotels, the hotel coming up in Parel-Mumbai would be run by the Shangrila Group. The property in Nagpur would be operated by CCPIL under the brand name ‘Sun-n-Sand’.

However, the group has delayed its ambitious five-star hotel project near Palm Beach in Navi Mumbai called Metropolice in the wake of the delayed international airport project there. The company has acquired 10 acres there for the project.

“We have slightly delayed the Navi Mumbai project because it is meant to address the requirements of the officials involved in the development of the upcoming international airport there. Once the actual work begins at the site, we will start the construction of our hotel,” Purohit said.

The company is also developing a super luxurious cold-shell residential project called God’s Blessings in Pune, where every apartment has an area of more than 5,000 square foot. “The project is nearing completion. The flats will be sold in a cold-shell manner to buyers. Later, according to the buyers’ requirements, we will complete the interiors,” Purohit said, without disclosing the project cost.

Source : http://www.business-standard.com/india/news/abil-to-pump-in-rs-600-cr-to-set3-five-star-hotels/359012/

Peninsula Delays Hotel Project

Peninsula Land Ltd, a unit of the Ashok Piramal group, is deferring its plans to build business hotels by at least six months to preserve cash, a company official has said. In May last year, Peninsula forayed into the hospitality sector with a joint venture with textile maker and real estate developer, Arrow Webtex. The JV planned to build hotels in Mumbai, Pune, Nagpur, Nasik and Kolhapur in Maharashtra. There were also plans to develop hotels in Ahmedabad, Surat, Jamnagar, Mundra port, Goa and Kerala. “Currently, all outside initiatives are on hold. We do not think it is prudent to diversify rather than executing our current projects. We will look into new projects in the second half of this year when we expect markets to go up. It is more important to preserve cash in the downturn,” said Rajeev Piramal, executive vice-chairman, Peninsula Land.

Real estate developers such as DLF, Parsvnath and Unitech are also going slow on their hotel plans due to tough credit environment and fall in occupancy rates. DLF, the country’s largest property developer, is said to be pushing back its hotel plans by 12-18 months, another Delhi-based realtor Unitech, has sold its Gurgaon hotel to reduce its debt burden. “Land values are not attractive and still there is more scope for correction to launch these projects,” said Piramal. Peninsula and Arrow Webtex were to create a special purpose vehicle (SPV), where they would hold 50 per cent stake each. In the first stage, the JV was to invest Rs 100 crore and build 10 hotels of 100 rooms each, aggregating 1,000 rooms.

Peninsula is also putting its plans to get into new areas such as project management, infrastructure and others on the backburner to save cash even as it is expanding into new cities such as Nasik, Hyderabad and Pune this year, amounting to 8 million square feet. Peninsula is also looking at alternative options such as fund structures wherein capital is pooled in from different parties and invested in real estate projects as it is yet to close its Rs 1,400-crore Paramount offshore fund floated earlier.

The company is expecting nearly Rs 2,000 crore cash flows from its Mumbai projects mainly from the Peninsula Business Park project in Lower Parel area of Central Mumbai and from the Peninsula Technopark project in Kurla, which has been sold to the Essar group wherein it is yet to get full payment due. The company posted 49 per cent increase in its profit after tax to Rs 35.96 crore for the fourth quarter of FY 2009 as compared with Rs 24.06 crore it posted in the corresponding quarter of the previous financial year.
Source : http://www.indianrealtynews.com/real-estate-developers/peninsula-delays-hotel-project.html

‘The Orchid’ brand forays into Konark and Raipur

Kamat Hotels India Ltd (KHIL) is in the process of developing 600 additional rooms under ‘The Orchid’ brand across India. Presently, properties are under development in Nagpur, Coimbatore, Raipur and Konark. Upcoming properties will be set up at greenfield locations and will be entirely managed and operated under the KHIL banner. “The Orchid brand will continue to grow through tier I and II locations across India. For KHIL’s premium brand, we plan to tap emerging markets for potential locations,” says Vishal Kamat, Director, KHIL to Hospitality Biz. KHIL will develop a 30 room all-suite hotel in Konark, Orissa and a 100 room hotel in Nagpur. The Coimbatore and Raipur properties are expected to come up with about 200 and 120 rooms, respectively. “KHIL has always positioned The Orchid as a business hotel and we are keen that we develop and manage hotels under this brand to maintain its exclusivity in the market. Unlike Concept Hospitality Ltd (CHL), which presently manages a few Orchid hotels in New Delhi, Kollam and Jalandhar, KHIL will not operate simply as a hotel management entity in the market,” clarifies Kamat

Source : http://www.hospitalitybizindia.com/detailNews.aspx?aid=4676&sid=1

Mahindra Lifespace plans affordable homes in Nagpur

Mumbai: Real estate firm Mahindra Lifespace Developers Ltd, a subsidiary of auto maker Mahindra and Mahindra Ltd, is the latest to join the so-called budget housing bandwagon as more buyers shun pricier projects for affordable homes.

The firm, known more for its of high-end projects, particularly in Mumbai, is building 1,500 apartments in a special economic zone (SEZ) in Nagpur, with price tags of less than Rs3,000 per sq. ft, said Pawan Malhotra, chief executive of Mahindra Lifespace.
The SEZ is part of an international airport that would function as a cargo hub, and includes a 25-acre residential project. SEZs are economic enclaves that enjoy tax holidays and other financial incentives.

The venture with BE Billimoria and Co will see an investment of Rs500 crore in the next 4 years
Property prices in and around Nagpur, Maharashtra’s third largest city by population, are typically in the range of Rs1,600-2,600 per sq. ft, a consultant at property advisory Jones Lang La Salle Meghraj said, requesting anonymity.
“The idea to provide housing that would give the target buyers good value for money. The SEZ and the airport will demand at least 1.5 million sq. ft of development once all the industries come up,” Malhotra said.
The Nagpur residential project, a venture of Mahindra Lifespace and BE Billimoria and Co., will see an investment of Rs500 crore in the next four years.

Mahindra Lifespace also plans mid-segment apartments starting at Rs3,000 per sq. ft alongside more expensive villas in its Chennai SEZ.
In the past eight months, as the Indian realty market began slowing following a global slump, developers such as Puravankara Projects Ltd, Omaxe Ltd and Ansal Properties and Infrastructure Ltd have leant towards more affordable housing projects. Others such as DLF Ltd and Sobha Developers Ltd have cut prices by 15-30% in some of their projects.
But at a time when developers are struggling to generate liquidity, Malhotra says Mahindra Lifespace has Rs260 crore in hand. Its standalone revenue for the year ended December rose 28% to Rs55.7 crore.

Formed in 2001, Mahindra Lifespace, earlier known as Mahindra Gesco, has nearly 4 million sq. ft of development in various cities.
The company stopped buying land nearly two years ago and is now pursuing joint development projects. A 10 February report by brokerage Motilal Oswal Securities Ltd says the firm has no major borrowings against land it has bought.
Macquarie Research, an arm of Australia’s Macquarie Bank Ltd, says in a February report that Mahindra Lifespace has low debt levels, primarily due to its conservative management style, and relatively slow pace of acquiring land and launching few projects in the past three years.

The company’s gearing, or debt as a percentage of equity capital, is only 0.2%, says the report. In comparison, rival Unitech Ltd’s gearing is at 34%, it says.
“The company has been conservative and restrained during times when liquidity was available with multiple debt options and other developers availed of them,” said Unmesh Sharma, an analyst with Macquarie Research.

Mahindra Lifespace shares have fallen 75% from Rs665.10—its 52-week high reached last May—to Rs161.95 at close on Monday. The markets were closed on Tuesday.

Source : http://www.livemint.com/2009/04/07215720/Mahindra-Lifespace-plans-affor.html

SCS eyes tier II locations for expansion in India

With an aim to expand in the Indian market, Sterling Construction Systems (SCS), an Australia-based construction firm, is considering tier II cities like Nagpur to develop its properties. Presently, the company has two projects under development — Tuscany Terraces, a condotel and Warai Woods, a villa vacation home project in Neral.

Speaking exclusively with Hospitality Biz, Harinder Bhalla, President – Marketing & Sales, SCS states, “In tier II locations in India, the consumer base is constantly upgrading its lifestyle. The development of a vacation home project is expected to garner good response in such a segment.” While plans for development are in the initial stages, the company also plans to develop mid sized projects to mitigate risks. SCS is considering the development of a villa project in Mangalore over 60 acres of land, as well. It is also open to joint ventures with developers, who own land parcels for similar project development.

The company’s existing projects under development in Neral are observing villa and chalet sales through referrals from existing clients. Bhalla states that this will be an effective model for the company’s business development. “With sections of our properties scheduled to be commissioned soon, our prime challenge is to make Neral and this area a ‘destination’,” he opines. The company plans to conduct several evening and weekend events within the property for its promotion. It recently conducted a wine and cheese tasting event at the property. The company also plans to provide value additions to its consumers.

Tuscany Terraces will start operations of about 70 apartments by April 2009. The company will launch the project in a phased manner. Warai Woods, which is aiming for a December 2009 launch, will initiate operations with 38 chalets, a club house and hotel. Both properties will consist of spa facilities to be managed by Sohum Spa. However, the market slowdown has led to the company putting phase II of Warai Woods’ development on hold. In the second phase, the company had planned to add adventure tourism facilities to the property. It was also considering addition of meetings, incentives, conventions and exhibitions (MICE) facilities. The company has earmarked about Rs 300 Crore for Warai Woods’ development.

SCS aims for a three year break-even period for Warai Woods, as compared to five years for the Tuscany Terraces project. The company is also focusing immensely on the development of security systems in the project. “We want to stay focused on the vacation home and social housing market, create benchmarks for the same in the Mumbai market and then further our development in other regions,” Bhalla informs.

Source : http://www.hospitalitybizindia.com/detailNews.aspx?aid=3952&sid=1

IVRCL’s four new projects seen bringing Rs 300 crore

Hyderabad: IVRCL Infrastructures and Projects expects 4 of its projects to start contributing to revenues from next fiscal.

While the exact timelines of the cash flows are yet to be set, the build-operate-transfer (BOT) projects are almost complete and revenues are certain to flow in from 2009-10, E Sudhir Reddy, chairman and managing director of the Hyderabad-based company, told DNA Money. Together, the four projects are expected to provide cash flows of about Rs 80 lakh to Rs 1 crore per day, adding over Rs 300 crore to the annual topline, he said.

The biggest of these is the Chennai Water Desalination project, designed to pump desalinated water to the metro. The project, which can pump as much as 100 million litres of water per day, is complete and going through a trials phase.

“We are expecting Rs 48 lakh from this project per day. The margins in this would be about 18-20%,” Reddy said, adding, the project would be operational commercially in the first quarter of the next financial year.

Similarly, the company is working on three BOT roads, including two stretches on Salem-Coimbatore road and one on Amritsar-Jalandhar road. The company would collect tolls on the three roads.

“We are able to give out the exact revenue-flow numbers for the water project since we know the output and the price at which it would be pumped out. For the road projects, we are purely going by the traffic numbers that are available and unless we actually see that traffic using the roads, we can’t specify the revenues,” said Reddy.

The company has so far invested Rs 1,600 crore on these four projects, including Rs 550 crore on the desalination project. The company is focused on water projects, which account for about 65% of its Rs 14,300 crore order book today.

“We will not focus much on roads anymore,” Reddy said.

Meanwhile, IVR Prime, a group entity, has taken a hit from the slowdown in the realty market. The company has a land bank of 3,200 acres in various locations including Hyderabad, Bangalore, Nagpur, Pune and Noida, which was to be used for developing low-cost housing. However, with the market not in favour of real estate play right now, it has decided to sit tight.
“We will keep the land with us. We are not in a hurry to do something though it is not viable,” Reddy said.

Source : http://www.dnaindia.com/report.asp?newsid=1236678

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

Sahara – Gleeds Tie-up For Townships

Sahara Prime City Ltd, real estate arm of Sahara Group, has roped in UK-based management and construction consultants, Gleeds, for its 217 Sahara City Homes coming up across the country.

Sahara City Homes is a flagship real estate project of Sahara Prime City Ltd under which the townships spread over 100-300 acres are planned to be developed. Already four have been completed in Lucknow, Hyderabad, Bhopal and Gorakhpur under the Sahara States township brand. At present, nine are being developed in Nagpur, Indore, Ahmedabad, Gwalior, Lucknow, Coimbatore, Aurangabad, Solapur and Jodhpur.

In six months’ time, 22 more townships will be taken up for construction. These air-conditioned townships will offer one to five bedroom residential units in the category of high-rise and mid-rise apartments, independent row houses and independent bungalows.

Each of the cities is to have shopping malls, multiplexes, hospitals, schools, hotels, dub, community centre, retirement homes, besides multilevel security, local transport and essential services like convenience stores, banking, homecare and postal services. The focus of these townships falls on middle and upper middle class with affordable homes priced at Rs. 2600-Rs. 2800 per sq ft.

According to Sandeep Wadhwa, Head Of Strategic Finance, Sahara Prime City, the company is talking to private equity firms, banks, financial institutions and some international developers for part-funding of the townships project.

Asad Ahmed, Head (planning and Construction) has said that each of the townships will take 4-5 years for completion and SCH will start giving possessions for its Indore, Nagpur and Lucknow townships by December 2009.

Source : http://propertybytes.indiaproperty.com/?p=3167

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

Fast growing retail markets

India has six of the 10 fastest growing retail markets in Asia, with Linking Road in Mumbai the most expensive retail high street in India, according to ‘Main Streets Across the World’, an annual report by Cushman & Wakefield.

The survey, covering 236 locations in 48 countries carried out in June 2008, puts Linking Road, Mumbai, as the fifth most expensive location in Asia, and among the top three locations globally to witness the highest annual growth in rental values.

The press release from Cushman & Wakefield also strikes a note of caution. The third quarter of 2008 was significant for the retail real-estate sector as many established locations saw some decrease in value in mall and high streets.

In the last two years the rentals have grown faster than business potential, which hits rental sustainability. Though the domestic locations are positioned high in global ranking as on June 2008, Linking Road and other markets have felt the market pressure in 2008 and rentals have dropped by about 20 per cent during the third quarter. In the short run, retailers are likely to go slow and rental values could drop further.

India realty expo in Dubai

The Maharashtra Chamber of Housing Industry plans to showcase major real-estate projects in West Asia through the 11th India Realty Expo 2008 to be held in Dubai between November 27 and 29.

A press release from MCHI said the expo hopes to attract NRI investors to look at housing, commercial and retail investment options in real-estate in India. Over 25 developers, including Godrej Properties, Hiranandani Constructions, Tata Housing Development and Sunil Mantri Realty, will showcase their projects spread across cities such as Mumbai, Thane, Navi Mumbai, Panvel, Pune, Bangalore, Goa, and Nagpur.

According to MCHI, it is an ideal time for NRIs to invest in India as the prices are attractive and the depreciation of the Indian rupee against the US dollar will give them 20 per cent more value.

The forthcoming exhibition in Dubai is being attended by prominent developers, who had their projects in almost all the categories such as IT, ITES, Retail, Entertainment, Banking, Financial, Hospitality, Education and residential properties to suit all budgets, ranging from Rs 4 lakh to Rs 2 crore and more. The event is expected to see substantial investments from Indian and overseas companies. —

Source : www.thehindubusinessline.com

Nagpur finds a place on the Investment Map

According to a study done by Deloitte Touche Tohmatsu India, Nagpur is among the fastest growing investment destinations in India. Developments in the recent years support this statement. Maharashtra Airport Development Company (MADC) is developing a multi-modal international airport and a multi-product SEZ over 4,025 hectares. The MIHAN project and SEZ, which estimates an investment of $11,625 million, is tipped to be a major driver of economic growth not only for Nagpur, but also for the entire Vidarbha region, said MADC vice-chairman and MD RC Sinha. Deccan Cargo & MADC have signed a MoU to develop a cargo hub, while Air India and Gati have joined hands to develop a dedicated freighter service with Nagpur as hub. Gurgaon-based Radisson Group has started work over a five-star hotel in Nagpur. The other investments include that of the Taj Group, Hyatt, Leela, Kamat Group and Fariyas Group. Moreover, work on real estate projects like Sahara City Homes, is also in progress.

According to property consultants Jones Lang LaSalle, Nagpur is among top IT/ITES commercial destinations among the Tier III cities. IT majors like TCS, Wipro, Satyam, HCL and Hexaware Tech have purchased around 500 acres for their proposed projects. On the investment front, four major sectors are expected to fetch an investment of around $16,135 million over the next decade or so. The tourism sector has pegged an inflow of $120 million. In this context, The Economic Times and Vidarbha Economic Development Council have planned a two-day international summit on Investment Opportunities in Nagpur on November 26-27 at Nagpur. Deloitte is the knowledge partner for the summit titled “Nagpur-the Growth Nucleus of India”. The summit will focus on investment opportunities in the sectors of urban infrastructure, SEZ and MIHAN, multi-modal logistics, and tourism infrastructure.

Indianrealtynews.com

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

FIRE Cap to invest in affordable housing

MUMBAI: As affordable housing is becoming the new mantra for real estate developers, the concept is attracting a lot of attention from the real estate funds fraternity. The $250-million First Indian Real Estate (FIRE) Capital Fund Ltd is making its first deal in the segment.

According to industry sources FIRE Capital is currently in the due diligence stage with the affordable housing investment. “The deal should get concluded within 2-3 weeks,” said the source in the know of the deal.

While, the name of the real estate developer is being guarded by the realty fund, DNA Money has learnt that it is a firm operating out of the eastern region of India. “In most likelihood, the affordable housing project is being developed in West Bengal,” added the source.
The ticket size of the project will be between Rs 8 lakh and Rs 15 lakh across various permutations and combinations of apartment sizes.

Gautam Vashisht, executive director (investments), FIRE Capital Fund, said, “The intent is certainly there in the affordable housing segment in India, particularly in Tier II and Tier III cities.” However, he denied making any comment on the possible investment in affordable housing project in east India.

Fire Capital launched its first fund in 2006 with a corpus of $250 million and has already committed over $150 million across seven investments. Focusing on residential and mixed-use developments centred on residential use, its first investment was in the Indore-based M Jhaveri Group’s 137-acre township. Other investments are also in township projects in Jaipur, Bangalore, Nagpur, Chennai, Ahmedabad and Dehradun.

The venture fund typically makes investments ranging from $5 million to $30 million.

Now with close to 80% of the corpus being deployed, the venture capital fund is planning to raise another fund next year. The amount to be raised is rumoured to be in the region of $500 million. While the primary investors will be from the US and European markets the fund will also look at raising some part of it from the Middle East.
The second fund will also target real estate projects in residential and mixed-use developments (including hotels), and the focus will be on Tier II cities in the country.

Source : DNA India

Retail investment in India

Developers and private equity players are set to put India´s retail space market on full throttle with investments worth anywhere between $5 billion and $10 billion in FY09-FY10.

In moves that would lend retail space gigantic proportions, the Runwal Group and Singapore´s GIC will use a joint venture to launch a ´Our City Centre´ retail mall over 1.1 million sq ft of area in Ghatkopar, Mumbai. In the second phase of their foray, they will develop another ´Our City Centre´ over 7 million sq ft of area in Hyderabad. Mumbai-based ICS Group is their project advisor.

Equally bullish is Sheth Developers, which is building a shopping centre called ´Viva City´ over1 million sq ft in Hyderabad and Thane, Mumbai. The company is investing Rs 400 crore in this new retail development and has not associated with any private equity firms.

The sudden gush of investments has also swept across smaller cities. Media major Dainik Bhaskar Group will develop a 7.5-lakh sq ft retail mall in Bhopal. With construction already under way, the mall is likely to be up and running in December 2009. The mall comprises a basement, ground and six floors with seven anchor shops, 180 retail shops, six-screen multiplex and food courts. JMC projects have been appointed as the civil contractors and Bentel Associates, Mumbai, are the property advisors.

On the crest of the investment wave, Coimbatore-based PS Group is developing ´Our Grand Mall´, which is to be completed over the next 8-9 months. ICS Group is the retail management adviser to this project.

The pan-Indian ripples of the ´boom´ are spreading by the day. Provogue India Ltd´s real estate arm, Prozone, and UK-based mall property developers Liberty International PLC, are building a big mall each called ´Prozone Liberty Centers´ in Aurangabad, Jaipur, Nagpur and Indore.

According to sources, each shopping centre will be spread across an area of 1.5 million sq ft. Property Zone CEO Ashwin Puri says, “Prozone has formed a special purpose vehicle (SPV) in association with the ICS Group called Triangle Real Estate Fund to manage the Prozone and Liberty International´s upcoming shopping centers in India.” Meanwhile, DB Realty is developing over five retail malls in western India.

According to Sanjeev Dasgupta, chief financial officer and head of investments, Kshitij Investment Advisory Company Ltd, “With $5 billion investments coming into retail real estate development, developers are focusing on retail projects.

Disha Direct promoting Nagpur as ‘Destination Next’

The newly-established real estate expert advisory division Investment Square of Disha Direct, a Mumbai based premier real estate marketing organization, is promoting Nagpur as the “The Destination Next”. Continuing with the Disha Direct legacy of ensuring excellent returns to its investors, Investment Square is offering ASD plots in Nagpur. Since the rising demand for land puts a premium on it and often makes it overpriced, one of the first criterions used for the ASD plots from Investment Square is to offer plots that are fairly priced, minus curtailing add-on costs so as to give maximum price benefit to the buyers.

Secondly, Investment Square ensures a legitimate property for the buyer. The plots offered have all the relevant sanctions and permissions required. The plots come equipped with provisions of 7/12 extracts, clear & marketable title, N. A. order and other required permissions, thus making them ready for immediate registration. The third criterion, which is development at the site, ensures availability of complete infrastructure for the project. This means that there will be proper roads, water supply, electricity, fencing, entry gate and security. Complete transparency in transactions and hassle free formalities further characterise ASD Plots. Investment Square is offering these ASD plots at two new projects, SILVER LEAF and UDYAM ESTATE 1, developed by the Nagpur-based AXON DEVELOPERS who have been in the real estate business since 1995.

Land acquisition issues derail DLF SEZ in state

Real estate major DLF’s proposed SEZ along the Maharashtra -Goa border appears to be facing some trouble over land acquisition.

According to government sources, hundreds of locals on Monday gheraoed the company officials to protest against its compensation package.

DLF, when contacted, admitted that it faces “some minor” issues which are in the process of being sorted out. It, however, declined to state how much land it has acquired and wants to acquire. The company is buying land extensively at Aronda, near Sawantwadi, to set up the SEZ.

“The size of the project will be decided only after the land is acquired. It can either be IT/ ITeS SEZ or multi-product one,” a company official said. DLF has proposed SEZs in many parts in India like Amritsar, Ludhiana, Gurgaon, Ambala and Nagpur.”

According to government sources, with the company on a land-buying spree in Konkan, the ocals are under the impression that their land would be used up for the housing project.

The company is yet to settle the payment-related issues, the official said. Pressed further, the DLF spokesperson said: “We offer best possible rates and never had any issue related to compensation anywhere.

Care Group ties up with John Hopkins to set-up health city

John Hopkins, a US based health care group has tied up with Hyderabad based Care Hospitals Group and real estate developer Indu Projects, to set up a 2,000-bedded health city in Nagpur, Maharashtra. The conglomerates will invest around Rs 750 crore in the project through a mix of debt and equity. The state-of-the-art health city would be equipped with 10 super-specialty hospitals and has its eyes set on overseas patients. In its first phase, it will have 750 beds and will be operational in the next three years.

Government of Maharashtra is developing a multi-modal International Cargo and Passenger Hub Airport at Nagpur— an aviation hub. This project also contains a Special Economic Zone (SEZ) where the health city will be based along with other housing and industrial projects. Whilst Care Hospitals will be handling the operations, John Hopkins is the knowledge partner and will hold equity in the association. Indu Projects will be funding the majority of the investment and is expected to hold a major stake, albeit the details of the holding structure are being worked out. Reportedly, healthcare majors like Manipal Health, Artemis Hospital, Singapore-based Parkway Hospitals and Reliance ADAG were in the pipeline for the mega-project. Fortis Healthcare was in the league as well to make the final bid. However, the hospital major backed out over differences about the operational structure of the project. Talks are still on with a Thailand-based group to set up a health and wellness village in the health city.