property Investment property Advisor -property Age

Eldeco Infrastructure and Properties Ltd have launched ‘The Studio,’ luxury studio apartment based on an internationally renowned concept in Noida. Each studio apartment has one bedroom + drawing / dining + toilet and a kitchen totaling to 825 sq. ft. approximately. The Studio is strategically located on the Expressway with the best connectivity to New Delhi, Greater Noida and the main City Center of Noida. It is 10-15 minutes of driving distance from Noida Sector 18 market, golf course, and School in the vicinity.

Courtesy:- HT Estates dtd:- 20th Dec. 2008

Bptp limited, one of the fastest rowing real estate companies in India, performed the ‘Bhoomipujan’ of its prestigious commercial project, Centra One at Sector 61, Gurgaon. Kabul Chawla, Managing Director, BPTP Limited said, “BPTP sees growing potential in Gurgaon which has become a hub of commercial and retail ventures due to its close proximity to Delhi. Prime locations have always been a key factor in all our projects and Centra One is yet another example.” Centra One, a high-tech business complex strategically located on the Golf Course Road Extension in Sector 61, Gurgaon is designed by world renowned architects Cervera and Pioz from Spain, Spread across 3,675 acres, it encompasses a dedicated expanse of offices and retail with world class amenities like Multi-Cuisine Specialty Food Court, Lounge Bars, Cafeteria, Swimming Pool, and Health Centers, Gymnasium and Spa

                  Courtesy:- ET Realty dtd:- 12th Dec. 2008

 DLF, Unitech and other real estate developers may lower prices by 30 per cent by mid-2009 to nudge buyers out of their ”wait and watch” stance, according to experts. The price cut, if implemented by the country’s builders will also push sales higher, especially of the affordable category, property consultants said. ”Many developers will come down on their asking rates after being saddled with unsold stock beyond their ability to hold on,” added Anuj Puri, chairman and country head, Jones Lang LaSalle Meghraj (JLLM) Property prices in the key cities have more than doubled in the past few years helped by a boom in the stock market and a spurt in salaries of home buyers. The subsequent measures of the Reserve Bank of India to cool the overheated economy and a subprime crisis coupled with a credit crunch, has tempered growth prospects in the country hurting sales of property developers. The benchmark Sensitive index has dropped more than 60 per cent from the beginning of the year, eroding much of the investors’ wealth and RBI has increased repo rates by 150 basis points till September this year to curb inflation. “If you take same time next year, there will be better volumes at lower prices than what they are today. Buyers will be tired of waiting and all the developers realise that price cuts are necessary across the board,” said Pranay Vakil, chairman of property consultancy Knight Frank India. To boost sales property developers have been forced to cut prices of real estate but buyers are still adopting a ”wait and watch” stance as many feel that even the lower rates continue to be unaffordable. Property prices in Gurgaon, Noida in the National Capital Region (NCR) have fallen by 25-30 per cent while Mumbai’s distant suburbs have seen 15-20 per cent drop in prices. Now property consultants foresee further price correction of 25-30 per cent in 2009. “By the middle of 2009, developers will loose holding power and cut prices sharply. Cuts will follow big time after elections,” said Ambar Maheshwari, director of DTZ, an investment advisory. Experts say that developers are likely to focus on sub Rs 20 lakh flats due to huge demand for such flats and the government’s stimulus package for Rs 20 lakh home loans. “Earlier, developers thought that there is latent demand for premium homes, but in the current slowdown, that perception has changed. There is always demand for Rs 5 lakh-Rs 15 lakh homes and developers will look towards that,” Maheshwari said. 

Courtesy:- BS dtd:- 11^th Dec. 2008

Spread in 11 acres of exquisite natural settings free from fast life, pollution and concrete jungles, Park Prime at Sector 66, Gurgaon gives the experience of a clean and health living. Located between Golf Course and Sohna Road this project received awe-inspiring response.

The project is readily approachable from the Golf course road and Sohna road. This intersection route will boast of great developments in the near future and will be studded with state of the art IT commercial from BPTP, multiple office and retail spaces from other brands as well.Park Prime is planned to be modeled as future homes with an international appeal. The project boasts of features like club, gymnasium, round the clock power supply etc. 

Just listen to DLF New project which can true your dream
1) lIn close proximity of all prominent car showrooms viz.: Harpreet Ford, Mercedes, Tata Motors, Hans Hyundai, Volvo.
2) Near Old Campa Cola Factory on Shivaji Marg
3) Shivaji Marg to Railway Station: 14 km

Specifications
* 5.88 Lac Sq.ft.of Saleable area
* 1st- 9th floor of commercial office spaces
* Floor plate size of 69,000 sq.ft. approx
* Ample stilt parking
* DLF’s most prestigious and premium project
* Futuristic development
* Adequate floor plate Size of 69,000 sq.ft. approx.
* Beautifully and immensely landscaped
* Excellent Location
* igh Visibility Project
* Well-Planned Complex
* Elaborate Parking Facilities
* Excellent connectivity
* Well Healed Catchment

Any further more info log on to:- http://www.zameen-zaidad.com

August 18, 2008 (FPRC) — Trump Organization USA announced plans to launch a $1 billion hedge fund to invest in Indian real estate. Donald Trump Jr.’s interest in the Indian real estate market was sparked in 2007 when he visited the subcontinent for the Cityscape real-estate conference in Mumbai.

The son of the brash American real estate tycoon and reality-TV star - appeared at the high-profile Cityscape India 2007 real estate conference in Mumbai to give a speech on the subcontinent’s booming property market. Trump, the executive vice president of development and acquisitions at New York-based Trump Organization USA LLC, said India’s red-hot economy has fuelled demand for more residential development, particularly luxury housing, but also hotels and resorts for the country’s flourishing tourism industry. Before he departed, Trump indicated his desire to invest in India’s real estate sector, and hinted that he wouldn’t wait long to do so. ‘We feel it is now time to invest in Indian realty projects as the quality has moved up and we see emergence of some high-end developers with a product level that will support our brand,’ he said in his speech.

It appears that time is now: Trump announced in late July that he intends to set up a hedge fund worth up to $1 billion to invest in Indian real estate. Accordingly, the privately held fund would initially target property in Mumbai and also include an Indian family as investors. Thirty year-old Trump did not give specific details about the fund, such as how he plans to raise the money, or where the first investment would be made. But in an interview with New York-based media company Bloomberg LP, he did say that it would start conservatively and expand as the opportunities presented themselves.’ The fund will be for acquisitions of real estate in the high end and across the spectrum,’ Trump said. ‘We’ll start it off relatively small and grow it as we get more familiar with the Indian market. Our entry has to be in Mumbai, and that’s where everything is going on right now in terms of the high-end real estate. That’s the place where one is going to achieve the highest prices per square foot. It sets the tone for all of the other future developments.’ Trump eschews investing in India’s smaller and less-affluent cities - he stated publicly at Cityscape India 2007 that he has no intention of entering the middle- or low-income segment because ‘the best is in the high-end sector.’ When asked at the conference which cities Trump Organization would consider for business deals, Trump responded, ‘Certainly, the city I’m standing on (Mumbai), Delhi, Hyderabad and Bangalore, where the IT sector has witnessed a boom.’………

Kensington Real Estate plans to launch projects worth in excess of £2.5bn by 2011 across different countries, including Dubai, Africa, Qatar, Morocco, Australia and India.
Ashish Thakkar of Kensington Real Estate comments: “We have commenced work on site. We have not appointed the main contractor but the soil investigations have been completed. We are finalizing a contractor for excavation shoring and piling so piling work is about to commence.”
Dubai based developer, Kensington Real Estate, has announced that it has successfully sold 70% of its £270m Kensington Crystal development, located in Dubai Maritime City.
The remaining 30% of the developer’s first UAE project will be sold at the official launch in Dubai later in October as well as other possible launches in India and London. The development is expected for completion in 2011.

This week, we take a look at the two real estate biggies — DLF and Unitech. Investors who want to take advantage of growth in the domestic real estate sector can draw strength from DLF’s impeccable delivery record and scale of operations, while the bravehearts can go for Unitech.

DLF

A prominent player in the National Capital Region (NCR), DLF is the largest listed realty company in India. Besides being present in homes, offices and shopping mall segments, it has added hotels, infrastructure and special economic zones (SEZs) divisions to its portfolio.

BUSINESS: With land reserves of over 16,000 acres spread across 32 cities, the company has delivered 224 million sq feet of completed development since 1949. While residential projects contribute around 65% to its revenue, retail and commercial projects account for the remaining 35%.

After dominating the luxury housing market, the company has now shifted its focus to mid-income housing projects. DLF plans to shift the focus of its product portfolio from residential to commercial and retail projects. Around 46% of future development is expected to take place in metros (Chennai, Bangalore and Kolkata) and another 33% in super metros (Delhi and Mumbai). This will help in maintaining its premium pricing policy.

FINANCIALS: DLF has shown phenomenal growth in sales, as well as profit. With the real estate industry growing at 30%, DLF has been one of the star performers in this sector. Its sales have witnessed a compound annual growth rate (CAGR) of more than 95% over the past three years, while its net profit has seen an over threefold growth during the same period. However, it needs to be noted that sales growth is largely on account of increasing receivables.

The company has a strong asset portfolio with accruing leasing income. Tax sops in IT SEZs make them most lucrative for builders. DLF is expected to benefit significantly, as it has more than 20 million sq ft under IT-SEZ construction. Also, the company will not be able to maintain its premium price when more projects come on stream in the NCR, its core region of operation.

FOREIGN FUNDING: Foreign players find it worthwhile to buy small stakes in individual projects of large developers in India, rather than buying out companies. DLF has managed to secure Rs 1,675 crore of private equity (PE) in seven of its group housing/township projects. Around 49% of its stake was diluted in favour of Merrill Lynch and Brahma Investments in the beginning of this year.

This came at a time when the real estate industry was going through a bad phase. Though small developers are still finding it difficult to finance their projects, DLF seems insulated from this risk by its sheer size in the industry. The company also plans to list its real estate investment trust (REIT) in FY09 and raise funds to finance DLF Assets (DAL)’s purchases.

GROWTH DRIVERS: The trend in the real estate industry has changed from amassing land banks to exhibiting delivery capability. DLF has entered into several strategic tie-ups with international companies. The list includes Lang O’Rourke for construction, WSP for design and engineering, Feedback Ventures for project management, and Dubai-based Nakheel for SEZ development.
A key catalyst for the company will be DAL’s ability to consistently raise funds to buy commercial assets from DLF. With the shift in the company’s focus to commercial and office segments, this can also be made available for listing through a REIT, once DLF gets regulatory approval.

RISKS: The company currently has large projects under execution. Timely delivery of these projects will be a key concern. Moreover, on the financials’ side, the company has a high level of receivables that may impact its cash flows, which are stretched as of now. Also, delay in raising funds for DAL can impact DLF’s topline in future.

OUR TAKE: DLF’s strong record of delivery schedule and its scale of operations are proof of its operational capability. Moreover, the low debt on DLF’s balance sheet makes it a much safer bet for long-term investors who can take advantage of growth in the domestic real estate sector.

US Bank Completes $77-M Investments In Convertible Debentures Of Indian Realty Co

US-BANK Wachovia could pick up a significant equity stake in Hiranandani Realtors, part of Mumbai-based property developer Hiranandani Group. In the last one year, Wachovia has invested Rs 304 crore into the Indian firm through financial instruments that will be converted into equity.

A source involved in the transaction said Wachovia had entered into an agreement in August 2007 to invest $77 million in Hiranandani Realtors. The investment was to be in multiple tranches through debentures. As per mandatory documents submitted to the RBI, the debentures were issued in three phases starting October 2007 and the last tranche of Rs 106 crore came in May 2008.

“Thereafter, the two partners entered into a debenture subscription agreement on September 18 that laid out details of a phase-wise conversion of the debentures into equity,” the source added. The exact quantum of equity that Wachovia will pick in due course is not clear as it would depend on the portion of debentures that Wachovia converts into equity as per its deal with Hiranandanis and the value of the firm at that time.

While Wachovia can potentially convert the debentures into equity, the agreement gives the Indian promoters an option of purchasing them back. In such a scenario, fresh equity will be issued to the Hiranandanis.

Real estate sector has been facing tough times due to the credit crunch in economy. It has been one of the worst hit in the stock market meltdown which has hit the domestic bourses in 2008 with the BSE Realty index dropping more than 88% since hitting its peak in January this year. The inflow from Wachovia happened before the fresh round of selling in the domestic stock market which began in September. Hiranandani Realtors is part of the Hiranandani Upscale led by Surendra Hiranandani, one of the cofounders of Hiranandani Group known for its luxury townships in Mumbai. Hiranandani Realtors is developing a new township in Chennai with a project cost of Rs 3,500 crore. The project is spread over 108 acres and includes residential apartments, a hotel and some commercial area.

Besides completing existing projects, Hiranandani Realtors is also looking to pick an equity stake in another group firm—Lake point Builders—that has its own existing township project in Bangalore. This is expected to be financed through surplus cash with the firm currently parked in banks.

Wachovia, which is into banking, asset management, wealth management and corporate and investment banking products and services, is being acquired by Wells Fargo. Wells Fargo, the largest US bank by market capitalisation, had announced a $15.1-billion deal last month after Citibank failed to buy out Wachovia.

                                                               Courtesy:- ET dtd:- 1st Dec. 2008

Any further info log on to http://www.zameen-zaidad.com/

Flats Aimed At Middle-Income Groups Are Being Snapped Up, Even In The Current Scenario Of Market Downturn As the merchants of doom are spreading canards that realty sector has touched the pit and is in a very bad shape, there is a rosy picture emerging that of buyers queuing up for flats in the range of Rs 25 lakhs to Rs 40 lakhs. Basically, they are the end users. They are buying flats for their own use. And as if that were not enough, banks are disbursing loans to them. It is also being reported that banks are taking time in sanctioning loans to those looking for houses that cost Rs 60 lakh and over.    P K Jain, executive vice-president of PNB Housing Finance Limited, says that even though the market was down even before the meltdown, which only hit it, further, they are still giving loans to those who are buying houses up to Rs 40 lakh. He, however, refused, to respond when asked if they were not giving loans for luxury houses.    What is the ground reality? Sunil Jindal, director of SVP Groups, says that they are selling houses in different projects. They are the flats, which they have made especially for middle-income group. I don’t say that there is a scramble for houses. But, people are coming in to purchase houses in our Gulmohar Green project in Mohan Nagar and Gulmohar Towers in Ghaziabad. Flats in these projects range from Rs 25 lakh and above, but definitely less than Rs 50 lakh, says Jindal.  Those who are closely associated with realty sector say that these flats are generally purchased by those government employees who can not buy houses in Delhi. As Delhi has slipped out of their reach, they settle for houses in NCR town. As they have been living in Delhi for decades on end, they can not return to their hometowns. Hence, they buy houses in NCR towns.  Devinder Gupta, CMD of realty advisory Century 21 India, says there are also many people living in other cities or abroad who buy houses for their parents, and that the quantum of such purchases is very high. As joint families are breaking up due to various factors, the breakaway factions of the families are also buying houses according to their budget. They are pushing the realty market in its own way, says Gupta. Kailash Chandra is a classic case referred to by Gupta who has recently shifted to a house built by a known builder. Kailash Chandra, who retired as an assistant editor of a leading news agency, says very candidly that he managed to purchase this flat only after his London-based son fully financed it.  Pankaj Tyagi, director of Bhanu Infrastructure, is a little measured in his views, in so far as the current market situation is concerned. Tyagi says the market has seen setbacks over the last couple of weeks due to various factors yet people are buying houses for their use. I feel the middle-income group is the engine of realty sector. And, it is very important that they remain in the market, says Tyagi. He, however, says that the market is far from being in the pink of the health. Meanwhile, there are some realty experts who feel big time realtors are making luxury and high-end houses for the simple reason that the margin of profits in those segment are very high.    And after buyers for their projects disappeared from the market, they are allegedly painting a wrong picture that realty market has touched the nadir. A senior functionary in HDFC Bank confirms that banks are extremely weary of lending money to those loan seekers who look for a huge loan.   

The last word comes from Sanjeev Shrivastava, CMD of Assotech. Sanjeev says: We are selling our flats for middle-income groups regularly at our The Nest project, on Crossings Republic on National Highway-24, easily. The rates of these flats are reasonable and middle-income people can buy them.

                                                                                                                         Courtesy: - TOI dtd: - 22nd Nov. 2008