Developers to built Metro parking

NOIDA: To address the parking space crunch to some extent, Noida Authority has asked two developers to built multi-level parking lots for 4,500 vehicles at two of the busiest Metro stations – City Center and Sector 15. The lease agreement with the developers has a provision wherein parking lots have to be developed without the Authority shelling out funds for the purpose.

“When Noida Authority had entered in an agreement with Delhi Metro Rail Corporation (DMRC), it had promised in written to develop a parking lot at the City Center, Noida’s largest mixed land use project. According to the lease deed, Wave group has to construct a parking facility for 4,000 vehicles at the Metro station,” said Authority OSD, Manoj Rai.

“Another developer has been asked to create a facility for 500 vehicles at Sector 15 Metro station. Both the developers will built the parking lots and then hand it over to DMRC, which will manage the operations,” Rai added.

Officials said lack of space at Metro stations leads to motorists parking vehicles on roads which ends in traffic jams.

http://timesofindia.indiatimes.com/city/noida/Developers-to-built-Metro-parking/articleshow/21227975.cms

Unitech group company UCP plans to sell IT SEZ for about Rs 2,800 cr

NEW DELHI: Unitech Corporate Parks, a Unitech group firm listed in London, is planning to sell its IT Special economic Zone (SEZ) in Gurgaon comprising about 3.5 million sq ft of office space for about Rs 2,800 crore.

Unitech Corporate Parks (UCP) — listed on the London’s Alternative Investment Market (AIM) and formed to invest in commercial real estate of India — has 60 per cent stake in the Gurgaon SEZ. Unitech has remaining stake in the SEZ.

According to sources, UCP is looking to sell the Gurgaon SEZ and has given the mandate to property consultant Jones Lang LaSalle India to find out potential buyers.

JLL India has started the process to sell this asset by initiating informal discussions with the probable buyers, sources said, adding that formal bids could be called by the end of this month.

The valuation of the deal is expected to be around Rs 2,800 crore, sources said.

An Unitech spokesperson declined to comment. Unitech is expected to garner Rs 1,100-1,200 crore from this deal and the amount will be used to retire debt and fund construction of projects, sources said.

According to sources, the SEZ is expected to be completed by the year-end and 75 per cent of the area has already been leased.

UCP raised about £360 million by issuing and placing its Ordinary Shares on the AIM of the London Stock Exchange in December, 2006.

It had invested in six commercial projects in India in partnership with Unitech, of which five are in the national capital region and one in Kolkata. UCP has 60 per cent stake in these properties while Unitech has 40 per cent.

That apart, Unitech holds 12-13 per cent stake in UCP. “The Board is working actively on all future options for the Company and ways to monetise the assets as they progress,” UCP had said in its half yearly report in December, 2012.

“We continue to believe that the maximum value for shareholders will be achieved by creating investments which are substantially physically complete and well let, and so our strategy continues to be to progress the projects as quickly as tenant demand permits,” it had said.

http://economictimes.indiatimes.com/markets/real-estate/news/unitech-group-company-ucp-plans-to-sell-it-sez-for-about-rs-2800-cr/articleshow/21067073.cms

Residential Projects in Gurgaon

Twin cities to be made into brands to attract investors

NOIDA: The Uttar Pradesh government is getting ready to organize promotional activities in various states to promote its iconic cities, Noida and Greater Noida, among investors. This was announced by the Uttar Pradesh infrastructure & industrial development commissioner (IIDC), Alok Ranjan, on a visit to Noida. The IIDC was in the city on Wednesday to review the development works in the twin cities. Apart from reviewing the progress of the projects launched by chief minister Akhilesh Yadav in April, Ranjan also said that the cities will be branded and promoted by the state government as favourable industrial destinations. The IIDC also held a meeting with the Gautam Budh Nagar SSP, Preetinder Singh, to beef up security in the region.

“Noida and Greater Noida have all the elements to compete with an international city. This ranges from roads, transport and world-class infrastructure, which are usually demanded by entrepreneurs for setting up commercial units. However, what is lacking is proper branding and officials have been directed to develop a blueprint for the purpose. Officials will hold conferences and other activities in association with different business and industrial organizations in various states to invite entrepreneurs to set shop here,” Ranjan told TOI.

“There is need to develop a sense of satisfaction and security among investors. Next month, there is an event scheduled with the National Association of Software and Services Companies (NASSCOM) to invite entrepreneurs to set up units in the twin cities,” the IIDC added.

Noida and Greater Noida CCEO Rama Raman said that to improve connectivity in the NCR, the UP government is stressing on completion of the FNG project.

source:- http://timesofindia.indiatimes.com/city/noida/Twin-cities-to-be-made-into-brands-to-attract-investors/articleshow/21130731.cms

Realty project costs surge by up to 20%’

NEW DELHI: Real estate sector has witnessed substantial increase in project costs during the last couple of years as foreign fund flow has almost dried up, while interest rates and input costs have headed northward, said Jones Lang La-Salle in a report.

While rising interest rates have led to costlier bank credit, the strict RBI guidelines have made real estate lending all the more cumbersome, the report pointed out. “Currently, the costs of key inputs for real estate development are up by at least 7%. This is over and above a rise of about 25% last year,” JLL said, adding that labour cost is up 10-15 % and the prices of steel and cement have gone up by about 7%. “The net rise in construction costs is approximately 20%. Therefore, the Indian real estate sector is in dire need of foreign funding, both for maintaining growth and containing costs.”

As the Real Estate Mutual Funds (REMF) remained a non starter, FDI is the only saver which the real estate sector can look up to, JLL said. However, the ever-changing policies on FDI, taxation and development, coupled with lack of transparency and a high amount of friction in approval mechanisms have led to an uncertainty in yields and tenure of lock-in for investments in real estate, the report said, adding that this has proved to be the biggest stumbling block in attracting FDI.

The total FDI in 2012-13 came down to around $1.3 billion as against over $3 billion in 2011-12. In the current year, the situation has further deteriorated. The biggest problem is the uncertainty surrounding the investment period. Shobhit Agarwal, JLL MD (capital market), said, “At present, if a foreign investor is willing to invest for a medium term like 5-6 years, he is bound to be hesitant as it is most likely that the targeted projects would take longer than 5 years in completion. Also, foreign investors are bound to miss out on the cream of returns, which come only after the project reaches advanced stages of development or nears completion

Source http://timesofindia.indiatimes.com/business/india-business/Realty-project-costs-surge-by-up-to-20/articleshow/21640037.cms

Reliance Industries Ltd to go slow on 720,000-sq-ft Alaknanda mall following strong protests

NEW DELHI: Reliance Industries Ltd (RIL), the country’s largest privately owned company, has decided to go slow on its plans of constructing a gigantic 720,000 sq ft mall in a residential colony in south Delhi, following protests from an assorted group of upper middle class professionals who live there.

An RIL group company in 2007 had purchased a 4-acre plot in south Delhi’s Alaknanda through an auction from the Delhi Development Authority (DDA) for about Rs 304 crore. Over the years, the company has obtained reams of licences from the authorities to build a six-storey mall with three-floor basement. The mall is slated to be opened in 2014.

But Reliance had not accounted for the determined opposition from a group of local residents that calls itself the Citizens Allianceand includes economists, doctors, architects, lawyers and teachers.

This group, which held a 1,000 people-plus rally last month to protest the construction of the mall, says visitors to the proposed mall will choke traffic in the small bylanes of the locality and create pandemonium for its residents.

It claims that the residents were expecting the plot to be used for common facilities such as tennis courts, playgrounds and swimming pools, and that they were shocked to discover a mall being planned at the site. A DDA spokesperson, however, disputes this claim and says this plot was always reserved for commercial purpose in Delhi’s master plan.

A DDA spokesperson, however, disputes this claim and says this plot was always reserved for commercial purpose in Delhi’s master plan.

Citizens Alliance has in the past few months petitioned Delhi Chief Minister Shiela Dixit, BJP leader VK Malhotra as well as the Lt Governor of the city. While there has been speculation that Arvind Kejriwal was backing the protest, Ravi Kaimal, a prominent member of the Citizens Alliance, said this was not the case and the activist-turned-politician was not connected with their cause.

A person with direct knowledge of RIL’s retail plans said the company had decided to follow a ‘wait and watch’ attitude, after the protests gathered momentum. “The company is the process of executing several projects. It has plenty on its plate. It is in no hurry to complete the Alaknanda mall. All its documents for the plot are in order,” he said.

A Reliance official said the company was evaluating market conditions. “We can’t say anything as we are not sure on the return (on investment). The proposed mall is being discussed and if it is not suitable, we will postpone it,” he said.

An email sent to the Reliance spokesman on Monday did not elicit a response.

The construction of big supermarkets or malls in city centres is a controversial issue worldwide and has often led to face-offs between big retailers and local communities. Some big cities in the US such as New York and Washington DC have restricted the entry of Walmart, the world’s largest retail company. But the opposition being faced by Reliance is possibly the first anti-’big retail’ protest by local residents of a metro in India.

“In principal, if any project affects the communities, the communities should have the right to represent themselves and similarly the developer should also have right of its views. They should call an official negotiator and only then a conflict can be resolved,” said KT Ravindran, urban designer and former head of Delhi Urban Arts Commission.

Source http://economictimes.indiatimes.com/markets/real-estate/news/reliance-industries-ltd-to-go-slow-on-720000-sq-ft-alaknanda-mall-following-strong-protests/articleshow/21692003.cms

Tatas to execute Rs. 70,000 crore infrastructure projects in 5 years

New Delhi: To expand its presence in the infrastructure sector, salt-to-software conglomerate Tata Group is looking to execute projects worth Rs. 70,000 crore by 2017 through three of its unlisted firms.

Tata Projects, Tata Housing Development Company (THDC) and Tata Realty and Infrastructure (TRIL) would execute projects of about Rs. 70,000 crore, a Tata group official said.

The official added that Tata Group is aiming at encashing opportunities in various segments of infrastructure space like roads and highways, EPC, real estate and railways as half of 12th Five-Year Plan's envisaged $1 trillion investment is expected to come from private sector.

As per the plan, Tata Projects and THDC are looking to execute orders over Rs. 48,000 crore, while TRIL is looking at investing Rs. 22,700 crore in five years for developing projects in various segments of infrastructure.

This is the first time that $100 billion Tata Group has unveiled its future growth agenda after Cyrus Mistry took the baton from legendary Ratan Tata.

"Investment into infrastructure will create commensurate opportunity for players in construction sector. For example, the construction opportunity in power and roads & bridges sectors could be close to Rs. 5 lakh crore and Rs. 3 lakh crore respectively during 12th Five Year Plan at 2006-07 prices," said Siddhartha Roy, economic advisor of the Tata group in a presentation.

Citing the example of the roads and highways sector, he said that there is "large opportunity for Tata Group companies to participate in this sector in which investments are expected to grow at 16 per cent per annum".

According to a presentation made by Sanjay Ubale, managing director and CEO of TRIL, his firm is looking to execute projects worth Rs. 22,700 crore by 2017.

This includes new roads and highways projects worth Rs. 7,500 crore and expanding company's presence in various other sectors including airports, urban transportation, special economic zones (SEZs) and real estate.

The company this year constructed 110 km long Pune-Solapur four lane national highway project and also acquired three road projects from IVRCL this year. It also has plans to bid for Navi Mumbai and Jamshedpur airport projects.

Similarly, Tata Projects, which is present in engineering, procurement and construction (EPC) space and executes large and complex industrial infrastructure projects, is looking to execute projects worth Rs. 25,000 crore by 2017.

The company, which has an order book of over Rs. 15,000 crore, is already executing some large projects like 4506 cubic metre blast furnace at NMDC's upcoming 3 million tonnes (MT) steel plant in Chhattisgarh's Nagarnar and a blast furnace for SAIL's Rourkela steel plant.

In January, the company had won Rs. 3,300 crore project for construction and laying of 343-lm long double track rail tracks for a part of Eastern dedicated freight corridor (EDFC) between Khurja and Kanpur in a consortium with Spain's Aldesa Group.

The company is also bidding for city metro projects, power plants and transmission lines.

Tata Housing, the third firm of the Tata Group eyeing its pie in the infrastructure space, has 26 residential projects in 11 cities, including 8 major locations. The company is present in all segments of housing from affordable housing to luxury segments where units are priced at Rs. 3 crore and above.

It is currently developing a total of 55 million square feet of space, while 19 million sq ft are in pipeline, said Brotin Banerjee, managing director and CEO of the company in a presentation.

The company has also ventured into foreign markets such as Maldives and Sri Lanka and is exploring avenues in other South Asian countries.

source:- http://profit.ndtv.com/news/corporates/article-tatas-to-execute-rs-70-000-crore-infrastructure-projects-in-5-years-323882

May infrastructure growth slows to 2.3 per cent

New Delhi: India's infrastructure sector output growth marginally slowed to 2.3 per cent year-on-year in May from 2.4 per cent the previous month, government data showed on Monday, reflecting continued slowdown in the economy.

April's number was revised up from a provisional 2.3 per cent reported earlier.

The infrastructure sector - coal, crude oil, oil refinery, natural gas, steel, cement, electricity and fertilisers - accounts for 37.9 per cent of the industrial output, which expanded just 1 per cent during the last fiscal year.

In the fiscal year that ended in March, infrastructure grew 3.2 per cent compared with 5 per cent in the previous year.


surce:- http://profit.ndtv.com/news/industries/article-may-infrastructure-growth-slows-to-2-3-per-cent-323942

Real Estate Bill seeks to protect middle class interests: Ajay Maken

The Real Estate (Regulation and Development) Bill, which was cleared by the Cabinet on Tuesday, seeks to protect middle class interests, Minister for Housing & Urban Poverty Alleviation Ajay Maken said on Wednesday.

The Bill, which seeks to protect those buying homes from being conned by real estate developers, will be introduced in the next session of Parliament, Mr Maken added. Parliament is likely to meet for its Monsoon Session in July.

The Real Estate Bill aims to create a real estate regulator to protect home buyers from unscrupulous property developers. It has provisions for tough penalty for putting out misleading/deceptive advertisements about projects. The proposed legislation also makes it necessary for builders to get all important clearances before they sell apartments.

Mr Maken told NDTV that 22 states, including key states of Gujarat and Madhya Pradesh, governed by the BJP, have supported the Bill. However, some states like Chhattisgarh have opposed the Bill, he added.

Real Estate is a state subject and the cooperation of states is necessary to push the key legislation, Pranay Vakil of Knight Frank told NDTV.

Highlighting the significant provisions of the Bill, Mr Maken said property developers need to put project money for a specific project.  (Read: What Real Estate Bill means for you in 10 simple points)

"They can't raise money for project A and then use it to buy land for another project, say B," he said.

This will prevent developers from diverting funds meant for construction and ensure timely completion of projects, analysts said.

Mr Maken said the Bill would make it mandatory for real estate agents to register them with the regulator.

source:- http://profit.ndtv.com/news/industries/article-real-estate-bill-seeks-to-protect-middle-class-interests-ajay-maken-323042

Why Gurgaon is a better property destination than Noida

Home sales rose across most major markets in the country between January and March 2013 compared to last quarter of 2012, thanks to new project launches at attractive prices and the discount schemes on offer. Expectations of further rate cuts on home loans and the impending revival of the economy is likely to further fuel demand for new homes.

If you are planning to buy a house around Delhi, Noida and Gurgaon must be high up on your list. The satellite cities are the most sought after destinations when it comes to the National Capital Region.

Gurgaon:

Often called the 'Millennium City', Gurgaon saw demand for new homes slowing for the third consecutive quarter, according to a Bank of America Merrill Lynch report. However, the slowdown in demand had no effect on prices, which rose by an average 4.5 per cent across projects over the three-month period, the report says.

Fewer project launches during the quarter, lower inventory and rising speculation among investors led to a strengthening of prices.

Real estate biggies like DLF and Unitech, which have executed large projects in Gurgaon, launched fewer apartments to focus on execution and inventory clearance. The absorption rate in Gurgaon is slowing but is still the highest in the country among tier I cities indicating robustness in the market, Bank of America adds.

Gurgaon has the lowest unsold inventory of unsold flats in the country, the report says.

According to Bank of America, Gurgaon will continue to show strength on the back of rising number of end-users and investors.

"Prices of ongoing residential projects in Gurgaon continued to move northwards despite weak macro indicators and slowing demand trends," the report states.

Noida:

Noida also witnessed a slowdown in new launches in the first quarter of 2013 but, unlike Gurgaon, demand remained steady.

Noida is the most affordable city among tier I cities, but its absorption rate has remained subdued and unsold inventory continues to rise since year 2010, Bank of America Merrill Lynch says.

Home prices have remained depressed in Noida because of a large number of project launches, poor execution and tepid price appreciation. As a result, investors have fled the market.

Bank of America Merrill Lynch said the timely execution of projects will be the differentiating factor for Noida in the near future.

So, if you are an end user looking for affordable housing, Noida is a suitable destination. For those with deeper pockets, especially investors looking to make a quick buck, Gurgaon is the way to go.

source:- http://profit.ndtv.com/news/property/article-why-gurgaon-is-a-better-property-destination-than-noida-320498

Mumbai housing prices soar by 66 per cent in 4 years

New Delhi: Housing prices have increased by an average 66 per cent in Mumbai over the last four years on account of steady demand and rising input cost, according to property consultant Jones Lang LaSalle (JLL).

The increase has been even higher at 70 per cent in Thane and 74 per cent in Navi Mumbai.

"The cumulative price escalation figures for Mumbai, Thane and Navi Mumbai represent the highest among all cities in India," JLL India Managing Director (West) Ramesh Nair said in a statement.

Gurgaon and Bangalore saw price appreciation of 52 per cent and 46 per cent, respectively, during this period.

"Residential property prices in Mumbai have increased steadily after the correction seen post the Lehman debacle. In the period from the second quarter of 2009 to the same quarter in 2013, residential real estate prices in Mumbai have increased by 66 per cent," Nair said.

On reasons for price rise, Nair noted that the demand for investment residential properties and end-user homes in the country's financial capital has remained stable.

That apart, the consultant attributed the prices movement to limited supply of clear land, reduction in new launches between 2011 and 2012 middle and high interest rate scenario.

"In the Indian city which has for years carried the unwholesome reputation of being the most over-priced in terms of residential real estate valuations, there is no relief in sight for aspiring home buyers.

"Over the last four years, property valuations in the financial capital have increased by an average of 66 per cent. All 'expert' predictions over the last 3 years, of an imminent correction have proved to be wrong," Nair observed.

source:- http://profit.ndtv.com/news/industries/article-mumbai-housing-prices-soar-by-66-per-cent-in-4-years-322161