Move to improve transparency but make liquidity more difficult to come by
The company may partner with local governments and land owners to launch its projects.
Real estate companies such as Unitech, Peninsula Land, HDIL and Future Capital, the financial services arm of Future Group, are in talks with investors including some leading private equity funds for raising investments for their projects, after the collapse of Lehman Brothers, whose third party fund had promised investments in these property companies' projects, according to industry sources.
Around 25 per cent of residential units in Dubai are lying empty as the impact of the global downturn continues to hit the UAE's property sector.
Internal assessment follows banks' worries over systemic risks.
The government had removed all directors related to the Raju family from the board of Satyam before it was handed to the Mahindra group.
Home sales slow after price spurt, but office market picks up as economy does.
Developed by Emaar Properties, one of the world's leading real estate companies, the 818-metre tower is expected to be unveiled in January coinciding with the fourth anniversary of Vice President and Prime Minister Sheikh Mohammed bin Rashid taking over as the ruler of Dubai.
Failed attempt to acquire stake in Kolhapur-based bank seen as trigger.
The move comes 18 months after the cash-strapped developer was allotted 35 acres by the Delhi Development Authority to build and maintain an international convention & exhibition centre, hotels and allied commercial facilities. The cost of the project is estimated at Rs 6,000 crore (Rs 60 billion) and was expected to be completed in three years.
A slew of real estate companies, like DLF, Omaxe, BPTP and Avnija Properties (Dalmia Cement), and large corporations like telecom bigwig AT&T, Sterlite, Videocon, JSW Power, Hinduja's HTMT, Moser Baer Infrastructure, Ispat Industries Ltd and a Sam Pitroda-owned company are among the 25 companies whose applications will not be immediately processed by the Department of Telecommunications (DoT) for awarding mobile licences.
Property developers expect to boost sales of homes and borrow funds at lower rates after the Reserve Bank of India on Friday reduced its key benchmark rate and cut the cash-reserve ratio requirement in a bid to help banks lower interest rates and lend more to cash-starved sectors, including the real estate. They are hopeful of attracting more overseas investment in projects as demand revives.
Real Mallorca are still in talks with former Newcastle United chairman Freddy Shepherd about a possible takeover, the Spanish Primera Liga club said on Wednesday.
The government said on Sunday that public sector banks would shortly launch a package for home buyers. The government expects lower interest rates offered by the public sector banks to trigger similar moves by the private banks and housing financing companies, thereby spurring the demand for homes.
Six infotech special economic zone projects of the Unitech Group, which owns the country's second-biggest real estate company, have been delayed by as much as three years owing to slowing demand and delays in government approvals, sources said.
The model, under which retailers share a percentage of their sales with real estate companies, is seen as a fair way of sharing risks between the two stakeholders. Five companies contacted by Business Standard cite higher rentals charged by real estate developers, coupled with lower-than-expected footfalls, as the reason for their preference towards a revenue- sharing model.
Speculators often leveraged volume discounts on property purchases to re-sell them at prices lower than those available to individual buyers. This created problems for realtors when demand slowed, since it put pressure on them to take a hit on margins and lower prices still further. The lock-ins are expected to be introduced mostly for mid-income projects that offer prices 20 to 30 per cent below the market and, therefore, attract more undercutting from bulk discount buyers.
Developers in the past year have restructured debt, sold non-core assets and tweaked the product mix, helping push up sales. This has encouraged investors to buy stocks of real estate companies and motivate analysts to revise price targets and upgrade the outlook on the sector. Reflecting the positive sentiment, the Bombay Stock Exchange Realty Index rose 58 per cent in the past month, outpacing the benchmark Sensitive index's gain of 27 per cent.
Though the fund houses have garnered over Rs 1,500 billion from investors, only 8-10 would declare their monthly FMP portfolios till a few months ago. Instead, they gave 'indicative portfolios' and 'indicative returns' to the potential investor. This month, all fund houses declared the portfolios of their schemes because of the half-yearly results. And, to the horror of many investors, the real portfolios were 80-90 per cent different from the 'indicative portfolios.'
Strong response from institutional buyers has prompted the promoter family of India's largest real estate company DLF to raise the shareholding it had put up for sale from 100 million shares or 6 per cent to 168 million shares or nearly 10 per cent to raise Rs 3,850 crore from qualified institutional investors, including foreign investors.
Unitech and Indiabulls Real Estate Ltd (IBREL) have deferred the listing of their respective real estate investment trusts (REITs) on the Singapore Stock Exchange (SGX)owing to the liquidity crunch in the global markets. Both Unitech and IBREL have received approval from the SGX for the initial public offers (IPOs) of their trusts.
Realty FII norms, which were recently put outside the purview of Press Note 2 (2005), are vague about pre-IPO investments.
With Pirojsha Godrej at the helm, Godrej Properties posted a fourfold jump in profit in the third quarter of the current financial year, probably the only real estate company that did so well in that quarter.
It also signed a 24:76 joint venture agreement with Delhi-based real estate company Emaar MGF for building six hotels under the upper mid-segment brand Hyatt Place. Both companies will invest $200 million into the project. The first of the Hyatt Place hotels will be launched by 2011. The remaining 14 hotels will come up under the Park Hyatt, Grand Hyatt and Hyatt Regency brand names. The new properties will recruit staff in excess of 7,000.
According to industry estimates, around Rs 8,000 crore of real estate projects covering over 40 million square feet are facing delays.
DLF Ltd is acquiring the privately-held super luxury resorts and spa chain Singapore-based Amanresorts for around $250 million.
Asks lenders to make sure that end use of advances to commercial real estate.
ED has come across two immovable assets - one flat in Dubai and one land parcel in London. It is examining the valuation of both properties, estimated between Rs 150 crore and Rs 200 crore.
Real estate company Sobha Developers' net profit has more than halved for the 2009 financial year, as property sales dipped sharply in the country, leading to dropping revenues and profits.
Analysts, however, suggest investors remain selective on realty stocks and buy only where there is revenue visibility and a credible promoter backing.
The IT personnel had also seized currency and cash and jewellery worth Rs 6 crore (Rs 60 million) from Delhi-based Suncity Projects during searches, initiated on September 25, that lasted 30 hours, official sources said. According to the Income Tax department, the company had allegedly shown investments in other companies, which were later found to be of the same group.
Of the total, the financial creditors - banks, bond holders and other financial institutions - have claimed Rs 86,892 crore.
SIHL has invested about Rs 25 lakhs (Rs 2.5 million) in establishing the present facility at its Lucknow township. The Lucknow laboratory has impact-testing machines, and is also equipped to test compression factor, stone and sand aggregate value, crushing value, and moisture content.
Leading United Arab Emirates-based firms, especially in the real estate sector, have joined the list of global companies, targetting investments in India in hotels, malls, healthcare, housing, IT parks and integrated townships.
After cautioning over an asset bubble in the real estate sector, the Reserve Bank of India has cracked the whip. The apex bank has sought clarification from six real estate companies on their proposal to raise external commercial borrowings.
It seems the Bangalore real estate bubble has burst. The city, which saw some unrealistic rise in property prices in the past few years, has witnessed a sharp drop this year. A survey conducted by a real estate firm corroborates this. Real estate company Asipac states that real estate prices in the city have dropped by at least 10 to 20 per cent in the past one year.
DLF, India's biggest real estate developer, has repaid dues and may not need to approach lenders to take advantage of a central banks relaxed rule that allows banks to restructure cash-strapped real estate companies loans.
The real estate sector might have been caught off guard by the second wave of the Covid-19 pandemic, but large listed developers like Godrej Properties and Prestige Estates Projects soldier on undeterred. They aim to have sales bookings of Rs 10,000 crore in the next few years.
A slowing economy needs stimulus packages to bring back growth on the track. It is my belief that while the government has to do its bit in areas like infrastructure, hard and soft, the private sector is yet to do enough this time around.
After launching mid-income houses, real estate companies are now targeting low-priced homes in the sub-Rs 10 lakh (Rs 1 million) category to improve cash flows and beat the slump in the property market that has been driven by high borrowing rates.
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