India Real Estate News Weblog : Chennai

Chennai: Bollineni Hillside one of the Largest Residential Townships on OMR Launched

Farooq M — Thu, 19 Mar 2009 13:37:00 GMT

19th March’ 09, Chennai: BSCPL Infrastructure Ltd., a major player in the construction Industry, today announced the launch of its prestigious project “Bollineni Hillside”, on OMR. Formerly known as B Seenaiah & Co Projects Ltd.,...(read more)

DLF to Invest Rs.1000 Crores in Multiplex Business

Farooq M — Thu, 18 Sep 2008 10:35:00 GMT

Real estate giant DLF is likely to invest about Rs 1,250 crore on expanding its multiplex business, DT Cinema, by adding about 500 screens in the next four to five years. Currently, DLF is at a pre-operative stage with about seven screens. In another four to five years time, the target is to have 500 screens across India. By September this year, two DT Cinema complexes in Delhi and one in Chandigarh would be operational and 35 screens are expected to be functional in the next seven months. Once these initial projects start, the mid-term aim is to have about 150 screens operational within two years. Apart from north Indian cities, DT Cinema plans to set up multiplexes in Hyderabad , Chennai, Kochi, Bangalore, Mumbai, Pune, Ahmedabad, Goa and Kolkata. The size of each multiplex could be between 35,000 sq ft to 90,000 sq ft. DLF believes that the multiplex business offered a big opportunity as there is a shortage of nearly 40,000 screens in India.

DLF, Nitesh, HDFC vie for Beacon House

Ehsan W — Sun, 20 Apr 2008 13:53:00 GMT

DLF, Nitesh Estates and HDFC Realty are amongst the bidders reportedly in the fray to acquire NRI tycoon C Sivasankaran’s Beacon House, located off the upmarket Cenotaph Road in the heart of Chennai. The 3-acre property, a former residence of UB Chairman Vijay Mallya when he controlled Best & Crompton (B&C), may fetch as high as Rs 225250 crore, sources said.

Mr Sivasankaran has mandated CB Richard Ellis to sell the property through an auction, with five bidders indicating early interest. While multiple sources confirmed interests from DLF, Nitesh Estates and HDFC Realty, unconfirmed reports indicated that local developer Arihant and Bangalore-based Sobha Developers are also in the fray.

Mr Sivasankaran had acquired the property in early 2006 for Rs 100-110 crore, sources said.The bidders, like DLF and Nitesh, may be eyeing the property for premium residential units, which, going by the current FSI of 1.5, could see 4 lakh sq ft of fresh development. The area has houses of leading industrialists, including Murugappa Group family members, and Japanese Consulate. Recently, DMK leader and son of chief minister MK Karunanidhi, MK Stalin, has moved there.

It is believed that a leading local developer True Value Homes may sit down with HDFC Realty for joint development, if the latter shows up with the winning bid. Earlier, True Value Homes had attempted to join with Mr Sivasankaran for developing premium residential apartments on the land.

Several local real estate sources said, in view soft market conditions, the maximum price it can fetch is Rs 3.25 crore per ground (56 grounds in 3 acre). Recalling the objections raised in the past over building multi-story buildings in the posh area, the realty sources added that it is not easy to take up development unless the bidder is familiar with the local conditions.

However, the national players, which may view Chennai as a more sable market in terms of real estate prices, may put in an aggressive bid that could take the auction price t Rs 225/250 in the highest band. A few months back, Bangalore-based Nitesh Estates made a winning Rs 640-crore bid for a nine-acre plot on Chamiers Road, which is in close to Beacon House.

Nitesh is in the midst of developing a one million sq ft mixed use development including luxury hotel, retail, commercial space and serviced apartments.

Beacon House came to the fold of UB chairman Vijay Mallya after he acquired B&C. Later, when the company was acquired by Indonesia’s Polysindo, it decided to sell the property making use o the scrapping of urban land ceiling act. Since Mr Sivasankaran had picked up stake in B&C, it helped him to clinch the deal.
Source: Economic Times, April 18, 2008.

ETA Star to Invest Rs.1,500 crores in Mumbai

Farooq M — Thu, 13 Dec 2007 12:29:00 GMT

Chennai-based real estate developer ETA Star Property Developers, a part of $4 billion ETA Ascon group based in the UAE, will build a Rs 1,500 crore mall in Mumbai's Juhu area. The construction work will begin in January 2008. ETA has formed a 50:50 joint venture with Supra Estates, to develop the 10 acre plot (450,000 sq ft) into a shopping mall and service apartments. The companies have paid Rs 800-900 crore for the said plot of land. The mall will be given on a seven-year lease upon completion of the project in 2010. ETA has brought Rs 200-250 crore as equity contribution for the project in terms of foreign direct investment (FDI) and will raise the balance through banks and other financial institution. ETA has also forged a joint venture with Wavy Construction for a project based in the hill station of Khandala, Maharashtra. The project involves building luxury villas, health spas, hotels and furnished apartments. Even as the structure of the joint venture is yet to be finalised, both companies will inject Rs 400 crore for the project spread across 28 acres. A US consultancy firm, Tony Asahi, has been appointed to provide a detailed study of the area, which would help draft the final outlook of the project. ETA is currently executing a Rs 13,500 crore integrated township project at Sriperumbudur near Chennai. The project, spread over a land area of 1,200 acres, will be finished in seven years. ETA Star has created a separate special purpose vehicle for the project in which it would hold 59.9 per cent, a foreign partner 40 per cent with Tamil Nadu Industrial Development Corporation holding the rest. ETA Star is talking to a few companies in the US and Europe for the project. The company is involved in real estate ventures mainly in the southern region of the country with projects spread across Chennai, Bangalore and Hyderabad. The company is executing a residential project in Chennai, where it is developing apartments under the name of Jasmine Court. The project follows two other projects 'Binny Crescent' and 'The Gardens', both residential projects in Bangalore.

Second Hand Flats Becoming More Popular In Chennai

Ehsan W — Fri, 19 Oct 2007 11:28:00 GMT

Real estate is growing in all the metros but Chennai is not getting its fair share. This has led to stagnation in the residential market. Simultaneously, this has led to buyers opting for second hand flats as investment options. Mr Sanjay Chugh, VP - Transaction Mgmt Services, Jones Lang Lasalle Meghraj says, The buyer feels that if one is to go for a second-hand apartment on a resale basis there are two things: capital investment is much cheaper, also the registration cost which is slightly higher and the refurbishment cost, if they are getting at the location they are looking at it works out quite cheap.Besides this, second hand flats are 30 to 50 percent cheaper than newly constructed apartments. The profession is also quick and the banks readily finance resale flats as old as 35 years. So in a way it becomes best option for the investors. Although there is a huge demand for resale flats, experts say supply is not even 10% of demand.
Source: 12 Oct 07 moneycontrol.com

Cognizant to invest $100 mn more in India

Property Reporter — Fri, 03 Aug 2007 12:44:00 GMT

CHENNAI: Cognizant Technology Solutions said it will invest an additional $100 million in India, taking its total investment in the country to $300 million over the next two years.

The IT and BPO major said the additional investment will be used to expand its new Chennai campus — located in a special economic zone — which will double in size with an area of over 2 million sqft.

Cognizant is increasing the size of the first phase of planned construction of its SEZ facility in Coimbatore to over 7,25,000 sqft. It also plans to acquire additional property in Hyderabad and Chennai.

Chief financial and operating officer Gordon Coburn said: “We expect this investment to enhance our flexibility to meet the escalating demand for our services from both new and existing customers around the world.”

In November 2006, Cognizant announced it has planned to spend more than $200 million on land, building and other facilities for upcoming techno-complexes. The move, it said, would increase its existing campus area in India by more than 3 million sqft with a capacity to accommodate over 30,000 new employees.

Of the 46,000 professionals globally, over 35,000 are in India, spread across its eight locations in Chennai, Pune, Kolkata, Bangalore, Hyderabad, Mumbai, Coimbatore and Kochi.

Source:Economic Times, August 3

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JP Morgan to invest Rs 400 cr in Chennai

Farooq M — Wed, 09 May 2007 13:50:00 GMT

MUMBAI: J P Morgan Property Fund, which has mobilised over $300 million to focus on the Indian real estate, is going to set up a residential project in Chennai at an estimated cost of Rs 400 crore.

Chennai-based realty developer Arihant Foundations and Housing will develop the residential property, spread over 45 acres of land, in a joint venture with J P Morgan.

The company's Board of Directors on Wednesday authorised its entry into the joint venture (JV).

The JV would have 50:50 equity participation from both the partners, Arihant Foundations informed the Bombay Stock Exchange (BSE).

The India property fund targets key economic centres in the country including Mumbai, Bangalore, Chennai, Kolkata, Hyderabad and New Delhi, among others, to develop projects along with local partners.

Last year, J P Morgan Asset Management had announced the mobilisation of around $360 million from institutional and high net-worth investors (HNIs) from the US, Asia, Europe and the Middle East to invest in the booming Indian real estate space.

Source:Time of India, 9 May, 2007

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ETA Star Property scouts for foreign partners for township project near Chennai

Farooq M — Mon, 23 Apr 2007 11:51:00 GMT

Chennai: Chennai's ETA Star Property Developers Limited, part of $4 billion turnover ETA Ascon group based in Dubai, is holding discussions with two US and two European investors to offload an approximately 40-per cent stake. The stake sale will help finance its real estate development projects in the pipwline.

The Tamil Nadu Industrial Corporation Limited holds a 0.1-per cent in ETA Star, with the balance being held by the promoters.

According to managing director P H M Syed Ismail, the company needs funds mainly to execute its proposed Rs12,000-crore integrated township project at Sriperumbudur near Chennai.

"The project will be spread over 1,200 acres. Already we have 250 acre and the balance is in the process of acquisition." He hopes to complete the land acquisition process in six months, while the the entire infrastructure is scheduled for completion in one and a half years. "After that it will take around seven years for us to complete the entire township project. We can construct five-crore square feet."

At the launch of the company's first residential apartment project in Chennai, Jasmine Court, Ismail said, the 4.4 acre residential complex will have six individual blocks of four floors with 219 apartments, with a total built up area of 2.87-lakh sq.ft. The two- and three-bedroom apartments are spread over between 1,100 and 1,557 sq.ft. "The launch price is Rs2,990 per sq.ft," he said.

The company is developing the property in partnership with Baashyam Constructions P Ltd, Chennai.

Earlier ETA Star had built the Binny Crescent and The Gardens residential complexes in Bangalore, where the ETA group had invested in the 70-acre plot that had belonged to the erstwhile Binny Limited, at Binnypet.

"We will develop Bangalore City Centre, a 7-lakh sq.ft shopping mall and the ETA Star Innovative Film City, a 5.5-lakh sq.ft villas and apartment complex in Bidadi near Bangalore.

In Chennai, ETA Star is mainly involved in development of commercial properties like shopping malls and IT parks, and the Jasmine Court marks its entry into the city's residential property market. This will be followed by 6.3 lakh sq.ft residential *** serviced apartment complex in Padur on the Old Mahabalipuram Road; an ultra premium apartment complex in Greenways Road, Chennai proper and 64 luxury villas spread over 17 acres at the junction of the Old Mahabalipuram Road and East Coast Road.

The company is developing a 27-lakh sq.ft IT park on the Old Mahabalipuram Road called ETA Techno Park. "The total project cost of Rs600 crore. We have completed 3 lakh sq.ft and has leased out to HCL Technologies. Another 3 lakh sq.ft is in the process of construction for the same client," Ismail said.

The company will also build a shopping mall at the site of the landmark Anand Theatre on the Anna Salai, Chennai, which will soon face the demolition squad.

The one notable shopping mall built by ETA Star in Chennai is the Chennai Citi Centre. However it has attracted the municipal authorities' attention for some deviations from the approved plans. "The deviation is very miniscule and in six months time it will be set right," asserts Ismail.

The company says ETA Star has real estate projects worth Rs1,100 coming up on 45 acres in Chennai. It also says that it has Rs2,000 crore worth of real estate development projects in other parts of the country.

In Mumbai, ETA Star has set up a 50:50 joint venture in partnership with Supra Estates to develop 10-lakh sq. ft, of which 7-lakh would be for residential and the remaining for a 3-lakh shopping mall in Juhu. The project will start in four months time. ETA Star is also involved in developing 63 acre near Mumbai. "The project will be developed into a health resort with a 5-star hotel, spa and other facilities," Ismail adds.

ETA Star's parent, ETA Star Property Developers LLC, Dubai, has launched over five-million sq.ft of premium properties in Dubai and the Northern Emirates. The company also has plans to develop another four-million sq. ft of commercial, residential and hospitality projects in Business Bay, Arabian Bay, International Media Production Zone, Dubai, Internet & Media City, a luxury resort & spa in the Jumeirah Palm Crescent in the Middle East.
Source: http://www.domain-b.com 13th April

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Luxury Retail Malls to Debut in India

Farooq M — Mon, 16 Apr 2007 10:59:00 GMT

This year will see international luxury brands like Gucci, Armani, Versace, Dolce & Gabbana etc. set shop in India, inside malls that will be exclusively catering to upscale, premium lifestyle brands. With 4-5 luxury malls coming up in India, a deluge of international lifestyle brands is set to descend upon the country this year. According to a recent survey, high net worth individual households in India stand at 1.6 million, growing at around 14-15% annually. And with the luxury market pegged at Rs. 64,000 crores, the going is only getting better. There are at least 5-7 urban micro markets in India for luxury retail, namely, South Mumbai, North Mumbai, South Delhi, Central/South Western Delhi, Chennai and Bangalore, and possibly one in Punjab (Ludhiana or Chandigarh). Cities like Mumbai and Delhi can absorb multiple centers for luxury retail, in order for the brands to be conveniently accessible to the large expanse of the populace. In another 4-6 years, Bangalore and Chennai are expected to follow the trend.

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Puravankara Group Launches "Purva Swan Lake" in Chennai's IT Corridor.

Property Reporter — Wed, 11 Apr 2007 09:25:00 GMT

Earmarks Rs. 1,000 crore for various schemes

Project to be executed in a phased manner

Has a JV with Keppel Land of Singapore

CHENNAI: Mumbai-based real estate developers Puravankara Group has earmarked Rs. 1,000 crore for various projects it proposes to take up in and around Chennai. The company had already disbursed Rs. 500 crore for its various on-going projects in Chennai.

Addressing a press conference here on Tuesday, Girish Puravankara, Deputy Managing Director, said the company was launching its residential project at the IT Corridor on the Old Mahabalipuram Road in Chennai.

The Rs. 300-crore project was being built on 11 acres. The construction would begin around May. The project would go on stream in about three years.

Mr. Puravankara said the new project, Purva Swan Lake, comprised 700 apartments. Each apartment would have two to three bedrooms with an area ranging between 1,250 sq. ft and Rs. 1,750 sq.ft. The price of these apartments would range between Rs. 3,400 and Rs. 3,800 per sq. ft. The project would be executed in a phased manner. In the first phase, nearly 30 per cent of the apartments would be ready for occupation, he added.

He said the company, which has been rated by Crisil as an outstanding developer and is ISO 9001 certified, had so far undertaken projects measuring 15 million sq. ft and was having projects for another 60 million sq. ft. Pura Swan Lake would be its first residential project in Chennai. The company had already taken up two commercial projects for IT companies in Chennai.

Mr. Puravankara said the company had a joint venture with Keppel Land of Singapore. Along with Keppel, the company was doing a few projects.
Source:The Hindu, Wednesday, Apr 11, 2007
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Appu Hotels Plans to Open 10 New Hotels across Tamil Nadu

Farooq M — Tue, 10 Apr 2007 07:03:00 GMT

Appu Hotels Ltd. that owns Le Royal Meridien, a five-star deluxe hotel in Chennai is planning to set up around 10 hotels across the Tamil Nadu in next three to four years. "Of the ten, two or three will be in the five-star category and the rest will be in the mid-priced (three or four-star) segment. According to Palani G. Periasamy, Chairman, Le Royal Meridien, the company will altogether open up in excess of 1,500 quality rooms in the State. He said, "As we want our hotels to be environment-friendly, most of our proposed projects would be greenfield, and in all, we are planning to invest Rs. 1,000 crores in the project.

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Acquired land is govt’s sole property: Supreme Court

Farooq M — Mon, 19 Mar 2007 08:28:00 GMT

NEW DELHI — Once a piece of land has been duly acquired by the government under the Land Acquisition Act, it becomes the sole property of the state, India’s apex court has held.

Even if the purpose of the acquisition no longer exists, the state can dispose of the same to anyone for the market value, a Bench of Justices C.K. Thakker and P.K. Balasubramanyan observed while upholding an appeal filed by the Tamil Nadu Housing Board.

The Bench passed the observations while setting aside the judgement of a Division Bench of the Madras High Court which ordered the Board to hand-over the land to some persons whose land was acquired for public purpose by the government. The high court had passed the orders on a batch of petitions filed by 43 people of Padi Village of Tamil Nadu’s Ambattur Taluk whose land was acquired by the Board in 1978 for construction of multi-storeyed apartments.

As 21 years after the acquisition, the building project did not come up, the 43 claimants made a representation to the government to hand-over the land but it was rejected, following which they moved the High Court. A Division Bench of the Madras High Court, however, without hearing the Board's view, ordered it to give the land to the claimants.

The Board filed a review petition before the High Court on the plea that it was not heard before the impugned order was passed, but the Bench dismissed the same following which an appeal was filed in the apex court.

In its appeal, the Board submitted that though there was delay in execution of the project, it had not abandoned the same as alleged by the claimants. The Board complained that the high court without giving it an opportunity to be heard, simply dismissed its two appeals. Agreeing with the contention, the apex court said the High Court ought to have issued notice to the Board before disposing of the petition.

The Supreme Court pointed out that the high court failed to take note of the Board’s pleadings that the project had not been abandoned or suspended and that the land acquired was very much needed for the implementation of the scheme.

Source: http://www.khaleejtimes.com

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