Search results matching tags 'real estate funds' and 'DLF'

DLF, Nitesh, HDFC vie for Beacon House

248075 — 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.

Telecom, The Next Big Thing In Real Estate

248075 — Fri, 19 Oct 2007 12:07:00 GMT

The uncertainty in the prices of property has made real estate companies to integrate into telecom. Developers want to tap the opportunities as telecom offers more revenue stability. Developers are lining up in droves to offer telecom services-or, more specifically, they are lining up to pick up licenses to do so. All the real estate biggies have put in approximately 500 applications for licenses to offer telecom services with the Department of Telecommunications (DoT). Companies that have applied for the license include DLF Ltd, unitech Ltd, Parsvnath Developers Ltd, Omaxe Ltd and Indiabulls Real estate Ltd. One of the most important reasons for this rush is that the real estate business has seen a slowdown in the past few months and telecom presents a lucrative business opportunity. According to Nitin A. Khandkar, senior vice-president, research, Keynote Capitals Ltd, Real estate companies are looking at the telecom business to de-risk their business. And to look in to the details of application, a committee has been formed by Communications and IT Minister, Mr. A. Raja. However, he has said the DoT will be selective in awarding telecom licenses.
Source: 12 Oct 07 livemint.com

DLF will Develop Rs.60,000 Crore 'New Bangalore' at Bidadi

233134 — Sat, 06 Oct 2007 14:20:00 GMT

The Karnataka government has awarded the 9,187-acre Bidadi Knowledge City, which will be positioned as New Bangalore, to the country’s largest realty firm DLF Ltd.

This project is three times the size of DLF City, the realty firm’s flagship integrated township in Gurgaon.

The project will entail an investment of over Rs 60,000 crore and will be developed in a 50:50 joint venture with the Dubai-headquartered Limitless Holdings, a sister company of Nakheel and a part of the diversified Dubai World group.

DLF and Nakheel already have a 50:50 joint venture for developing two townships of 20,000 acres each at Gurgaon and south Maharashtra at an initial investment of Rs 40,000 crore.

DLF will be sponsoring a $1-1.5 billion fund to finance the three townships it is developing with Nakheel. The company will sell a part of its equity in the townships to the fund.

The township will be based on the ‘walk-to-work’ ideology. It will comprise high-quality office space, residential developments, shopping malls, multiplexes, hotels and service apartments. Of the entire area of 9,178 acres, 6,000 acres can be developed by the realty firm.

The Knowledge City is located around 30 km from Bangalore and 15 km from Mysore, between NH-209 and Bangalore-Mysore Expressway, and will look to supplement the existing urban infrastructure of Bangalore.

The project is conveniently located on the Bangalore-Mysore railway line and has an additional advantage of being on the Southern Freight Corridor.

In addition to that, New Bangalore is approximately 30 km from the existing international airport and 60 km from the upcoming Bangalore International Airport, to which to which it will be connected by an expressway.

The city will also have a dedicated Metro Rail connectivity to Bangalore. DLF, however, is also planning to develop airports and metro stations within the township.Bidadi Knowledge City will also have shopping malls, multiplexes and hotels

The project was awarded to DLF, following a global tender issued by the Bangalore Metropolitan Regional Development Authority (BMRDA).
In all, 32 consortiums, formed by over 100 companies, had filed for the request for qualification (RFQ). DLF, however, had emerged as the sole bidder.

Realted News-DLF wins 12.5 Billion US Dollar Bangalore township order

DLF market cap touches Rs 1-trillion mark

248075 — Fri, 13 Jul 2007 11:41:00 GMT

MUMBAI: Realty stocks on the bourses rallied on Wednesday even as the market value of DLF Ltd, India's biggest real estate firm, crossed Rs one-trillion mark on hope RBI may not raise interest rates at a credit review later this month.

The scrip of billionaire K P Singh-led DLF, which listed on the bourses only on July 5, rose 3.27 per cent or Rs 18.70 on the Bombay Stock Exchange at Rs 590.45.

Its market cap jumped to Rs 1, 00,053 crore just before today's closing and settled at Rs 99,733 crore as compared to Rs 96,575 crore yesterday.

DLF scrip witnessed demand after reports that the company emerged as the front-runner for developing an integrated township project in Bangalore, market men said.

DLF's market value had crossed Rs one-trillion mark during intra-day trade on the listing day itself when the scrip surged to Rs 714 on BSE, but ended below the level.

Besides, most realty stocks jumped amid expectations that the central bank may not increase interest rates at its quarterly credit policy review later this month. HDFC Chairman Deepak Parekh also said yesterday rates have peaked and were unlikely to rise further.

Newly-launched realty index settled 3.38 per cent or 249 points up at 7,626.53 points as against 7,377.53 yesterday.

Shares of Unitech, the second-biggest realty firm, rose 3.06 per cent at Rs 542.20. Indiabulls Real Estate was biggest gainer as it soared 7.03 per cent to Rs 501.40 on the BSE.

Other realtors like Parsvnath rose 1.94 per cent to Rs 383.25, while Mahindra Gesco increased 1.49 per cent to Rs 558.20 and Sobha Developers 1.98 per cent to Rs 955. Of the 12 companies on the index, only one company - Anant Raj Industries - ended in the red with a loss of 0.29 per cent at Rs 1,290.

Source:Economic Times

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