In an interview with CNBC-TV18, Pradeep Jain, Chairman, Parsvnath Developers, speaks about the latest happenings in his company and sector.
Here is a verbatim transcript of the exclusive interview with Pradeep Jain on CNBC-TV18. Also watch the accompanying video.
Q: Real estate, the RBI seems reluctant to allow further restructuring of real estate loans to banks. How much of a distress could this move cause for real estate developers who had earlier restructured loans with the banks?
A: I understand, as an industry, most of the loans have been already restructured prior to June last year and now the cash situation of almost all the real estate company is fairly good. The financial institutions, PSU banks etc, they start lending the new money on project on project level.
More : moneycontrol.com
Naharpar’s first project Park Grandeura offered Possession
Naharpar area is one of the fastest growing area of Faridabad and would set an example for the years to come. Strategically located about 2-3 km from NH-2 (Delhi-Agra Highway) and 3 km from the proposed Taj Expressway, the area is well connected with Delhi on one hand and Noida-Greater Noida on the other. While the capital is facing a space crunch, Faridabad soon-to-be a satellite city is buzzing with multiple integrated and luxurious townships. At present, Faridabad is designated as a high potential territory in view of the light that it is one of the highest revenue generating zones of Haryana.
Investors and end users have already set their eyes on this virgin area, which is currently the hottest subject of all real estate talk. In Naharpar area, BPTP Parklands township is easily available at Rs.2000 -2200 per sq. ft. in comparision to Rs 3000 to 4000 per sq ft in Gurgaon and Noida. A feather in the Faridabad realty’s cap is BPTP flagship project PARKLANDS. The massive 1415.49 acres of integrated township “PARKLANDS” has started offering possession of their first group housing project, Park Grandeura offers 2, 3, 4 BHK apartments besides Penthouses. Strategically located in Sector 82, just 1.5 Km away from the NH-2 is fully equipped with all the modern amenities like 100% Power Back-up, a sports or Recreational Club, Swimming Pool, Round the clock security etc. The group housing complex has 15 towers with 768 apartments, spread over an area of 17.25 acres.
Parklands- is the only area in Faridabad fast coming up at the most posh Sector 14-15 of Faridabad, where the property rates are between Rs 50,000 to Rs 60,000 per sq. yds. Many of the known industrialists and business of Delhi and Faridabad are settled there.
More : i-newswire.com
Bill on digitisation of properties in Delhi soon
The archaic property registration system in the national capital is set to give way to a digitised and transparent mechanism with Delhi government finalising a draft bill for the purpose.
Delhi chief secretary Rakesh Mehta said the proposed system will ensure creation of a single, secure, electronic and efficient system under which all genuine owners of immovable properties will be given a unique identification number and title for their properties.
The draft Bill titled ‘Delhi Urban Property Registration and Titling Act’ has been finalised this week after wide ranging consultation with various stakeholders and experts.
More : dnaindia.com
Red Fort Cap invests Rs 200 cr in 3C project
Red Fort Capital, an India-focussed private equity (PE) firm, on Thursday announced a Rs 200-crore investment to pick up an undisclosed
stake in a residential housing project to be developed by Noida-based real estate firm, 3C Company. The funds will be used to develop around 3,500 apartments in the project, spread across 41 acres at Sector 110 in Noida.
ET was the first to report the news in its edition dated February 3. Although the exact stake picked by Red Fort Capital could not be ascertained, a senior executive in the real estate sector familiar with the development said the PE firm bought around 50% equity in the project.
The total investment in the project, ‘Lotus Panache’, scheduled to be completed by 2014, is estimated at Rs 2,400 crore. This is Red Fort Capital’s second investment in a residential project that is being developed by 3C Company. Last year, it had picked up a 50% stake in Lotus Boulevard project of 3C Company in Noida, where the total
More : economictimes.indiatimes.com
Red Fort to invest Rs 1k cr in 3C project
Red Fort Capital, an India-focused private equity (PE) firm which invests in the real estate sector, is picking up around 50% stake in a Rs 1,000-
crore residential project in Noida being developed by realty firm 3C Company, said two persons familiar with the matter.
Although the exact deal amount could not be independently verified, one of the persons familiar with the development said Red Fort Capital is investing around Rs 100-130 crore towards the equity capital of the special purpose vehicle that owns the project.
The investments will go towards developing 3,500-4,000 apartments in the project named Lotus Panache located at Sector 110 of Noida. The project is spread across 41 acres in Noida, said another person on condition of anonymity.
More : economictimes.indiatimes.com
Jaypee Greens Kensington Noida 9811194010
Jaypee Greens (A division of Jaiprakash Associates Limited - a well diversified infrastructural industrial conglomerate in India) has announced the launch of new set of apartments at Kensington Park. The residential plots in this phase had received an overwhelming response from the market and almost 1400 plots have been sold out.
Kensington Park will offer apartments in two types, viz., Kensington Park Apartments and Kensington Park Heights. The completion date of the project shall be 36 months from the date of booking. There are total 1600-1700 (approx) flats available in various sizes ranging from 1050 to 2025 sq ft and in 2, 3 and 4 BHK option.
Kensington Park apartments will comprise of 14 towers with 12 floors. Each floor will have 6 flats. These flats are being offered on an inaugural price of Rs 2790/- per sq ft.
More : bignews.biz
Jaypee Greens launches apartments at kensington Park
Jaypee Greens (A division of Jaiprakash Associates Limited - a well diversified infrastructural industrial conglomerate in India) has announced the launch of new set of apartments at Kensington Park. The residential plots in this phase had received an overwhelming response from the market and almost 1400 plots have been sold out.
Kensington Park will offer apartments in two types, viz., Kensington Park Apartments and Kensington Park Heights. The completion date of the project shall be 36 months from the date of booking. There are total 1600-1700 (approx) flats available in various sizes ranging from 1050 to 2025 sq ft and in 2, 3 and 4 BHK option.
Kensington Park apartments will comprise of 14 towers with 12 floors. Each floor will have 6 flats. These flats are being offered on an inaugural price of Rs 2790/- per sq ft.
More : indiainfoline.com
Bhushan Steel-Essel set to acquire plot for Rs 1,530 Cr
Land in Navi Mumbai to be used for building Bollywood theme park. In the largest ever property deal in over 18 months, Bhushan Steel and Subhash Chandra-promoted Essel Group are set to acquire a 250-acre plot in Kharghar (Navi Mumbai) for Rs 1,530 crore. The Bhushan Steel-led consortium beat nearly 100 other bidders to acquire the land from City and Industrial Development Corporation of Maharashtra (Cidco).
Indiabulls came in second with a bid of Rs 1,059 crore, while a consortium of GVK group and HCC came third with a bid of Rs 808 crore, according to sources involved with the transaction. Future City Properties, the company floated by Bhushan Steel and the Essel group, has proposed the development of a Bollywood theme park. Indiabulls and GVK-HCC had proposed knowledge and leisure-based theme parks, respectively.
When contacted, a Cidco official confirmed that the Bhushan Steel-led consortium had emerged as the highest bidder. “We have opened the bids today. The highest bid has to be cleared by legal authorities,” the official said. In the term sheet, 70 per cent weight had been assigned to the financial bid and the rest to technical parameters.
More : business-standard.com
Debt-ridden property dealer ends life in Noida
A 53-year-old property dealer Friday evening poured petrol on his body in an open ground, set himself ablaze and died on the spot, police said, suspecting he was under a heavy business debt that led him to end his life.
Raju Louis, a property commission agent, immolated himself in open ground around 7.30 pm near Sector-32 in Noida, according to Superintendent of Police Ashok Kumar Tripathi.
The man suffered 80 percent burns and died on the spot, Tripathi said.
Though the exact cause the extreme step was not known, police said Raju was under debt in property business.
Police found two mobile phones and a driving license near the body.
Copyright Indo Asian News
Source : littleabout.com
Home business in Beijing plummets in first two weeks of 2010
Property trading in Beijing in the first two weeks of this year slumped, following a string of government moves to curb soaring real estate prices.Beijing property transaction management authority said on its website Friday that sales of future delivery residential apartments during Jan. 1 to Jan. 13 were down 63.9 percent month on month to 3,031 units, compared with 8,397 units in the first half of December.Chinese home prices began to pick up from February last year, and hit a 18-month high in December.
The central government has taken a series of measures, including trimming loans, intensifying land supply and market monitoring, and ending tax rebates on property transaction, to prevent home prices from further soaring since the previous month..
Data from the National Bureau of Statistics (NBS) showed housing prices in the country’s 70 large and medium-sized cities rose 7.8 percent in December 2009 from a year earlier.
More : ftp.app.com.pk
Residential rental values to stay flat
Rental values in cities are driven by various factors such as access to transport links, quality of civic amenities such as water and power as well as facilities management. Proximity to retail and entertainment centres is another major draw. Residential rental values at most locations, according to industry players, are expected to remain stable with a possible strengthening towards the second half of 2010.
Shveta Jain, national head, marketing & investment, residential, Cushman & Wakefield India, says most of the projects which were launched in late 2005 to early 2007 are expected to come into supply during 2010 and would essentially be in the suburban and peripheral locations of the cities. The expected supply would create considerable options in the market, keeping rentals in check. Investors/individuals who invested in under-construction properties can look at renting out their properties now. Owners considering renting out properties within central or prime locations can expect a significant rental income as there is a robust demand for such properties,” she adds.
According to a Value Analysis Report by Brix Research, the research arm of magicbricks.com, Noida’s rental values escalation started three months prior to the commissioning of Delhi Metro line in the city in November 2009. The localities that are expected to witness a major rise in rental values include Sector-71, Sector-15, Sector-46, Sector-93 A, Sector-30, Sector-15 A and Sector-62.
More : economictimes.indiatimes.com
BPTP is a Delhi based real estate player headed by Kabul Chawla. It has projects in New Delhi, Gurgaon, Faridabad, Noida and Greater Noida.
Delhi-based realty player BPTP Ltd has planned to hit the capital market to raise funds through an Initial Public Offering (IPO) and has filed its Draft Red Herring Prospectus (DRHP) with SEBI. The Public Issue of equity shares of face value of Rs 10 each for a cash at a price band to be decided later aggregate to Rs 15000 million. The Book Running lead managers to the issue are IDFC – SSKI Ltd and JP Morgan Pvt. Ltd.
BPTP is a Delhi based real estate player headed by Kabul Chawla. It has projects in New Delhi, Gurgaon, Faridabad, Noida and Greater Noida. All facets and product categories of Real Estate, i.e. Condominiums, Plotted Development, Built – up Villas, Commercial Complexes, IT Parks and Shopping Malls are part of BPTP’s portfolio. Its gamut of forthcoming projects includes Parklands, the new age 1000 acre integrated township at Faridabad.
The company has appointed JP Morgan and IDFC SSKI as lead book running manager for the IPO.
More : sbwire.com
Koda crores laundered at SEZ
At a time when exports had hit a slump and many businesses had folded up, there were a few shining exceptions. One SEZ thrived in times of crisis. It is only now that the Enforcement Directorate has found that the balance sheets did not tell the real story. Investigation into the ‘Great Jharkhand Loot’, allegedly involving former CM Madhu Koda, has revealed a bigger scam at the Noida Special Economic Zone (NSEZ) concerning fictitious trade in gold and diamonds besides a land swindle. The scale of the scam runs into several thousand crores.
Sources said the SEZ in question had a turnover of around Rs 16,000 crore last year of which more than 62% of the trade, nearly Rs 10,000 crore, was in gold, platinum and diamonds, most of which had allegedly been imported from Dubai and re-exported to the same destination.
Investigators probing the case believe most of these dealings were done on paper only to facilitate banking transactions to launder money to Dubai and from there to a third country. The companies allegedly involved in the scam, which have now been barred from operating in bullion trade from the SEZ on suspicion of money laundering, allegedly belong to Sanjay Choudhary and other Koda aides and their business partner Manoj Punamia.
More : timesofindia.indiatimes.com
Harley to Sell Plant Property
The York County Industrial Development Authority has agreed to purchase and redevelop nearly 60 acres of land used for the Springettsbury Township Harley Davidson Plant.
The agreement became affective Monday after more than three months of negotiations.
We’re actually a partner with Harley in developing this, said John Krout, Chairman of the York County Industrial Development Authority. The hope is obviously to create jobs here in York and make up for the jobs that will be lost as a result of Harley changing how they are producing.
More : whptv.com
To nail tax evaders, govt offers MCD geographic survey details
The biggest municipality in South and Southeast Asia, the Municipal Corporation of Delhi (MCD), also is one of the poorest.
The reason: property tax collected this year comes from merely 20 per cent of existing property owners. Now, the civic body is planning to force tax evaders to pay up.
For this, the Delhi government has sent a proposal to the MCD to use Delhi State Spatial Data Infrastructure to increase its collection. The geo-spatial survey of Delhi reveals that though tax is collected only from eight lakh properties, more than 40 lakh properties exist in the city.
More : indianexpress.com
Global property sector M&A touched $152 bn in 2009: Dealogic
The global merger and acquisition activity in the property sector so far this year amounted to $151.8 billion (around Rs 7 lakh crore), the lowest
level in the last six years amid the economic downturn.
Global property sector M&A reached just $151.8 billion via 2,282 deals in 2009, down 34 per cent on 2008 volume, making it the lowest level since 2003,” deal tracking firm Dealogic said.
In the year 2003, the total deal activity in the property segment across the world amounted to $118 billion (Rs 5,48,700 crore) by way of 1,557 transactions.
More : conomictimes.indiatimes.com
Not just boring lists of property transactions
Property details furnished in returns by IAS officers are not merely a plain boring list of sale and purchase of various properties.
The most touching detail in the 600 pages of information gathered under the RTI Act by advocate HC Arora is the buying of a house in Sector 19, Chandigarh, by KBS Sidhu in the name of his wife. The house has been bought for “sentimental” reasons and her contribution to the whole deal, worth Rs 50 lakh, was less than Rs 101.
Sumer Singh Gurjar, former Deputy Commissioner of Ludhiana, also has an interesting story to tell. In June, 2004, he purchased some land in Rajasthan, which is now valued at Rs 3 lakh, from which his annual income is Rs 2 lakh. He bought some land in Ludhiana from which his annual income is just Rs 5,000. For purchasing these two pieces of land, the money had come as “gifts from family members and close relatives”, sources said.
More : tribuneindia.com
After dismal year, realty firms see ray of hope in 2010
After five years of robust growth till the middle of 2008, the $14 billion Indian realty industry faced a major crisis this year, not just because of a sharp fall in demand but due also to high cost of credit in executing ongoing projects.
The same set of realtors who were happy hiking the cost of both residential and commercial project three-four fold in the past years were forced to launch low-cost ventures and reduce prices.
Even the big players like DLF and Unitech had to mop up funds through qualified institutional placements to feed their cash-starved enterprises - most of it to retire old debts and fund new projects.
More : beta.thehindu.com
Real estate slowdown hits rly land development plan
The liquidity crunch in the real estate sector has hit Indian Railways’ efforts to lease out surplus land for commercial development on public-private partnership.
Last week, the Railway Land Development Authority (RLDA) cancelled the bidding process for developing a private residential complex at Sarai Rohilla in Delhi. A senior official at RLDA said, The developer at Sarai Rohilla was repeatedly deferring the date for making the upfront payment for the plot. We have decided to drop the tender for the project.
The site, spread over 11 hectares, had been offered last April for constructing a residential complex with facilities such as a shopping complex and health care centres. The reserve price had been set at Rs 675 crore.
More : business-standard.com
PE funds eye Indian rental market
The 30 to 40 per cent decline in property prices (from peak levels), coupled with firming interest rates have resulted in private equity (PE) funds eyeing investment opportunities in rental space.
A few fund houses have already begun seeking investment commitments from investors, indicating 16 per cent to 22 per cent as annualised portfolio returns.
PE funds investing in real estate rental space follow a simple investment strategy.
These funds are suited for investors who are risk-averse and prefer returns similar to those from fixed income schemes. According to PE industry officials, Milestone Capital Advisors, Xander Real Estate Partners, Indiareit Fund Advisors and an investment arm of Delhi-based real estate company DLF are planning to launch rental yield funds in India, reported Economic Times.
More : business24-7.ae