DLF is set to acquire DLF Asset Ltd (DAL), a property trust owned by its promoters KP Singh and family, for around Rs 10,000 crore as the country’s largest real estate firm looks to consolidate its commercial assets under one company.
The transaction will be executed through DLF Cyber City Ltd, a wholly-owned commercial assets subsidiary of DLF. DLF plans to list DAL on the Singapore Stock Exchange before March.
The equity value of the deal, which includes DAL’s Rs 7,300-crore debt, is around Rs 2,500 crore. Under the proposed deal, DLF Cyber City will acquire Caraf Ltd, an investment firm of KP Singh and family that owns DAL. After the deal, DAL will become a wholly-owned subsidiary of DLF Cyber City. Since this is a cashless transaction, DLF Cyber City will issue fresh shares to the promoter family.
More : economictimes.indiatimes.com
Real Estate sector booming
The future of the Indian property market is good, given our demographics in terms of a young population under 33, which will have varied housing needs as they progress in life. At present Banks interest rates are also low and instead of paying rent it is better to buy home and pay EMIs for your dream house. The entry of PE funds has benefited the real estate market tremendously as this brought in equity capital with increased risk appetite.
The commercial real estate market is also seeing revival, after months of stagnation. According to Dr Devinder Gupta CMD CENTURY 21 DGS, one of the largest brokerage houses, the Commercial and Residential properties of Delhi, Noida and Gurgoan show good improvement in market activity as compared to the 2nd quarter of 2009, because number of companies that had adopted a “wait and watch” strategy to take up space are now amenable to fresh real estate acquisitions.
Builders are also coming with affordable housing projects even well known developer DLF selling its Commercial Corporate Green NH-8 Gurgoan at affordable price Rs 5250/ sq ft, investors, end users are taking great interest in this project. NRIs are showing an interest in investing with well reputed builders where Bank loans are easily available.
More : centralchronicle.com
No takers for ‘affordable’ housing in NCR
It was touted as a realization of the ultimate middle class dream houses that fit the pocket. Just that it went bust. Months after developers flooded the market with housing projects tagged as ‘ affordable, there seem to be very few takers. The reason: the actual area of many of these flats is far less than usual. Others are being rejected because of poor location.
Said Renu Chaddha (name changed), who had bought a flat in an affordable housing project that was launched in Faridabad earlier this year, and is looking for another property to invest in. ‘At that time, only a few developers had launched their projects. All of them had good locations, so my husband and I decided to invest. It was only around Rs 20 lakh.’ Six months down the line, Chaddha says that the newlylaunched housing projects have left her without any inclination to buy.
The usual room specifications are 1200-1400 sq.ft. for a two bedroom flat. But most of the projects coming out now and being marketed as affordable housing measure between 800-1 ,000 sq.ft,’ admitted Pradeep Mishra of Sainik Estates, a local brokering firm.
More : economictimes.indiatimes.com
Trader duped of Rs 15 lakh by fake property dealer
Beware of property dealers who promise you deals at rates lower than the existing market rates. K N Aggarwal, a retired export businessman residing in Noida Sector 40, was duped of Rs 15 lakh by a property dealer who opened an account using a fake identity, encashed the cheque and vanished.
In his complaint lodged with the station house officer at Sector 39 police station on Tuesday, Aggarwal said Vikram Sharma, a property dealer whose office was in Noida Sector 62 promised him a flat at a rate that was Rs 200 less per sq m than the existing market rate. I confirmed with my relatives and realised that the deal was profitable, Aggarwal said.
Aggarwal paid Rs 5 lakh by cheque and Rs 10 lakh in cash. “Sharma told us the deal is valid only if we pay him Rs 15 lakh on the very day the deal was to be signed. We paid him the amount and signed the deal. After a month, when the cheque was cleared, we went to the Noida Authority for house registration. The officials there told us the house was registered in the name of Ramvati, a resident of Delhi, the victim said.
More : indianexpress.com
Ebix Announces its Focus on Singapore & India as Centers of Technology Excellence
Ebix, Inc. (NASDAQ: EBIX) a leading international supplier of On-Demand software and E-commerce services to the insurance industry, today announced that it has decided to further strengthen its operations in Singapore & India, towards centralizing the company’s worldwide software development and intellectual property rights in the region.
Ebix announced that it has strengthened its development operations further in India by purchasing another building in the Tax Free zone in Noida, India under the SEZ act of the Govt. of India. This new building will expand Ebixs development capacity to 620 developers in the SEZ area. Under the SEZ act of the Govt. of India, Ebix has received free status for 5 years till 2014-15 and 50% tax-free status for 5 years after that. The SEZ Company in India is a wholly owned subsidiary of Ebix Singapore.
The company also declared today that it is centralizing all its international accounting operations for all countries outside United States, in India. In addition, the company is also presently finishing an exercise to empower its Singapore Company as the Global headquarters for all intellectual property rights across the company. Ebix’sSingapore operations coupled with its subsidiary development and accounting operations in India, will result in the region becoming the center of excellence for the company, in terms of Ebix’s worldwide intellectual property rights and software development operations.
More : rttnews.com
Best time to invest in commercial property
Sunil Sharma was a very successful IT professional in the US where he had been working for over a decade. However, he has returned to India and is currently engaged in developing an advanced IT-ready commercial space with all concepts of sustainable building packed into the Advant Navis Business Park in Delhi NCR (Noida-Greater Noida Expressway). Contrary to current perceptions, he has been able to sell three floors of 30,000 sq ft each, within the last two months. He managed to do this simply because he read the writing on the wall — which was that the current round of buyers of commercial property are individuals keen to invest between Rs 50 lakh and Rs 1 crore in commercial property.
Sharma is not alone in wooing the individual buyer to purchase commercial property for the returns that they offer. Today, with a rental potential of Rs 45 per sq foot in the area, Sharma is confidently offering a return of 10-11 % to the consumer. This is in addition to the increase in capital values for a premium A-Grade building such as theirs. Eventually, he hopes to give his investors up to 13-14 % return. This, however, is estimated and not assured.
Source : economictimes.indiatimes.com
Hawala dealer from Indonesia and Koda’s CA key to probe
Indonesia-based hawala dealer Anil Vastawade and chartered accountant S K Naredi have emerged as key in the alleged money laundering case against Madhu Koda with investigators saying they were the main facilitators” for money transfers and property acquisitions by the former Jharkhand Chief Minister and his associates.
Officials in the Enforcement Directorate (ED) said that Vastawade — earlier based in Dubai — has been on their radar for several months. Two hawala dealers named in the case Arvind Vyas (already questioned) and Manoj Punamia (absconding) are known to have made huge transfers to Vastawade. Officials said they will soon request authorities in Indonesia to get Vastawade to join the investigation.
Sources said Naredi — questioned on November 2 — was instrumental in the arrest of key Koda associate Vikas Sinha who was questioned by the ED on Monday. During his interrogation, Naredi is said to have admitted that he servd as accountant for Koda and brothers Binod Sinha and Vikas Sinha. And that Rs 11.80 crore was the Sinhas’ “undisclosed income.
More : expressindia.com
AP plans integrated townships to provide affordable housing
Even as the Centre is bringing out a Real Estate Regulation Bill to usher in transparency and affordable housing, the Andhra Pradesh government has devised a model integrated townships plan to tide over the shortage of affordable housing in the state, state housing minister C Shilpa Mohan Reddy has said.
Disclosing this at a one-day seminar on Housing For All organised by the Confederation of Indian Industry (CII) here on Saturday, Reddy said that as part of this plan the state government was in the process of allotting 100 acres of land in each of the municipal corporations, 50 acres in each of the municipalities, and 10 acres in each mandal.
Apart from this, the state government is constructing 26,000 flats in and around Hyderabad and 50,000 flats across the state under its own `Rajiv Swagruha scheme, he added.
More : timesofindia.indiatimes.com
IDBI Bank unveils HOMES 2009
IDBI Bank launched a three-day exhibition on housing finance named “IDBI Bank HOMES 2009 Property Exhibition” at Noida Expo Center, Noida. This exhibition provides a home loan seeker a variety of options in terms of property across Delhi NCR. All big names in the real estate business are showcasing their upcoming projects in this exhibition.
Speaking at the inauguration of the Homes exhibition at Noida, Shri Yogesh Agarwal, Chairman & Managing Director, IDBI Bank Limited, said, “All applicants who evince interest in availing a home loan during this exhibition have the option of “book now pay later”. In addition, the Bank is offering special interest rates, spot sanctions and waiver of processing charges for all loans during the 3-day exhibition. This underscores the Bank’s endeavour to provide best-in-class products and services to all its clients".
Customers can avail loans at a fixed interest rate of 8.5 per cent per annum for ticket sizes up to Rs. 5 lakh and 9.25 per cent per annum for ticket sizes from Rs. 5 – 20 lakh. There are prizes galore at the exhibition on an hourly basis based on a lucky draw. In addition, a grand prize would also be given to a lucky winner amongst loan customers.
More : business-standard.com
Koda man almost got SEZ in Noida
There is no end to the story of financial profligacy of the former Jharkhand chief minister Madhu Koda. Income tax officials have found documentary evidence that reveal that a Koda frontman was negotiating to acquire a SEZ in Noida.
The documents seized by officials reveal that Manoj Punamiya, who was acting on behalf of Koda associate Binod Sinha, was in advance stages of negotiation for a SEZ in Noida. Punamiya’s involvement in the illegal transaction had earlier figured in a hawala transfer of Rs 500 crore ($100 million) to one Abdul bhai in Dubai. Documentary evidence had been seized by IT officials during last weekend raid of Punamiya’s premises in Mumbai.
Meanwhile, complaints of ill health proved to be little protection for the former Jharkhand CM. On Wednesday, IT and enforcement directorate officials also questioned Mr Koda as and when allowed by the doctors. The enforcement directorate also served summons to the former chief minister to appear before them for questioning on November 11 and 12.
More : economictimes.indiatimes.com
Noida property bubble goes bust
Affordable houses, closeness to the national capital and the tag of being Uttar Pradesh’s showpiece city has drawn thousands of settlers to Noida in recent years. But residents who have bought houses in the booming township at prices many times less than they would have paid in Delhi now feel they may not have landed a good deal after all.
The piped water supplied to houses in Noida is hard, saline and laced with chemicals such as calcium and magnesium. Dissolved impurities in water here are up to four times more than the levels prescribed by the World Health Organisation.
In most areas, the water is so saline that it leaves bathroom and kitchen fittings damaged, iron pipes corroded and clothes discoloured, rendering it unfit for not just drinking but nearly every purpose.
More : indiatoday.intoday.in
Declare assets on apex courts website
The judges of the Supreme Court on Sunday made public their assets putting out information regarding the landed wealth, shares and investments, jewellery, and other liabilities on the Supreme Courts official website.
It took two years for the judges to shed their secrecy regarding their assets after they consistently took a plea that disclosing such information in the open could be misused against them. But the Central Information Commission (CIC) order on January 6 followed by the Delhi High Court judgement on September 2 trashed the Supreme Courts objections paving way for the Supreme Court Full Bench to unanimously decide on August 28 to make the details of their assets public on its website.
While Justice HS Bedi has not put out details of his assets, the list containing Chief Justice of India KG Balakrishnan, along with 20 other judges of the Supreme Court, has a surprise inclusion. Justice BN Agrawal who retired on October 15 this year made a special request to make public his family assets.
More : dailypioneer.com
Elecon forays into hospitality sector
The Rs.1,500-crore engineering major Elecon group Monday made its foray into the hospitality sector with the launch of its resort, Madhubhan Resorts and Spa, in Charotar of Gujarat’s Anand district.
The 81-room property, located between Ahmedabad and Anand, possesses all facilities that go with a five-star deluxe resort, the company said.
The property comes equipped with an array of amenities such as a spa, swimming pools, restaurants, shopping arcade, kids zone, amphi-theatre, said Prayasvin Patel, chairman and managing director of the Elecon Group.
He added that the company would invest Rs.375 crore during the second phase development of the project.
These would include a sports club, a golf course and service apartments, he added.
Source : blog.taragana.com
Recovery in realty mart: Will it last?
While there are visible signs of a recovery in the real estate market, price hikes by developers and any increase in interest rates could halt this momentum, writes Ram Prasad Sahu.
The realty sector, which was the worst affected by the downturn last year, seems to be exhibiting early signs of a recovery.
Price cuts on projects over the last six months and healthy pre-sales during the festive season seems to suggest that demand, which had all but disappeared in the third and fourth quarter of 2008-09, seems to be trickling back.
Developers are tweaking their business model by launching smaller apartment sizes and playing the volume game to keep prices low and create buyer interest.
More : business.rediff.com
Realty builds on affordable homes
Ekam and Roma Bansal’s (names changed on request) dream of owning a home came true last month when they booked a 12th-floor two-bedroom apartment on the Greater Noida Expressway, near Delhi. They will be paying about Rs 30 lakh, of which some Rs 20 lakh will financed by a loan.
The Bansals are thanking their stars that they failed to seal a deal in the past two years they were looking to buy an apartment. Prices in the National Capital Region (NCR) are currently down a third from their peak at the end of 2007 and the slowdown has forced property developers to drop prices and build cheaper, compact homes that fit the budget of those such as the Bansals. Their builder Unitech was down in the dumps earlier this year as real estate prices crashed and buyers disappeared. The company is now patting itself on the back after deciding to launch so-called affordable homes, the relatively lower-priced apartments that are attracting buyers such as the Bansals.
Unitech says it sold 8.16 million sq ft of residential space between March and September out of a total of 10.11 million sq ft, helping it post revenues of Rs 3,913 crore that are higher than in the boom years of 2006 and 2007. And all the apartments it sold were in the affordable category, costing less than Rs 30 lakh apiece.
More : economictimes.indiatimes.com
Corporate space: It is time to bounce back
Call it the domino effect - after residential property market got into a recovery mode, the nation’s commercial property segment has also started showing signs of revival, driven by a spurt in office space and retail sectors.
Neeraj Bansal, associate director (advisory services) at KPMG, says, “Commercial real estate transactions, considered a key indicator of economic activity, are now showing some signs of movement in the real estate sector since the end of the 2nd quarter. The confidence and sentiment, relatively low in the first quarter of 2009, has improved after the formation of a new government, thereby contributing to the movement in the commercial sector.
Among positive signs, lease rentals both in peripheral areas as well as the central business district (CBD), are showing early signs of settling down and ‘conversions’ have begun to happen . There has also been a rise in demand for less costly premises in the sub-markets and landlords have been forced to increase incentives to draw tenants in the past few months. But more than anything else, the revival this time is being witnessed largely in the office space and retail sectors.
More : economictimes.indiatimes.com
Choice Hotels India launches two properties in Delhi NCR
Choice Hotels India (CHI), part of Choice Hotels International, with over 5000 hotels across the globe, recently launched two properties in Delhi NCR namely Quality Inn Bliss in Gurgaon and Quality Hotel Sewa Grand in Faridabad.
Quality Inn Bliss, located in Gurgaon, offers 39 guestrooms. It has a multi-cuisine restaurant, Fusion; lounge bar Celsius; board room known as Viceroy to conduct meetings and Ritz I & II, fully equipped banquet and conference halls.
Quality Hotel Sewa Grand Faridabad, located on Mathura Road offers 82 rooms and suites. The hotel has an all day dining multi-cuisine restaurant Cafe Pacific; Atlantis Bar banquet and conference hall Royal Ball Room and Senate, which can accommodate up to 350 guests.
Vilas Pawar, CEO, Choice Hotels India said, We now have four properties in Delhi NCR. We are also coming up with 160 rooms property named Clarion in Greater Noida, to be operational by next year. In addition to this, CHI has also signed one more property under Sleep Inn brand in Delhi.
Source : travelbizmonitor.com/
Unitech claims sales of Rs 4,000 cr between March and Sept
Unitech Ltd on Tuesday claimed it has notched up sales of 10.11 million sq.ft of residential and non-residential space between March and September, with a value of Rs 4,000 crore.
In a detailed investor presentation, India’s second largest real estate company said it is working on delivery of projects by March 2011.
The company had last week faced customer ire over delay in completion of Unitech Habitat at Greater Noida.
More : thehindubusinessline.com
Change in gift tax norms will affect both donor, donee
You have a property worth Rs 1 crore. But you run into rough weather and desperately need money for a business venture. You find someone
who’s willing to give you cash to tide over the bad times. Even if the money is less than the circle rates fixed for that property, you are willing to ‘gift’ it to your saviour through a gift deed, with the stamp duty paid on circle rates.
Well, not anymore. The change in gift tax norms (Section 56) now mandates that property gifted to non-family members is subject to taxation and the value of the property computed at fixed circle rates becomes income for the year, on which income tax has to be paid. It stipulates that any money received in the form of immovable property as land or building shall be treated as income. Earlier, any money received from a non-relative, above Rs 50,000, was subject to gift tax. However, property was excluded from this purview.
Ajit Krishnan, partner, tax and real estate practice, Ernst & Young, says that consequent to the amendment, the income-tax law shall come as a double-edged sword attacking the donor as well as donee of the immovable property.
More : economictimes.indiatimes.com
Land owner can’t be deprived of property arbitarily: SC
Irate buyers of homes from Unitech, the country’s second-largest real estate developer, today threatened legal action against the company for failure to complete construction within the promised schedule.
Buyers of homes in the under-construction Unitech Habitat in Greater Noida have come together under the banner of the Unitech Habitat Owners Association. In a protest meeting today at the Unitech sales office in Gurgaon, they demanded refund of the money they’d paid, with 18 per cent interest.
Most of the protesting buyers Business Standard spoke to claim to have paid up to 90 per cent of the amount due, though the construction of homes which were to be handed over in June 2009 is not even half completed.
More : business-standard.com