Citigroup's real estate arm is set to invest around Rs 400 crore ($100 million) in Bangalore-headquartered Golden Gate Properties for about 10% stake, sources said. The deal is expected to value the tier-II real estate firm at a little over $1 billion. This marks Citigroup's back-to-back deals in the domestic real estate space in the last fortnight. Early last week, the global financial giant unveiled $160 million play in Delhi-based BPTP.
Golden Gate is primarily into residential market with about 20,000 units under development totaling 23 million sq ft across southern cities such as Bangalore, Chennai and Hyderabad. The company also has substantial land holdings extending into emerging centres like Mysore and Mangalore. Besides, Golden Gate is believed to be foraying into SEZ and mixed use development.
In January this year, Deutche Bank investment unit RREEF closed $70 million transaction picking up under 10% stake in the company. The private equity juggernaut is now increasingly open to investing in tier-II or even in start-up realty firms, as the sectoral transparency issues are clearing up to an extent.
Citi's fresh investments are coming in when it was expected that the largest banking group in the US, reeling under $18 billion write-offs due to the subprime crisis, may go slow in ploughing more money into the realty sector in India. Several global banks have booked massive losses as the financial crisis that kicked in with the meltdown in the US housing market gained speed in the last two quarters. However, more realty firms are now opening up to private equity as their fund raising plans in the capital markets have run into trouble. For instance, several firms, including the biggest domestic player DLF, have been eyeing REIT listing on the Singapore Exchange, but are forced to delay the plan in the wake of market turbulence.
Friday, April 18, 2008
Wednesday, April 16, 2008
GROWTH OF INDUSTRIAL RENT HIGHEST IN MUMBAI
Mumbai has witnessed the world's highest (94.4%) increase in rentals of industrial space in 2007 from Rs 18 per sq ft per month to Rs 35 per sq ft per month ($10.88 per sq ft per annum). With this, the financial capital of the country leaped 11 positions to be 26th most expensive industrial locations in the world, said a global report on industrial space by real estate consultancy firm Cushman and Wakefield.
The rise in rentals of industrial space at Ranjangaon in Pune and IMT Manesar in the National Capital Region is fourth and sixth highest in the world. In Ranjangaon, the rentals went up from Rs 12 per sq ft per month in December 2006 to Rs 18 per sq ft per month in December 2007. In IMT Manesar, the rentals went up by 30% to Rs 13 per sq ft per month from Rs 10 per sq. per month. Rentals in prime area like Delhi's Okhala Industrial Area also went up by 28.57% to Rs 45 per sq ft per month from Rs 35 per sq ft per month ($14 per sq ft per annum).
Rentals in other areas in India have also gone up sharply. According to the report, rentals of industrial space in Hinjewadi in Pune has gone up by 18.75% to Rs 38 per sq ft per month, in Sriperumbudur in Chennai by 18.5% to Rs 32 per sq ft per month.
Within Asia-Pacific, Singapore came at third after Mumbai and IMT Manesar in annual rent growth and was followed by Pune and Chennai in the top five.
Bangalore-Bommasandra area came at sixth, while Bangalore-Jigani saw the ninth biggest rental rise in the region.
London retained its title as the world's most expensive industrial location in the world with total occupancy cost at $28.91 per sq ft per annum followed by Dublin, which jumped two places in the global ranking of occupancy costs to second place and Tokyo at third place. Occupancy cost in Dublin is $ 21.81 per sq ft per annum and in Tokyo $ 19.51 per sq ft per annum.
Okhala Industrial Area, with occupancy cost of $14.50 per sq ft per annum, is costlier than industrial space in Moscow, Frankfurt, Hong Kong and Beijing. The occupancy cost in Beijing is $ 7.31 pr sq. ft per annum
The rise in rentals of industrial space at Ranjangaon in Pune and IMT Manesar in the National Capital Region is fourth and sixth highest in the world. In Ranjangaon, the rentals went up from Rs 12 per sq ft per month in December 2006 to Rs 18 per sq ft per month in December 2007. In IMT Manesar, the rentals went up by 30% to Rs 13 per sq ft per month from Rs 10 per sq. per month. Rentals in prime area like Delhi's Okhala Industrial Area also went up by 28.57% to Rs 45 per sq ft per month from Rs 35 per sq ft per month ($14 per sq ft per annum).
Rentals in other areas in India have also gone up sharply. According to the report, rentals of industrial space in Hinjewadi in Pune has gone up by 18.75% to Rs 38 per sq ft per month, in Sriperumbudur in Chennai by 18.5% to Rs 32 per sq ft per month.
Within Asia-Pacific, Singapore came at third after Mumbai and IMT Manesar in annual rent growth and was followed by Pune and Chennai in the top five.
Bangalore-Bommasandra area came at sixth, while Bangalore-Jigani saw the ninth biggest rental rise in the region.
London retained its title as the world's most expensive industrial location in the world with total occupancy cost at $28.91 per sq ft per annum followed by Dublin, which jumped two places in the global ranking of occupancy costs to second place and Tokyo at third place. Occupancy cost in Dublin is $ 21.81 per sq ft per annum and in Tokyo $ 19.51 per sq ft per annum.
Okhala Industrial Area, with occupancy cost of $14.50 per sq ft per annum, is costlier than industrial space in Moscow, Frankfurt, Hong Kong and Beijing. The occupancy cost in Beijing is $ 7.31 pr sq. ft per annum
Tuesday, April 15, 2008
LODHA LAUNCHES LUXURY RESIDENCES
While there is talk of a demand crunch hitting the real estate industry developers still see prospects ahead, men for luxury Projects. Mumbai-based developer Lodha Group has launched luxury residences branded Lodha Marina at Mumbai's harbour zone of Sewri. With close proximity to Worli, Prabhadovi and Lower Parel, easy connectivity to 'Nariman Point, and Bandra-Kurla Complex business districts, Lodha Marina is positioned at the higher and of the market.
UNITY BAGS TWO ORDERS WORTH RS.221
Unity Infra-projects Limited has bugged Live orders worth Rs 221.85 Crore to build a mall-hotel-multiplex project at Pune for Vamona Developers Pvt. Ltd. at an estimated value of Rs 133.89 crure. In Hyderabad, Unity is building five towers with a basement and a podium at Kondapur for Kondapur Tower Pvt Ltd. The contract is worth about Rs 88.26 Crore.
HIRCO\'S CHENNAI PROJECT REPORTS ROBUST REVENUES
Hirco PLC, the investment vehicle of Mumbai-based Hiranandani Developers, has announced that sales of residential units in Phase 1 of its Hiranandoni Palace Gardens township development in Chennai continue to be robust both in terms of volume of units sold and the level of pricing achieved. As of March 31, sales revenues have been received on proximately 15.62.820 square feet at on overage price of RS 3,906 per square foot.
Monday, April 14, 2008
OMAXE INCREASES AD BUDGET TO RS 100 CRORE
Relieving its budget allocation for the financial year 2008-UH Delhi-based realty player Omaxe Ltd. has outlined its new budget amount for the New Year. The developer plans to push up its ad spend to Rs 100 crore from Rs 80 crore. Hath print and electronic media will be covered by the budget, which could be aimed at boosting demand amid a period of correction in the industry and inflationary pressures in the economy
CLERIDGS HOTELS
Cleridges will construct 1500 New Rooms at a cost of Rs.200 crore Group CONDERING TO OPEN HOTELS AT SEVEN PLACES with the entry into foreign markets and planning to expand in few cities of the country, cleridges Hotel Pvt. Ltd. will ad 1500 new rooms in its Hotel by investing Rs 1200 crore within next five years. Cleridges Hotel MD and CEO Peter J.Letgrb told the correspondent here "for investing in property we have a capital of 30 crore dollars. We are planning to open hotels at seven places so that the number of rooms may become from 1000 to 1500.
Letgeb said that for expansion of market, company is considering all types of alternatives. It includes organic and inorganic methods, shares, long term agreement for expansion etc. however, the company is not in favour of giving franchisee. He told that where the company is planning to open hotels in the country includes Hyderabad, Chennai, udaipur, Pune, and Keral. Letgeb said "we are in search of important areas in India and neighboring countries where hotels can be constructed." He said that company is at present talking to the parties of Chennai and udaipur respectively for opening the resort and business hotels. The company is going to open premium business hotel in Pune.
With regard to open hotels abroad, he said that company is planning to open hotels in Maldives and Middle East. In Maldives Company will construct a resort whereas a hotel consisting of 140 rooms will be constructed in Meddle East. On query about hotel place in Arabian countries Letgeb told that hotel can opened around Saudi Arabia and company is also talking to builders for it" cleridges is getting constructed hotels at three places in India which includes New Delhi, NCR and Mussoorie. This Delhi based company is constructing two hotels in Surajkund and Mumbai which will be opend by 2008 and 2010 respectively. The Cleridges Group told that company's income during 2007-2008 has reached Rs.90 crore with a profit of 40%
Letgeb said that for expansion of market, company is considering all types of alternatives. It includes organic and inorganic methods, shares, long term agreement for expansion etc. however, the company is not in favour of giving franchisee. He told that where the company is planning to open hotels in the country includes Hyderabad, Chennai, udaipur, Pune, and Keral. Letgeb said "we are in search of important areas in India and neighboring countries where hotels can be constructed." He said that company is at present talking to the parties of Chennai and udaipur respectively for opening the resort and business hotels. The company is going to open premium business hotel in Pune.
With regard to open hotels abroad, he said that company is planning to open hotels in Maldives and Middle East. In Maldives Company will construct a resort whereas a hotel consisting of 140 rooms will be constructed in Meddle East. On query about hotel place in Arabian countries Letgeb told that hotel can opened around Saudi Arabia and company is also talking to builders for it" cleridges is getting constructed hotels at three places in India which includes New Delhi, NCR and Mussoorie. This Delhi based company is constructing two hotels in Surajkund and Mumbai which will be opend by 2008 and 2010 respectively. The Cleridges Group told that company's income during 2007-2008 has reached Rs.90 crore with a profit of 40%
Sunday, April 13, 2008
SKY-HIGH PROPERTY PRICES
PROPERTY PRICES have shot through the roof on MG Road.
For two small shops of 6000 square feet each, shopkeepers now pay something between Rs 1.5 and Rs 2 lakh per month. According to the tenants, there has been an increase of 10-15 percent in the property rates here once the Metro line is ready; landlords say property pries will rise further.
“We did not get any rents for about two years. Now that desealing has taken place, it is natural that property prices are going up,” said Vijender Kumar Lohia. But the landlords are also worried about the future.
“What if the shops are sealed again? May be this is a temporary sop in an election year (Delhi Assembly elections are due later this year), “said Lohia.
Some shopkeepers still prefer to pay the increased rents then shifts from MG Road. “I have invested lakhs in furnishing this showroom and if I have to remove all this, my investment would go waste,” said Deepankar Chaudhary, who runs a shop selling carpets.
Many have hiked the prices of good to cover the high rent.
For two small shops of 6000 square feet each, shopkeepers now pay something between Rs 1.5 and Rs 2 lakh per month. According to the tenants, there has been an increase of 10-15 percent in the property rates here once the Metro line is ready; landlords say property pries will rise further.
“We did not get any rents for about two years. Now that desealing has taken place, it is natural that property prices are going up,” said Vijender Kumar Lohia. But the landlords are also worried about the future.
“What if the shops are sealed again? May be this is a temporary sop in an election year (Delhi Assembly elections are due later this year), “said Lohia.
Some shopkeepers still prefer to pay the increased rents then shifts from MG Road. “I have invested lakhs in furnishing this showroom and if I have to remove all this, my investment would go waste,” said Deepankar Chaudhary, who runs a shop selling carpets.
Many have hiked the prices of good to cover the high rent.
Saturday, April 12, 2008
LEHMAN BUYS 40% IN IT PARK
Global investor Lehman Brother has picked up a 40 per cent stake in the upcoming IT Park project of property developer Peninsula Land (PLL) in Hyderabad. Lehman is expected to hold the remaining 50 crore into the project. PLL is expected to hold the remaining 60 per cent.
The initial cost of the project, including land, is Rs 125 crore and the development cost is nearly Rs 1,400 crore. The company is planning to fund the project through debt and draw more funds from Lehman if required, sources said.
The initial cost of the project, including land, is Rs 125 crore and the development cost is nearly Rs 1,400 crore. The company is planning to fund the project through debt and draw more funds from Lehman if required, sources said.
Friday, April 11, 2008
CITI ARM PLANS $160M BPTP INVESTMENT
Hong Kong-based Citi Property Investment, the real estate investment arm of Citibank, is investing $160 million (Rs 650 crore) in Delhi based realty major BPTP to develop four special economic zones in Noida, Greater Noida, Faridabad and Gurgaon, BPTP sources said.
According to sources, a special purpose vehicle has been formed for the purpose. Citi Property Investment holds 40 per cent in the SPV, while the remaining 60 per cent is with BPTP. However, this is not Citi Property Investment's first investment in BPTP. In 2007, the Citi arm picked up 5.89 per cent in the company for Rs 322.50 crore.
BPTP has been in the news recently for bagging the country's largest land deal worth Rs 5006 crore to develop commercial projects over 94 acres in Noida.
The four InfoTech SEZs developed by BPTP total up to 206 acres. The company plans to develop six million sq ft. of area, out of a total area of 20 million sq ft in the first phase. "The investment by Citi Property Investment shows the tremendous goodwill and investor confidence that the company has earned in the market in such a short time," a BPTP executive said
According to sources, a special purpose vehicle has been formed for the purpose. Citi Property Investment holds 40 per cent in the SPV, while the remaining 60 per cent is with BPTP. However, this is not Citi Property Investment's first investment in BPTP. In 2007, the Citi arm picked up 5.89 per cent in the company for Rs 322.50 crore.
BPTP has been in the news recently for bagging the country's largest land deal worth Rs 5006 crore to develop commercial projects over 94 acres in Noida.
The four InfoTech SEZs developed by BPTP total up to 206 acres. The company plans to develop six million sq ft. of area, out of a total area of 20 million sq ft in the first phase. "The investment by Citi Property Investment shows the tremendous goodwill and investor confidence that the company has earned in the market in such a short time," a BPTP executive said
Monday, April 7, 2008
APARTMENT COMPLEXES ARE MUSHROOMING IN KOLKATA
The tastes and preferences of a Kolkatan are changing fast. Ten years ago, an apartment in the city was something that they would die for. Today; a discerning customer is looking for what he will get other than the space trapped between four walls.
Customers now prefer 'self-sufficient' housing complexes rather than stand-alone apartments in the heart of the city As a consequence housing complexes are now mushrooming all around the city and have turned barren land into prime locations. 'Ideal villas' of Rajarhat, Kolkata West, Uniworld City, and Calcutta Riverside are all examples of the above.
These projects, in addition to sprawling flats or bungalows, are set in the lap of nature and provide the best in entertainment and civic facilities. As Pradeep Sureka, Chairman, CREDAI Bengal, says, "Location is not the prime concern any more. Inside the city it is congested and prices are hitting the roof. In addition to location, people are today looking at features these 'townships' offer namely large open spaces, an economical approach and professional management."
According to Sureka, these 'self sufficient' housing complexes have become a numero uno choice for customers because of the range in prices and the facilities they comes bundled with. "The more people stay in a complex, the more facilities they offer. That is exactly why a large housing complex is always economical both for the developer and the customer," Sureka adds.
It is but natural that most of these complexes are coming up on the outskirts of the city that is already reeling under a severe space crunch. Take for instance, the Aponaloy housing complex in Madhyamgram. Set amidst undulating green lawns, it has facilities such as a gymnasium, auditorium and plenty of space for children to play the popularity of these housing complexes stems for the fact that they promise "lifestyles on offer."
Rajat Ghosh, an IT professional who recently bought an apartment in Rajarhat, states, "The primary reason I opted for my flat outside Kolkata was because I wanted to move away from the din of the city. Besides, purchasing a flat here proved to be cheaper for me than it would be in the heart of Kolkata," points out Ghosh.
Customers now prefer 'self-sufficient' housing complexes rather than stand-alone apartments in the heart of the city As a consequence housing complexes are now mushrooming all around the city and have turned barren land into prime locations. 'Ideal villas' of Rajarhat, Kolkata West, Uniworld City, and Calcutta Riverside are all examples of the above.
These projects, in addition to sprawling flats or bungalows, are set in the lap of nature and provide the best in entertainment and civic facilities. As Pradeep Sureka, Chairman, CREDAI Bengal, says, "Location is not the prime concern any more. Inside the city it is congested and prices are hitting the roof. In addition to location, people are today looking at features these 'townships' offer namely large open spaces, an economical approach and professional management."
According to Sureka, these 'self sufficient' housing complexes have become a numero uno choice for customers because of the range in prices and the facilities they comes bundled with. "The more people stay in a complex, the more facilities they offer. That is exactly why a large housing complex is always economical both for the developer and the customer," Sureka adds.
It is but natural that most of these complexes are coming up on the outskirts of the city that is already reeling under a severe space crunch. Take for instance, the Aponaloy housing complex in Madhyamgram. Set amidst undulating green lawns, it has facilities such as a gymnasium, auditorium and plenty of space for children to play the popularity of these housing complexes stems for the fact that they promise "lifestyles on offer."
Rajat Ghosh, an IT professional who recently bought an apartment in Rajarhat, states, "The primary reason I opted for my flat outside Kolkata was because I wanted to move away from the din of the city. Besides, purchasing a flat here proved to be cheaper for me than it would be in the heart of Kolkata," points out Ghosh.
Sunday, April 6, 2008
UNION BANK LAUNCHES REVERSE MORTGAGE PLAN
Pune: Union Bank of India on Friday launched its reverse mortgage scheme for senior citizens. The scheme will enable senior citizens to obtain a monthly payment by mortgaging their residential property. Under the title “Union Reverse Mortgage Scheme”, the bank will offer benefits to people aged above 60 years. The loan drawn against mortgaged property will have fixed interest rate of 10 per cent per annum. The same will be revised after every five years.
Courtesy: Busi. Standard April 7, 2008
Courtesy: Busi. Standard April 7, 2008
Friday, April 4, 2008
PARSVNATH INAUGURATES LUXUARY TOWNSHIP PRIDE ASIA
Delhi's real estate firms Parsvnath Developers Ltd. (PDL) have announced inauguration of their 123 acre luxury township Pride Asia in Changiarh. This project is being developed by PDL in association with Chandigarh Housing Board.
Company has claimed that after a period of three years, the actual cost of this project will become 10 crore dollars. This project is situated in gorgeous environment between Sukhna Lake, Golf Course and an under construction Five Star Hotel having Shivalik Hills behind it. It has 38.5 lac sq.ft. Residential and 2.7 lac sq.ft. Commercial saleable area.
Pride Asia is a part of Rajiv Gandhi Chandigarh Technology Park itself. And it will provide a consolidated infrastructure to setup IT Company’s campus and other facilities PDL chairman Pradeep Jain said "Chandigarh is becoming a hot destination for IT companies and policies of the administration there are also congenial. This is going to be proved a mile stone for us." Pride Asia will consist one BHK to 5BHK air conditioned apartments and its price will be Rs 52 lac to Rs. 3.8 crores. It will also consist high price villas whose price will be Rs. 6.00 crore each or more. It will also consist specially constructed service apartments and luxury club. In addition, games premises and wellness facilities will also be spread in an area of 6 acre
Company has claimed that after a period of three years, the actual cost of this project will become 10 crore dollars. This project is situated in gorgeous environment between Sukhna Lake, Golf Course and an under construction Five Star Hotel having Shivalik Hills behind it. It has 38.5 lac sq.ft. Residential and 2.7 lac sq.ft. Commercial saleable area.
Pride Asia is a part of Rajiv Gandhi Chandigarh Technology Park itself. And it will provide a consolidated infrastructure to setup IT Company’s campus and other facilities PDL chairman Pradeep Jain said "Chandigarh is becoming a hot destination for IT companies and policies of the administration there are also congenial. This is going to be proved a mile stone for us." Pride Asia will consist one BHK to 5BHK air conditioned apartments and its price will be Rs 52 lac to Rs. 3.8 crores. It will also consist high price villas whose price will be Rs. 6.00 crore each or more. It will also consist specially constructed service apartments and luxury club. In addition, games premises and wellness facilities will also be spread in an area of 6 acre
YATRA CAPITAL INVESTS IN TWO PROJECTS IN BANGLORE
ANNOUNCING ITS 10th and 11th investment in Indian real estate sector, European fund Yatra Capital has invested 28 million euros in two new joint venture projects in Banglore.
The venture fund has million euros in palladium Constructions Pvt. Ltd, for a 30 per cent stake in a mixed- use development and 10.15 million euros in Platinum Hospitality Services Pvt. Ltd for a 30 per cent stake in a hospitality project. Yatra’s joint venture partner in both developments is The Phoenix Mills Ltd.
With these investments, Yatra has so far committed 146.34 million euros of the 220 million euros of the capital raised.
Courtesy HT---31March 2008
The venture fund has million euros in palladium Constructions Pvt. Ltd, for a 30 per cent stake in a mixed- use development and 10.15 million euros in Platinum Hospitality Services Pvt. Ltd for a 30 per cent stake in a hospitality project. Yatra’s joint venture partner in both developments is The Phoenix Mills Ltd.
With these investments, Yatra has so far committed 146.34 million euros of the 220 million euros of the capital raised.
Courtesy HT---31March 2008
FIRST- HAND PROPERTY ON EASIER TERMS
Buying a newly built home? You could consider purchasing property up to for re- sale in the secondary market. You could get early possession and even a cheaper deal than offered by developers in new project.
The trend will continue for the next 12 to 24 months until the inventory of unsold investor- owned flats remains on the market. Moreover, developers over the next 12 to 24 months will reduce their prices until the re-sale and fresh sale price converge.
Courtesy HT---31 March 2008
The trend will continue for the next 12 to 24 months until the inventory of unsold investor- owned flats remains on the market. Moreover, developers over the next 12 to 24 months will reduce their prices until the re-sale and fresh sale price converge.
Courtesy HT---31 March 2008
Thursday, April 3, 2008
PARSVNATH TO INVEST RS 40 CRORE FOR MALLS
Parsvnath Developers, a real estate company which is setting up a special economic zone (SEZ), has launched the construction of a mall-cum-multiplex in the city's fashionable Rajpur Road. The company will invest Rs 40 crore for developing of the complex, said the company's officials. Parsvnath Eleganza is the first such mall-cum-multiplex being developed in Dehra Dun. Eleganza, located at the prime location of Rajpur Road, the mall comes with an added advantage of a 4-screen multiplex within the complex. The mall is spread in a sizeable area of 1.5 lakh sq.ft with fully air-conditioned and 100 per cent power backup, claimed an official. Glass fronted lifts, aesthetic architecture and modern design will provide complete comfort and a pleasurable shopping experience to the costomers. The mall is designed for optimum space utilization for its shop owners. The mall will boost premium national and international brands. The entire complex for which the construction has commenced is expected to be completed and operational within a year time. The company is also setting up an IT SEZ at Dehra Dun with an investment of Rs 1,050 crore, which will be executed by its subsidiary Parsvnath SEZ. The SEZ will come up in 35 acres of area with 3.8 million sq.ft available for the development.
www.zameen-zaidad.com
Courtesy: BS 31st march 2008
www.zameen-zaidad.com
Courtesy: BS 31st march 2008
Wednesday, April 2, 2008
HUL May Partner a Developer
Sources said HUL could look at partnering with a developer. The company is understood to have held talks with international developers such as Ascendas and Tishmen Speyer, which is in India through a JV with ICICI. Ascendas has developed a few IT parks in this part of the world.
This is not the first time HUL is looking to partner with builders to develop properties. In 1998, the firm had signed an agreement with Tata Housing to develop some land into commercial and residential properties.
HUL wants a centralized business plan for its prime real estate properties across the country. The value of the Book field’s real estate, which was acquired as part of the Brllke Bond deal, was around Rs 60-70 per sq ft in the ‘90s, according to real estate observers. It is now almost Rs 3,000 per sq ft.
While smaller IT companies may move into SEZs as tenants, the bigger ones would look at co-developing SEZs, with Infy and Wipro already showing the way. It is estimated that 5-6 IT SEZs are under development across several micro markets in Bangalore. But this may be insufficient for a city that houses about 3,000 companies, with almost three applications coming in every week for new companies. The city has about 6 lakh employees working in the IT/ITeS sector.
The Bangalore facility was home to many of HUL’s food brands, such as Brooke Bond and Lipton. The Brooke Bond office- is located in the IT heartland, where land prices have seen significant traction over the years.
HUL mandated Chuhman Wakefield to offload the 28-acre property just ahead of a downswing in real estate prices in Bangalore’s IT hub spread across the Whitefield – Book field micro markets. The process, however, attracted several leading developers and corporate houses like Reliance, which put in a Rs 384-crore bid for the property with a plan to develop it into a backend operations centre/employee training hub for its retail operations. Other bidders included Brigade Group, Nitesh Estates and Oberoi Constructions.
HUL’s asking price of Rs 18-20 crore per acre was viewed as too steep by several developers, especially at a time when prices were softening. The bidders who remained in the race were asked if they would revise the quoted prices before HUL decided to call off plans for an outright sale. The Book field’s property came into the HLL fold following the acquisition of Brooke Bond in 1984 by Unilever in a global deal. The massive property was set up in 1983, when tea Major Brooke Bond moved its headquarters from Kolkata to Bangalore.
The company is currently consolidating its operations under one roof after ending its decades-old system of two power centers-home and personal care in Mumbai and foods in Bangalore.
Courtesy: ET dtd. 31-03-08
This is not the first time HUL is looking to partner with builders to develop properties. In 1998, the firm had signed an agreement with Tata Housing to develop some land into commercial and residential properties.
HUL wants a centralized business plan for its prime real estate properties across the country. The value of the Book field’s real estate, which was acquired as part of the Brllke Bond deal, was around Rs 60-70 per sq ft in the ‘90s, according to real estate observers. It is now almost Rs 3,000 per sq ft.
While smaller IT companies may move into SEZs as tenants, the bigger ones would look at co-developing SEZs, with Infy and Wipro already showing the way. It is estimated that 5-6 IT SEZs are under development across several micro markets in Bangalore. But this may be insufficient for a city that houses about 3,000 companies, with almost three applications coming in every week for new companies. The city has about 6 lakh employees working in the IT/ITeS sector.
The Bangalore facility was home to many of HUL’s food brands, such as Brooke Bond and Lipton. The Brooke Bond office- is located in the IT heartland, where land prices have seen significant traction over the years.
HUL mandated Chuhman Wakefield to offload the 28-acre property just ahead of a downswing in real estate prices in Bangalore’s IT hub spread across the Whitefield – Book field micro markets. The process, however, attracted several leading developers and corporate houses like Reliance, which put in a Rs 384-crore bid for the property with a plan to develop it into a backend operations centre/employee training hub for its retail operations. Other bidders included Brigade Group, Nitesh Estates and Oberoi Constructions.
HUL’s asking price of Rs 18-20 crore per acre was viewed as too steep by several developers, especially at a time when prices were softening. The bidders who remained in the race were asked if they would revise the quoted prices before HUL decided to call off plans for an outright sale. The Book field’s property came into the HLL fold following the acquisition of Brooke Bond in 1984 by Unilever in a global deal. The massive property was set up in 1983, when tea Major Brooke Bond moved its headquarters from Kolkata to Bangalore.
The company is currently consolidating its operations under one roof after ending its decades-old system of two power centers-home and personal care in Mumbai and foods in Bangalore.
Courtesy: ET dtd. 31-03-08
Tuesday, April 1, 2008
GET SET FOR ‘CELEBRITY’ REAL ESTATE
Would you like to have an office in Boris Becker Tower or rent Space in a business park named after Formula 1 world champion Micheal Schumacher? Or is another racer, Niki Lauda’s Twin Tower more up your avenue?
What about matching your office address with your residential one by living in an apartment designed by Ivana Trump (the ex-wife of hotelier Donald Trump) or ace golfer Greg Norman?
Don’t be surprised if this how some prime real estate is sold in times to come in the country. A trend that is making waves across the world of late ---especially in the United Arab Emirates---called ‘celebrity projects’ will soon make its presence felt in India as well. Celebrities are no longer just buying real estate, but also lending
Their name to it, to give buyers a sense of association with a trademark reputation and lifestyle statements.
Former golf pro-turned-business-man Greg Norman is already betting big on India. Norman’s company, Great White Shark Enterprises, is in talks with reality major Unitech to design golf courses in its various townships as well as build ‘gated communities within gated communities”.
Norman’s company will take 10 percent of a residential project (70 villas / apartments if the project has 700 on offer) and convert it into a signature real estate product. Says Bart Collins, President, Great White Shark Enterprises, which has $200 million in annual revenues, “we have already executed a number of projects in the US,Australia and the Middle East. The homes will be either called Norman Estates or Norman Residency and will have feature that will even put luxury to shame. There will be audio systems from Bang and Olufsen, interiors from big Italian companies and even a limited edition Range Rover with the home / apartment.” Dubai based Darvesh group has entered into a partnership with lvana Trump to construct premium residential and commercial properties in the Middle East and India. Named Le Diamond, the concept of branded real estate might come to India as early as the end of 2008.” We will launch the concept in Mumbai and New Delhi by the end of year,” said Ahsan Hassan Daresh, Managing Director, Darvesh Group.
Dubai recently also saw the launch of Sports Trilogy project comprising business tower named after sports personalities like Boris Becker, Micheal Schumacher and Niki Lauda.
Says Sanjay chimnani, Joint Managing Director, ACI Real Estate, the developer of the project, “We are planning to enter the Indian market through partnerships / franchises in the next few months. We intend to have a presence in six cities of India including New Delhi, Mumbai, Kolkata, Chennai, Banglore, and Hyderabad.”
However, celebrities do not just lend their name to a project. They are also actively involved in its design and marketing, thus differentiating it from the usual celebrity endorsement. Says Chinmani, “The key reason for the success of our project has been the hands-on involvement of these legends in the design and planning of the respective towers. Each of them sits on the board of directors for their respective buildings. This is a clear departure from traditional celebrity product endorsement.
Courtesy:HT dtd 31st March 08
What about matching your office address with your residential one by living in an apartment designed by Ivana Trump (the ex-wife of hotelier Donald Trump) or ace golfer Greg Norman?
Don’t be surprised if this how some prime real estate is sold in times to come in the country. A trend that is making waves across the world of late ---especially in the United Arab Emirates---called ‘celebrity projects’ will soon make its presence felt in India as well. Celebrities are no longer just buying real estate, but also lending
Their name to it, to give buyers a sense of association with a trademark reputation and lifestyle statements.
Former golf pro-turned-business-man Greg Norman is already betting big on India. Norman’s company, Great White Shark Enterprises, is in talks with reality major Unitech to design golf courses in its various townships as well as build ‘gated communities within gated communities”.
Norman’s company will take 10 percent of a residential project (70 villas / apartments if the project has 700 on offer) and convert it into a signature real estate product. Says Bart Collins, President, Great White Shark Enterprises, which has $200 million in annual revenues, “we have already executed a number of projects in the US,Australia and the Middle East. The homes will be either called Norman Estates or Norman Residency and will have feature that will even put luxury to shame. There will be audio systems from Bang and Olufsen, interiors from big Italian companies and even a limited edition Range Rover with the home / apartment.” Dubai based Darvesh group has entered into a partnership with lvana Trump to construct premium residential and commercial properties in the Middle East and India. Named Le Diamond, the concept of branded real estate might come to India as early as the end of 2008.” We will launch the concept in Mumbai and New Delhi by the end of year,” said Ahsan Hassan Daresh, Managing Director, Darvesh Group.
Dubai recently also saw the launch of Sports Trilogy project comprising business tower named after sports personalities like Boris Becker, Micheal Schumacher and Niki Lauda.
Says Sanjay chimnani, Joint Managing Director, ACI Real Estate, the developer of the project, “We are planning to enter the Indian market through partnerships / franchises in the next few months. We intend to have a presence in six cities of India including New Delhi, Mumbai, Kolkata, Chennai, Banglore, and Hyderabad.”
However, celebrities do not just lend their name to a project. They are also actively involved in its design and marketing, thus differentiating it from the usual celebrity endorsement. Says Chinmani, “The key reason for the success of our project has been the hands-on involvement of these legends in the design and planning of the respective towers. Each of them sits on the board of directors for their respective buildings. This is a clear departure from traditional celebrity product endorsement.
Courtesy:HT dtd 31st March 08
Subscribe to:
Posts (Atom)