Bangalore Based Firms Plans to Raise Rs 100 crore through NCDs
Century Real Estate, a Bangalore-based full-service real estate development company recently raised Rs 100 crore through a private placement of non-convertible debentures (NCDs). The company, which has plans to launch seven projects, will use these funds for project development, according to a company press release. Through these projects, the company would develop a built-up area of 1.7 million sq ft in the next eight months.
Mahesh Prabhu, director-finance, Century Real Estate, said in the release that with the launch of these projects, the company plans to add an inventory of over 1,500 apartments to the existing inventory of 1,200 apartments. The company currently has nine ongoing projects with a total built-up area of 1.2 million sq ft across Bangalore.
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Hoteliers Planning to Increase Room Tariff by 10-15%
In an attempt to cash in on the peak winter season and the improved economic scenario, “Hoteliers are planning to increase the average room rates (ARRs) by 10-15 per cent from September 2010 as they expect tourist traffic to improve,” says a report by domestic brokerage Angel Broking.
Although, the report didn’t talk about their plans for the upcoming Commonwealth Games, it is expected that tariffs will increase from October 3-14 on the back of strong demand. Last two years proved dull for the hotel companies as they were forced to slash average room rates by 25-30 per cent due to terrorist attacks in the country that led to lower occupancy levels as people were apprehensive to travel, the report said. Read More »
Prestige Group to Come up with Premium Residential Project in Bangalore
The Prestige Group has launched a premium residential project — Prestige Silver Oak — in Whitefield, Bangalore. Spread across 17 acres, the project comprises 146 independent villas and 32 low-rise apartments and is set amidst scenic landscapes.
According to the company, the project is all set to give a new meaning to luxurious living in the city and poised to become the next premium luxury destination in the Bangalore city.
Irfan Razack, chairman and managing director of Prestige Group, said, “The Prestige Group has always attempted to create landmarks in Bangalore through our commitment to international quality and design. Over the years, we have created a niche for ourselves in the luxury residences category and Prestige Silver Oak promises to be yet another milestone for the company in this segment. The development reflects an introduction to a popular West Asia type architecture with spatial designs which combines fantasy with the practicality of modern day lifestyle.”
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IFC in Discussion with Real Estate Developers to Create Large Affordable Housing Projects
The International Finance Corporation is in talks with several real estate developers to create large affordable housing projects in India. “IFC has been talking with everybody; there have been discussions with the Tatas and with other corporate groups on this,” said Mr Paolo Martelli, Director, South Asia, IFC. “Everybody” includes both real estate developers and housing finance companies, he said.
“We are working on this and we hope one of these projects will be developed in the next six months,” he said. If the estimated housing deficit in India is 25 million units, then such a large requirement cannot be tackled completely from a real estate point of view, according to Mr Martelli. IFC can help the Indian sector with advice on how affordable housing has been tackled in other countries such as Mexico where “literally, they are building cities at a time, 15,000 to 20,000 homes, costing between $7,000 to $15,000”. (The Corporation is also in talks with home builder Homex in Mexico for such projects here in India.) Read More »
Alembic to Foray into Real Estate
Country’s oldest pharmaceutical company Alembic on Friday announced its foray into the real estate sector with the launch of newly formed company Alchemy Real Estate. This business entity will be headed by Udit Amin as CEO. Udit is son of chairman and managing director of Alembic Limited Chirayu Amin.
It was in June this year that the city-based pharma major Alembic while announcing its de-merger plans had announced its intentions to enter into real estate sector with commercial and residential properties. Company official on Friday said that Alchemy’s upcoming maiden residential project Shangri-La is located on Alembic Road near Bhailal Amin hospital and overlooking Alembic cricket ground. Read More »
Nagarjuna Records 17.98 per cent rise in net profit
Nagarjuna Construction today posted a 17.98 per cent rise in net profit to Rs 56.22 crore for the first quarter of the current fiscal compared to the year-ago period. The company had a profit of Rs 47.65 crore in the same period a year ago. The leading construction firm had a net sales of Rs 1,399.50 crore for the reporting period, as against Rs 1,209.73 crore in the same period of the previous year.
Zuri Group Looking at an Investment of Rs 1,200 crore to Expand its Presence in Hotel Industry
Zuri Group Global, the multinational conglomerate, has chalked out a multi-pronged expansion approach for its hotel chain, Zuri Hotels and Resorts, in India and abroad over the next five years. The company is looking at an investment of Rs 1,200 crore in the hospitality sector to set up its own brands and take up management contracts as part of its strategy to increase the number of wholly-owned properties.
The management contract model will allow Zuri to rapidly build a presence in more cities around the world, Priti Chand, assistant vice-president, PR and Corporate Communications, said. Chand said the company intends to set up at least 10-15 projects under the management contract models in cities, such as Hyderabad, Chennai, Mysore, Kochi, while the owned projects will be coming up at Bangalore, Nairobi and in West Asia in the next two years. The company is in advanced stage of discussions with various private owners for management of these hotels, she added. Read More »
VME Realty to Start Residential Project in Chennai
VME Group, which has its presence in the real estate market from more than two-decade with focus on infrastructure, especially highway and railway bridges, has now turned its attention on property development. Construction is about to begin on its maiden residential apartment project that will offer a total of 302 apartments through a mix of 1 BHK, 2 BHK and 3 BHK flats.
The project, Lakeside, is coming up on a nearly 3.5 acre plot just off the Chennai-Bangalore highway, close to Chembarambakkam Lake, one of the major drinking water sources for the Chennai city. The flats come in sizes between 500 sq ft studio apartments and 1,150 sq ft 3 BHK flats. It also has ample number of covered car parks for the end users. Read More »
Property Oversupply can Lead to another Real Estate Bubble
With India’s real estate market brimming with new launches, investors need to exercise caution while choosing projects. Leading private equity investor Gaurav Dalmia , founder chairman of realty-focussed Landmark Holdings that is investing $225 million in specific projects, feels speculative buying can act as a downtrend. In an interview Dalmia tells why he feels some pockets of real estate market may tumble in the coming months.
Developers continue with new projects even as prices remain high. Do you see demand taking a dip? Read More »