Tag Archives: Commercial Projects

Godrej BKC jointly launched by Godrej Properties and Jet Airways

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Partnering with Jet Airways, Godrej Properties will develop a commercial project in the Bandra Kurla Complex in Mumbai. The airline and the realty firm will hold equal shares of the project named Godrej BKC.
Godrej will develop a commercial project named Godrej BKC jointly with Jet airways.

Godrej will develop a commercial project named Godrej BKC jointly with Jet Airways.

Real estate wing of Godrej Group, Godrej Properties Ltd. (GPL) will launch a commercial project, named Godrej BKC,  in the Bandra Kurla Complex area. Jet Airways will partner with Godrej Properties for the development of this commercial project.

The construction has already been started and the project is expected to get over by 2015-end.

Pirojsha Godrej, the Managing Director and Chief Executive of GPL; while commenting on the project, said that the firm expects to create around Rs.3,500-4,000 Cr from the project. He added that the project will be completed within two to three years.

However, he kept his lips crossed when asked about the financial details of the project. So far no financial details are available.

The cost will be borne by both Jet Airways and Godrej Properties equally. They will have 50 – 50 share in the project named Godrej BKC. Jet Airways has already reserved 2.5 lakh sq. ft. of office space in the project. The total salable space in Godrej BKC is 1.3 million sq. ft. Continue reading →

Real Estate India to Boom As Construction Regains Pace

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Real estate India expects to get rid of the sluggishness. The year 2012 was really a sluggish year for the real estate builders.
real estate construction regains pace in India

Real estate India regained pace of construction. It is said to boost real estate India.

Real estate India is expected of gaining a boost from the retail FDI policy. The increased demand for retail spaces prompts the real estate players to construct more commercial projects. This in fact leads to real estate boom in the country.

Commercial real estate prices have risen sharply in India, especially in its big cities. Yet quality retail spaces available for rent are minimal. Thus the real estate experts predict a boom in construction. This will be all the more boosted by the entry of foreign multi-brand retailers. Continue reading →

After September 2010, Godrej Properties Posts Its Worst Ever Quarterly Performance

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Godrej Properties,  part of the Godrej group and one of the most promising Indian real estate companies, posted its worst ever quarterly performance after the September 2010 quarter when compared year on year. The company has registered a subdued growth of 8% in its consolidated net sales and 17.4% drop in operating profit. The company’s performance was impacted by subdued sales volumes, weak operating margins and a slowdown in execution. Over 60% of its total income during the quarter was accounted for from projects connected to group companies. The remaining projects earned a negligible margin. Certain commercial projects were sold below the break-even cost leading to drop in margins.

Cost escalation and higher share of minority interest also impacted the company’s margins. Growth in sales volumes have not been very encouraging in its Garden City project in Ahmedabad which contributed 16% to the total income compared to 49% in the preceding December quarter. Net debt after excluding the money rose from IPP stood at 1554 crore leading to debt equity of 0.85. This is higher than the ratio of 0.55 at the end of the previous fiscal.

The company’s management though is optimistic about improving margins, ramping up execution and launching 17 new residential projects in FY13. Maintaining the health of its balance sheet is going to be a major priority. However for now, the stock is likely to see some more correction as the Street would knock off the premium built into the realty stock price on account of the company’s asset light model, good track record and reputation of its promoters.

Best Features of Noida Extension

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CORNER LOT FOR SALE: SAGAMI-OTSUKA
After the locations called Raj Nagar Extension, Mayur Vihar Extension, now its Noida’s turn to stretch itself and the name given to this stretch is Noida Extension.

There are large numbers of upcoming projects here located adjacent to Noida’s Sector 121. These face the Noida-Greater Noida Link Road. It is expected that within next three months, this stretch will become operational.

Some of the major features of Noida Extension are:

Prime Location: Noida Extension actually belongs to Greater Noida sector 1. It is a part of NCR and is close to Noida sec. 121 and sec. 119.

Connectivity: One of the best features of Noida Extension is its connectivity across the complete NCR. And the upcoming metro line is acting as cherry on the cake.

Infrastructure: The Noida-Greater Noida Link Road which is 130m wide passes through the area. Also, NH 24 is just 60m away.

Long Term Investment: The area will pick its pace in around a year or two. But once it is full fledged, it won’t lack returns. Thus, it’s a long term investment opportunity.

Options for all: The developers are coming up with all kind of residential projects, office spaces and commercial projects. Thus, Noida Extension will have goodies for everyone.

Affordable Housing: The projects brought up by the developers provide a large range of residential opportunities whose prices will fall in the range of Rs. 9 lakh to Rs. 40 lakhs.

Commercial Realty unable to seek Buyers

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Commercial National Bank
Due to the continuous oversupply of the commercial projects, the signs of pickup in demand in the sector seems becoming dull and thus banks are also backing out from lending to real estate firms.

As compared to the residential sector, the demand growth of the commercial sector in past few months is much behind that of the residential one. Not only the office spaces are yet to be occupied, but also the ready projects are unable to seek buyers. This lack of buyer’s interest in the office spaces, multiplexes and retail has forced banks to back off lending to commercial sector.

Other than the uncertain demand scenario for commercial space, banks also have to look and take care of the rising realty sector debt on their ledgers. Ranjan Dhawan, the chief general manager of Punjab National Bank (PNB) said that since some of the banks have reached their sectoral exposure limit, they cannot now get into more lending. He also added that although PNB is still in is exposure limit, still it would get into some other lending only after thorough due-diligence.