The higher financial stress of the Government makes them think of selling or leasing of the surplus land. This will provide more land for construction in metropolitan cities like Delhi, Kolkata, Mumbai and other such notable cities of India.The decision will boost the real estate growth. Realty firms are sure to cast their hawk’s eye on this land and make the profit out of it. Continue reading
Construction major Jaypee Infratech has launched a new residential project called Jaypee Greens Yamuna Vihar as a part of its Greater Noida based township, Jaypee Greens Sports City. The project offers residential plots of around 200 and 300 sq yard with a cost of Rs 27000 per sq yard. An pre-launch discount of Rs 900 per sq yard is being offered for a limited time taking the cost to Rs 26100 per sq yard. Booking amount is Rs 4 lakh which can be paid via Demand Draft in favour of Jaypee Infratech Ltd.
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Since the land rate are rising and realty seems to be the most profitable market, many of the top textile firms are also attracted to this business and are thus generating additional revenue streams by developing or selling precious real estate.
Some of such firms are Provogue India, Century Textiles & Industries, Bombay Dyeing & Manufacturing and Alok Industries. These all aim at boosting the cash flow and reducing debts.
In the last year, the cities like Mumbai and Delhi have gone through a big hike in property prices. Across the whole world, Mumbai is rated as the most expensive office location.
The chairman of brokerage CNI Research, Kishor P Ostwal said that a lot of companies own huge land banks but the valuations in the market are given only to those who aim to develop these land banks and not just own them.
Thus, Century and Bombay Dyeing are both rated as a ‘buy’ by Ostwal since they have premium large tracts in central Mumbai.
The Naveen Patnaik Government’s failure to help companies take possession of land has delayed implementation of 14 mega industrial projects.
Top representatives from Posco-India, Tata Steel, ArcelorMittal India Ltd, Jindal Steel & Power Ltd, SSL Energy Ltd, Uttam Galva Steels Ltd, Essar Steel Orissa Ltd, Bhusan Power & Steel Ltd, Aditya Aluminium Ltd, Welspun Power & Steel Ltd, Vedanta Aluminium Ltd, Jindal India Thermal Power Ltd and Bhushan Steel Ltd attended the meeting.
The 14 projects had proposed investments of Rs 2 lakh crore but have invested Rs 21,031.71 crore only. Though 45,607 acres were required for the projects, the State Government had allotted them 14,131.90 acres till date.
Most companies have not been able to take possession of land for their respective projects primarily due to opposition from people living in the area who face displacement. The other issues were availability of water, supply of power, and rehabilitation and resettlement.
The Minister asked senior Government officials to resolve the problems facing the industries and also advised the companies to expedite land acquisition.
The revival of riches in the real estate sector has encouraged textile companies with huge land banks to enter into property development.
Among such companies are textiles major Bombay Dyeing and Century Textiles.
Golden Tobacco, manufacturer of the Panama and Chancellor cigarette brands, is also considering to have its real estate arm to utilize its land assets across the country.
Earlier, groups like Tata, Mahindra and Godrej also entered the realty space. The Tata group has Tata Housing and Tata Realty while Mahindra’s venture is called Mahindra Lifespace Developers. Godrej’s venture goes by the name of Godrej Properties.
The Greater Mohali Area Development Authority will implement a land pooling scheme for three major projects.
Farmers whose land will be acquired for the road linking S.A.S. Nagar international airport with Zirakpur and Patiala, Kharar-Desumajra airport road stretch and Mullanpur Urban Estate will be able to avail benefits like owning a plot. Under the scheme, a farmer will be made owner of 50% of land after GMADA develops it into a residential, commercial or an institutional plot. For 1 acre of land, a farmer will be given a residential plot of 980 square yard and commercial plot of 121 square yard in the developed area. The GMADA will also pay rent to farmers till they are allotted plots. The collector will fix the rent.
GMADA wants to popularise the land pooling scheme and have launched an awareness programme. However, it won’t be binding on the farmers to toe the GMADA line. In case any farmer does not want to opt for the scheme, GMADA will pay him cash fixed by the Land Price Fixation Committee.
The GMADA had decided to acquire 771 acres of land to build 200-metre wide road from the international airport to a site near Chhat village on the National Highway 64. On both sides of the road, some area will be allowed for mixed land use, implying that people can run commercial activities.
The GMADA will acquire 260 acres for KhararDesumajra-airport road stretch and 444 acres for Mullanpur Urban Estate.
Notifications for two projects have been issued while that for Urban Estate will be done soon.
Debt-ridden realty player DLF said that it will sell more land and wind power business this financial year to raise Rs 1,900 crore and lowered the sales figure for flats.
With a total debt of over fourteen thousand crore rupees to start the year 2009-10, DLF had been doing everything conceivable, including sale of promoters’ equity in the company as also different projects. DLF has sold 2500 flats during 3 months ending June.
Rival Unitech on the other hand has been able to bring down its debt to below Rs 5,000 crore and today it is believed to have some cash surplus.
As part of its management of debt, DLF sold Rs 1,000 crore worth of land during April-June period and is planning to garner 900 crore rupees to part-repay the debt by exiting its wind power business.