India’s largest real estate firm DLF plans to raise Rs.2,100 Cr through institutional placement program (IPP)- a system in the market in which the stakes are sold to qualified institutional buyers.
DLF, India’s largest real estate firm, by April 2013, will raise over Rs.2100 Cr via selling its shares to qualified institutional buyers. The real estate major will sell around 8.1 Cr shares of the firm to raise the fund.
Though the move is in line with the guidelines specifying 25% public shareholding, the main aim of the move is to help the firm reduce the debt. However the Rs.2100 Cr fund is one of the biggest ever- raised through IPP, in India.
An official said that they have already started discussions with the bankers. He added that the firm is likely to appoint around three or four merchant bankers soon for the purpose. Though the pricing is not yet done, the official said that the shares will be priced either at the current market price or there may be a 5% discount in the existing prices. However the prices will be as per the prescribed guidelines of IPP, he added. Continue reading
Competition Commission of India (CCI) frames a new buyer real estate developer agreement which the fair trade regulator hopes to become a standard agreement. The revised agreement is expected to meet almost all the issues related to real estate sales.
Competition Commission of India (CCI) prepares a model framework for commercial agreements between the property purchaser and the real estate builder. The fair trade regulator CCI hopes this framework to serve as a standard for the real estate industry.
CCI prepares the model framework in relation with violation of market dominance case against DLF. The real estate major was fined Rs.630 Cr penalty by CCI. The real estate major had appealed to the Competition Appellate Tribunal (COMPAT) against this fine. Continue reading
Current reports show that real estate shares are under heavy pressure of selling. Last Tuesday BSE real estate index was closed at 1,822.14 falling down by 3 %.
Real estate shares are under heavy pressure to sell off mainly because of profit-booking. Real estate investors’ sentiment was all the more hurt by the 7.8 % inflation of September. This was the highest in all the ten months of the year.
The 3% of fall of real estate shares was the highest among all the sectors. The shares of all real estate majors also affected heavily. DLF shares were sold at Rs.208 with a decline of 4.3%. Another real estate major Unitech fell to Rs.25.65 after facing a decline of 4.8 %.
The biggest real estate loser was Anant Raj Industries which dropped by 6.8%. HDIL had the second worst position as it had a drop by 5.7%. Continue reading
India’s largest real estate company DLF has plans to develop some properties in Delhi real estate. With this aim the real estate major has sold its stakes in Aman Hotel.
By selling its stakes in the Aman Luxury hotel, Real estate major aims to cover up its debt. Furthermore it has plans to develop some projects in Delhi real estate. Within a period of next three to four months’ time Delhi real estate will be able to witness some new DLF projects. Continue reading
Real estate firms are facing the CCI- probe. The Competition Commission of India (CCI) has started their probe against five real estate firms which are alleged of anti-competitive practices.
Five real estate firms are alleged of conducting anti-competitive practices. The real estate players like DLF, JP Associates, Omaxe, Tulip Infratech and Larsen & Toubro are alleged of anti-competitive practices.
Corporate Affairs Minister Sachin Pilot informed the RS- Rajya Sabha that the CCI has started its probe against the alleged real estate builders. He disclosed the names of the real estate players who are alleged. Continue reading
Real estate sector signaled the bouncing back. Real estate sector has been undergoing a sluggish momentum which the sector has overcome now.
Real estate majors like Supertech and Ansal API have announced their new real estate launches worth Rs.8,000 Cr. The realty majors plan to invest the amount for a period of 4 years.
Meanwhile some real estate builders are looking for options to cut the debts off by divesting their properties. Yet this is not the case for the coming years. Real estate experts opine that the coming years will be booming years for real estate sector. Continue reading
Robert Vadra is given a clean chit by the Prime Minister’s Office on Wednesday. Robert Vadra – son-in-law of UPA chief Sonia Gandhi- came out of real estate land scam clean as the PMO- affidavit declared him guiltless.
Robert Vadra was alleged to have involvement in real estate land scam along with real estate developer firm DLF. On Wednesday PMO informed the Allahabad High Court that the allegation against Mr. Vadra seemed false and unreliable. The prime minister’s office told that the allegation was mainly based on rumor. Continue reading
India’s Lodha Group is in advanced talks to buy a plot of land in Mumbai from DLF, the country’s largest listed real estate developer, for about $500 million, two sources with direct knowledge of the situation said.
Sale of the 17-acre plot is seen as part of DLF’s plan to sell some of its assets to pare its debt of about $4 billion. DLF bought the land for about 7 billion rupees ($129 million) in 2005.
Mumbai-based developer Lodha has emerged as the front-runner for the land parcel in central Mumbai said the sources, declining to be named as the matter is not public yet.
DLF declined to comment, while a spokesman for Lodha said the company was not in talks with DLF.
Firstly, several developers declined to abide by the code of conduct laid down by CREDAI. Following this, the association has expelled several developers, while some have resigned discontinuing their involvement with the organisation.
Opposing the self-regulation code, the builders refused to sign the association’s code of conduct. The bone of contention for builders was the code of conduct that primarily outlines transparency clauses that builders have to follow.
Ultimately, CREDAI expelled some builders, as they did not comply with the directives despite the body having issued several notices to them. DLF, Hirco and Hiranandani Realtors have been expelled from the Chennai Unit, whereas four builders have resigned from the Bangalore unit.
CREDAI has further decided to expel non-compliant builders in NCR and informed the expelled builders that they can be a part of CREDAI unit only if they sign the code of conduct.
Reuters Market Eye – India’s biggest real estate developer DLF (DLF.NS) rose 3.2 percent to 188.10 rupees after Goldman Sachs upgraded its rating on the stock to “buy” from “neutral” and raised its 12-month target price to 264 rupees from 252 rupees.
Goldman cited a pickup in residential launches, a recovery in commercial property, easing interest rates, and improved outlooks for asset sales as well as for operating/financial leverage as reasons for upgrade.
DLF’s share price is down 0.5 percent for 2012 while the BSE Sensex is up about 11 percent in the same period.
The upgrade has come close on the heels of DLF’s removal from the Sensex, which will come into effect from June 11.
Real estate developers rallied after newspaper Times of India reported on Tuesday some banks were cutting home loan rates for new borrowers, sparking hope of increased property sales in the country.
DLF and Unitech rose about 1% each on the report, which said that lenders Canara Bank and IDBI Bankhad slashed these rates to attract new borrowers.
The reported moves sparked hopes other rival banks would be forced to match the cuts in the loan rates.
Garden city is DLF’s first residential project, in the city of Nawabs – Lucknow. With almost 40 per cent of the area as open spaces and plot sizes starting from 250 sq. yards and above, the township conforms to very high standards of low density population norms. The facilities at Garden city match the international living standards and give the people of Lucknow their first real taste of an exquisite lifestyle. It boasts of meticulous town planning, eco-friendly infrastructure, wide open roads, its own smart sewage disposal plant, underground cabling and massive green belts running across the township.
Garden city has bagged the “Integrated Township of the Year – North India” award at the Realty plus Excellence Awards 2012, instituted by real estate monthly magazine Realty Plus. Cheered by a galaxy of realty stars, luminaries and other stakeholders present from all over the country at a glittering award ceremony held in national capital at The Metropolitan Hotel, Bangla Sahib road, Garden city, Lucknow was chosen for setting new benchmarks for excellence in the Indian Real Estate industry in 2012′, their immaculate town planning and their outstanding contributions and efforts towards bringing about massive and positive changes in the real estate skyline of this region.
This is the fourth award in the last two years conferred upon DLF India:
* Marketer of the Year For Hyde Park Estate at DLF New Chandigarh – Estate World Awards in Association with KPMG & Bloomberg-2011
* Developer of the year – North India – Estate World Awards in association with KPMG & Bloomberg-2011
* Integrated Township of the Year For DLF Valley, Panchkula – Realty Plus Excellence Awards-2010,
Receiving the award, Ananta Singh Raghuvanshi, director sales and marketing at DLF India Ltd said, “It is extremely encouraging to enter new markets and recreate the success and magic of the past. As a group we are extremely excited and committed to our developments in Lucknow, New Chandigarh, Hyderabad, Chennai, Bengaluru, etc. For each market, we are trying our best to think globally and act locally.”
CCI has again accused DLF of imposing unfair conditions on home buyers on its high-end residential project Magnolia in Gurgaon. For this, Magnolia Flat Owners’ Association had filed a complaint against DLF Universal, Haryana Urban Development Authority and the Director Town and Country Planning, Haryana, with the Competition Commission of India (CCI).
In the report, the CCI director general found that DLF has issued allotment letters, and apartment buyers’ agreements were signed even before it got approvals from the town planner. Also, the builder has revised the building plans and applied for increasing the height of the towers after collecting 90% of the money from the buyers, and two months after the original date of delivery promised by the company.
CCI had also found DLF guilty of abusing its position at the Park Place Project in Gurgaon, where they asked the company to cease and desist from imposing unfair conditions on buyers. The order had also directed DLF to suitably modify the unfair conditions imposed on existing buyers within three months.
Drish Paul, the president of the Magnolia Flat Owners’ Association, said that “Many people are living on rent, waiting for apartments to be handed over. We would eventually like to get compensated for the loss due to the delay in completion of the project.”
In a similar order in August 2011,CCI had slapped a fine of 630 crore on DLF for unfair practices, abuse of market dominance and disregard for consumer rights in its Belaire residential project in Gurgaon.
In a recent press release, a special scheme for government and defence staff has been announced by DLF for purchasing residential units in its projects.
Recently, Mr Mohit Gujral, Vice-Chairman and Managing Director, DLF India Ltd, said, “This special rebate for the people in the service of the nation is DLF’s tribute to their services. The scheme aims at encouraging end-users to be a part of these on going developments.”
The scheme is applicable on the projects mentioned as: DLF valley, Panchkula; Hyde Park Estate, New Chandigarh; Park Place, Jalandhar; Samatara, Shimla; Commanders Court, Chennai; Gardencity, Chennai; Maiden Heights, Bangalore; Riverside, Kochi; New Town Heights, Kochi.
The discounts to be given will range from 3 to 5 per cent that is it varies from Rs 1 lakh to Rs 20 lakh as per case-to-case basis on residential developments in Jalandhar, Panchkula, New Chandigarh, Bangalore, Chennai, Shimla and Kochi. This offer is valid only on direct bookings from January 21 to March 15, 2012.
India’s biggest real estate company, DLF Ltd, accounted a bordering drop of 4.8% in its net profit for the year ending 31 March 2011. Company’s combined net profit stood at Rupees1,640 crore in comparison to Rs1,720 crore in fiscal 2010. The earnings per share for the year stood at Rupees9.66 versus Rupees10.13 in fiscal 2010.
However, for the quarter ending 31 March, organisation’s net profit stood at Rupees 344.54 crore, a drop of 19% in comparison to Rupees 426.38 crore in the subsequent period in the previous financial year. It reported combined revenue of Rupees10,145 crore for the year ending 31 March 2011 and an increase of 29 per cent from Rupees7,851 crore in the subsequent period in the previous fiscal.
EBIDTA stood at Rupees 4,337 crore, after adjusting for a one-time cost reset due to input price high of Rupees 475 crore.
The hike in interest rates may have a wrinkly effect on the real estate sector with construction cost rising up. This announcement by RBI will have a negative impact on real estate developers already spining under pressure from lack of capital from financial institutions. It comes as bad news even for those looking to buy a house as loans would become more costlier. Several banks like ICICI Bank, SBI and IDBI indicated that they would increase interest rates on loans in near future.
Chairman of Credai said, “The 50 BPs hike is harsh. This will deepen the cash crunch scenario which industry is facing right now. Taking out funds of the market cannot be the only solution to overcome inflation. The current pressure on prices is global in character and reflects supply side bottleneck. The solution is not monetary tightening. To me it is surprising and anti-housing policy.” Ashok Tyagi, group CFO, DLF said, “hiking interest rate has never been a tool to fight inflation. This could start impacting supply side investment.”
DLF Brand, a subordinate of DLF Ltd, has come up with its presence in fashion retail trade by collaborating with the Spanish Brand Mango. This happened since the brand announced its two other new retail trends, including a multi-brand showroom chain, of its own. The DLF group company had also launched, for the first time, its own brand, Pure Home and Living, a premier home decor and furnishing brand of retail showrooms. The first of the showroom opened in Delhi two months back competing with Future Group’s Home Town and Landmark Group’s Home Centre.
Mango, the Spanish Fashion Brand, with over 1,700 showrooms worldwide, decided to sign up DLF as partner to fast track its expansion after nearly a decade of operations in India. The Spanish Brand of clothing has been majorly in partnership with Major Brands through which it released almost 15 stores. DLF will be leading the new showrooms openings. DLF, which has already opened Mango’s travel retail showroom at the new terminal (T3) of New Delhi airport and plans to add another six more stores in the current year, said DLF Brands CFO Dipak Agarwal.
“The major collaborations are now looking to grow assertively here in India having been around for so long. The company wants to concentrate on brand-building and designate the expansion to its franchisee,” Agarwal added. DLF also operates other universal fashion names such as Armani, DKNY, Ferragamo and Mothercare.
DLF is set to launch a multi-brand retail store chain of international fashion brands, the company official said. These showrooms will also store brands that are not part of DLF Brands and will be competing with the high-end retail formats like The Collective, a unit of Aditya Birla Nuvo.
“The multi-brand showrooms will be like a premium discount showrooms keeping high-end fashion labels but at lower price, as there is an opportunity in the market for such showrooms which are highly internationally popular. These stores will be done up gracefully and won’t look like the second stores or factory outlets which are available at present,” Agarwal said. The first of the multi-brand showroom is spread across 10,000 sq. ft which will open in Gurgaon.
Photo by Saga A’xeronAfter the success of ‘Affordable homes’, realtors are now moving towards the launch of luxurious housing. The demand for luxurious houses indicates that there is big scope for realtors there.
With this increase in demand, many developers including Ansal API, Unitech, DLF, Emaar MGF etc are jumping into this business and plan to launch huge number of housing projects within next six months, where the cost of each single unit will be over Rs. 2 cr.
According to the executive vice-chairman and managing director at Emaar MGF, Shravan Gupta, since the recession period is over and job market is looking up, there are chances of realty boom too.
Within six months, cities like Punjab, Gurgaon, Bangalore, Hyderabad and Kerala will be overloaded with such projects.
The stake owned by Limitless Group, part of Dubai World, in Bidadi Knowledge City in southern Karnataka state will be bought by a unit of DLF.
Currently, a restructuring worth 23.5 billion dollar is going on in the Dubai World.
In April 2009, Limitless said that since authorities there have not bought the required land, so it was looking a 12 billion dollar project; both residential and commercial in India.
In October 2007, India’s DLF and Limitless first time went into the construction of Bidadi city on the outskirts of Bangalore.
Since the sales of residential realty are diminishing gradually these days, it is expected that the real estate companies will experience decline in the first quarter of financial year 2010-11. However, it cannot be ignored that the office market is picking up with the economy.
As per the data collected by leading stock brokerages show, it is expected that in the June quarter, the realty companies will undergo around a 20% growth in the net profit and a growth of 38-40% in net sales. As per the data of last year, there had been a net profit of over 80% which certainly brings the conclusion that market has experienced a decline in sales and profit.
A stock analyst with a Mumbai-based brokerage said that as compared to the June quarter of financial year 2010, the numbers look somewhat flat in this financial year.
For instance, the gross margins of DLF were 49% and had a growth of only 4%. Similarly, Unitech’s net profits had a growth of just 1%.
One of the leading real estate developers in India, DLF, has been granted the NOC from the government today, thus the firm will now resume its plan for SEZ, a special economic zone in Kolkata.
After a meeting of the Board of Approval which is the nodal body for SEZ-related matters, Mr. D K Mittal, the Commerce Ministry Additional Secretary told the media that the DLF’s SEZ in Kolkata has been granted re-notification by the Board of Approval.
In June, 2008, DLF had come up with four SEZ projects out of which one was SEZ Kolkata.
DLF have gained this notification after a long struggle since it had to approach the Commerce Ministry for reviving this IT/ITeS tax-free zone. Finally, once the demand for IT/ITES leasing space came up, the company allowed for resuming the project.
DLF, India’s leading real estate developers, plan to raise an amount of Rs. 2700 cr. this financial year by selling non-core assets in order to reduce its debt of over Rs 16,421 cr. by about 33%.
The realty giant plans Rs. 5000 cr. to be cut from its debt. Out of these, Rs. 2700 cr. will be raised from sale of non-core assets and the left over from internal accruals. Last year, DLF could raise only Rs. 1800 cr. from sale of non-core assets while it planned for Rs. 5500 cr.
This fiscal, DLF has to compensate Rs 2,500-2,700 cr. in debt and also an interest of Rs. 1800 cr. Also, officials believe that this Divestment of non-core assets is not just a means to reduce debt but is a strategy to focus more on the core business operations.
Rs. 7,855 cr. was the overall revenue during financial year 2009-10 which is reduced by 25% as compared to Rs. 7,855 cr. in financial year 2008-09. The firm sold an area of 12.55 million sq ft across the world in the last fiscal.
The US-based hospitality major Hilton International Co is thinking of bringing more of its global brands, including luxury chains Waldorf Astoria and Conrad, to the country.
Photo by MelkirThe company is willing to expand its base in India particularly after it got into a joint venture with real estate major DLF in 2006-07, in which the American chain holds a 26% stake. At that time, the JV had announced plans to invest $ 1.5 billion to open 50-75 properties across the country over next few years. Now it is believed that the company has sought permission to either invest or acquire stake in other Indian hospitality firms as well.
According to some official sources, Hilton International Co had sought an approval from the Foreign Investment Promotion Board (FIPB) to allow it to bring forward more brands such as Doubletree and Hampton by Hilton, Waldorf Astoria and Conrad which was deferred by the FIPB in its meeting held last month.
It had sought a change in existing approval by the FIPB, under which it operates a joint venture with DLF for running four of its brands in India. The brands include the serviced apartments under the Hilton Residences and Homewood Suites and serviced segment Hilton and Hilton Garden Inn.
In its application to the FIPB, the hospitality major also sought permission to invest in or acquire equity stake in other Indian companies, which are into hospitality and tourism sectors.
“The existing JV remains on track. The new partnerships will be for its other brands that it intends to bring to the country,” the sources from the company said.
Hilton Worldwide has global revenue of over $ Eight billion and currently operates over 3,200 properties across 80 countries. It owns, manages or franchises a portfolio of over a dozen brands.
Hilton currently operates 2 hotels in Delhi. One of which is under the JV and the other under a franchise agreement with a local partner.
With so many world’s leading corporations coming to India in the year ahead the country’s economy is on a roll.