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Govt relaxes norm on purchase, sale of leasehold properties

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india real estate news, realty news india, india realty news, real estate news india, india property news, track2media, track2realty, ravi sinha, 99 acres, 99acres.com, moneycontrol.com, ndtv, ndtv.com, barkha dutt, vir sanghvi, emaar mgf, emaar, dda, zee news, aajtakTrack2Realty-Agencies: The Delhi Government has lifted restriction on sale of leasehold properties which will benefit lakhs of property owners and may trigger hike in real estate prices.

The Revenue Department has asked all registrar offices to allow purchase and sale of leasehold properties.

Though, there were restrictions, transactions had been taking place through general power of attorney.

Officials said properties that have changed hands but were registered through power of attorney or sale agreement will be allowed for sale and purchase transactions.

The Revenue Department had forbidden purchase and sale of leasehold properties in 2011.

“It is clarified to all Sub-Registrar that under Section 17 (1-A) of the Registration Act, the documents containing contract to transfer for consideration any immovable property is compulsorily registrable document if having been executed after the commencement of Registration (Amendment) Act 2001, (w.E.F. 24.09.2001).”

“An agreement to sell in respect of immovable property is covered under section 17 (1-A) of the Registration Act and is a valid document to be registered if so desired by the parties and as such all these documents cannot be refused by Sub-Registrar,” the circular said.

The decision is likely to benefit lakhs of property owners in the national capital as they will be able to sell their properties.

The government decision, experts said, may fuel hike in property prices.

The property owners had been demanding relaxation in the norm for many years and now the decision will benefit areas such as Rohini, Vasant Kunj, Dwarka, Janakpuri.

The Delhi Development Authority (DDA) owns such leasehold properties and the restriction had been imposed after commercial activities were reported in some of the colonies owned by the agency.

DDA officials said the decision will help owners of leasehold properties in a major way.

Caught between distress sale and debt trap-II

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india real estate news, realty news india, india realty news, real estate news india, india property news, track2media, track2realty, ravi sinha, 99 acres, 99acres.com, moneycontrol.com, ndtv, ndtv.com, barkha dutt, vir sanghvi, emaar mgf, emaar, dda, zee news, aajtakTrack2Realty Exclusive-Yearly Analysis: The first visible sign of creditors losing patience came in October 2012 when two private equity funds, Citi Property Investors and JPMorgan Chase, initiated separate arbitration proceedings against BPTP on the grounds that it has failed to provide a time-bound exit for their respective investments in the company.

The two global funds reportedly alleged a breach of contract on the part of BPTP, which was to implement an Initial Public Offering (IPO) by July 8, 2011. Citi Property Investors, which was bought by Apollo Global Management from Citigroup in 2010, had invested Rs. 322.5 crore for a 5.89 per cent stake in the company in 2007.

Harbour Victoria Investment Holdings, a part of JPMorgan Chase & Co group had picked up 6.21 per cent stake in the company for around Rs. 260 crore in 2008-2009.

In the case of JPMorgan, the agreement with BPTP included a put option agreement, whereby the investor will get an exit through promoter buyback of shares at a fixed rate of return if the IPO did not happen.

Both deals happened when BPTP was emerging as a key player in and around Delhi, acquiring marquee land parcels for record prices. According to the original terms of the agreement, BPTP offered the investors an exit through an IPO.

Though BPTP got a nod from the Securities and Exchange Board of India, the stock market regulator, for a Rs. 1,500-crore IPO in May 2010, it decided to defer it, like many other developers at the time, due to uncertain market conditions.

“I see large-scale distress coming up. Right now it is more of financial jugglery which is keeping builders alive for a few months before everything starts to cave in. This is a difficult situation for developers. The debt burden is huge and they have to pay huge amount as interest rate every quarter. If the situation does not improve, they may have to put some of their large portfolio projects for sale,” says Goenka.

Realty analysts fear small privately held developers may go “belly up” and the industry will see large scale mergers and acquisitions and more distressed sales.

….to be continued

ED attaches Emaar MGF’s Delhi, Hyderabad properties for laundering

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india real estate news, realty news india, india realty news, real estate news india, india property news, track2media, track2realty, ravi sinha, 99 acres, 99acres.com, moneycontrol.com, ndtv, ndtv.com, barkha dutt, vir sanghvi, emaar mgf, emaar, dda, zee news, aajtakTrack2Governance-Agencies: The Enforcement Directorate (ED) has attached properties owned by Emaar MGF, the builder of Commonwealth Games Village in Delhi and several projects in Hyderabad, for alleged violation of Prevention of Money Laundering Act.

The attached properties are in Kalkaji in Delhi and Guchibowli in Hyderabad estimated at over Rs 70 crore. The order has been issued in connection with the Emaar Hills Township case in Hyderabad where the company is alleged to have sold plots for up to Rs 50,000 per sq yard but cooked books to show the sale at Rs 5,000 per sq yard leading to massive losses to the government in terms of revenue.

The agency has identified properties, including 34 villa plots in Hyderabad’s Guchibowli area and 4.86 acres of land in Kalkaji, as proceeds of the crime and thus ordered their attachment.

The company is already under investigation by the CBI, which has filed two charge-sheets in the case against suspended Andhra Pradesh Home Secretary B P Acharya, businessman Koneru Rajendra Prasad, Emaar MGF, represented by its Managing Director Shravan Gupta, Emaar PJSC-Dubai, represented by Md Ali Alabbar and eight other firms and individuals for alleged financial irregularities committed in Emaar Hills Township Project Limited (EHTPL). EHTPL is a joint venture promoted in association with the Andhra Pradesh Industrial Infrastructure Corporation (APIIC).

CBI has estimated that the state and APIIC lost Rs 215 crore in revenue due to the scam.

According to the ED, Emaar MGF Land Ltd had entered into an agreement with Emaar Properties PJSC, Dubai to develop Guchibowli area of Hyderabad. A number of companies, namely Emaar Hills Township Pvt Ltd, Boulder Hills Leisure Pvt Ltd and Cyberabad Convention Centre Pvt Ltd were incorporated in association with APIIC to develop the project land by way of constructing villas and apartments and sell the same after finalizing the rates in its board. These three companies are joint ventures of Emaar Properties and the corporation of Andhra Pradesh state.

An ED official said, “It has been revealed during the investigation that subsequent agreements between Emaar Hills Township Pvt Ltd, Stylish Holmes and Emaar MGF Land Ltd were designed to sell villa plots in the Integrated Township Project under criminal conspiracy. These three companies had sold villa plots at the rate disclosed in the books but collected excess amount and concealed the same to deprive the state corporation from its legitimate revenue share from the developed land.”

Requesting anonymity an official of ED confirmed Track2Realty that the proceeds of crime identified so far add to Rs 71.27 crore and have been attached under Section 5(1) of PMLA. Sources close to Emaar MGF said the company’s liability was only Rs 6 crore, the rest was Emaar’s.

The properties attached are 34 villa plots having total area of 41,189 square yards at Boulder Hills, Guchibowli, Ranga Reddy district, Hyderabad and 4.86 acres land having value of Rs 6.86 crore at Tehsil Kalkaji, New Delhi in possession of Eternal Buildtech Pvt Ltd, New Delhi. The company is a 100% subsidiary of Emaar MGF Land Ltd.

Fitch finds India’s real estate outlook negative for H2 ’12

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fitch ratings, india real estate news, real estate news india, india realty news, realty news india, kumari selja, rohtas goel, Kapil Sibal, sonia gandhi, rahul gandhi, manmohan singh, Unitech, DLF, india property news, property news india, naredco, affordable housing, government of india, ndtv.com, ndtv, zeenews, aajtak, times of india, hindustan times, indian real estate forum, indianrealestateforum.com, indianrealtynews.com, cnn-ibn, rajdeep sardesai, sagarika ghose, vinod dua, arnab goswami, barkha dutt, raghav behl, prannoy roy, vikram chandra, ravi sinha, track2media. track2realty, DDA, delhi real estate news, new delhi, K.P. Singh, Rajiv Singh, Sharad Pawar, Jairam Ramesh, CBI, DB Realty, LavasaFitch Ratings says in a new report that the Rating Outlook for the Indian real estate sector continues to be Negative for H212, due to persistent sluggish demand, high construction costs and liquidity pressures.

Given Reserve Bank of India’s caution on interest rate cuts, high equated monthly instalments (EMIs) will continue to be a deterrent for potential home buyers. This, together with high property prices and elevated inflation will keep demand sluggish.

However, y-o-y growth of home loans by banks – which had been slowing for the 12 months to April 2012 – picked up markedly in May and June 2012, and if continued may help spur the sector.

Slowdown in the economy and subdued job growth in the IT sector, which was at its lowest quarterly level in Q212, will hold back demand for commercial and retail properties.

Real estate companies will continue to face margin compression from high construction costs for both building materials and labour. From December 2011 to April 2012 the price of steel increased 13% and that of cement by 12%. Notwithstanding the trend of deleveraging since Q311, slowing demand, high costs and thus declining profits will keep leverage high for most real estate companies.

Reliance of real estate companies on operating cash flow will assume significance in the near term as available funding options remain limited. Growth of bank lending to the commercial real estate sector was low at 1.5% y-o-y in June 2012. Except for some pick-up in private equity, other funding options are restricted. As a result, companies that derive significant revenue from lease rentals will have a more stable credit profile compared with their counterparts whose business model is based on outright sale.

SME has its own brand value to attract realtors

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By: Manu Sharma 

3rd of the series

Track2Realty Exclusive

- india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, Delhi NCR real estate, Mumbai Real Estate, Bangalore Real Estate, Pune Real Estate news,Track2Media, Track2Realty, ravi sinha In commercial real estate there is a general marketing strategy to showcase brands that book the space. Will SMEs cluster give the developer that cutting edge? Realtors believe most Indian mid-sized companies have already emerged as recognizable brands. Companies such as Gati, Angel Broking, Samsonite, Tarz Lifestyle, Donear and other such companies are well-known; hence it is the facilities that the developer offers take precedence. They are looking for the best value for money; hence there is a pressure on keeping the prices competitive and facilities as attractive as possible.

The question is whether focus on SMEs reflects a negative outlook on the commercial real estate where market has got saturated for the developers. Mayur Shah, Chief-Sales and Marketing, Ackruti City outrightly rejects this theory. According to him the focus is now on every segment of the market, which is holistic and allows a developer to offer a choice of options. Market was never saturated. Absorption took a backseat when the economy was hit and expansion plans were put on hold. In fact in some locations commercial realty has done better than the residential markets. People have realized that to keep the economy growing and their own businesses flourishing, they have to expand and the recent reports on absorption is a reflection of this realization.

“Most of the banking and finance companies started small and have grown only in the last six to seven years, which is a revelation in itself. Some well-known IT companies have grown in size only recently. India has more than 5000 mid- sized companies and at least more than half started their businesses in the metro cities. So SMEs being only in tier II and tier III is a myth. The idea is to offer office spaces at the right locations and offer the right mix of floor spaces and amenities,” says Shah.

CWG Village gets Green Award

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india real estate news, realty news india, india realty news, real estate news india, india property news, track2media, track2realty, ravi sinha, 99 acres, 99acres.com, moneycontrol.com, ndtv, ndtv.com, barkha dutt, vir sanghvi, emaar mgf, emaar, dda, zee news, aajtakThe Common Wealth Games Village-Residential Project, constructed by Emaar MGF has been awarded Green Rating for Integrated Habitat Assessment (GRIHA) plaque for its green building design initiative.

The Commonwealth Games Village has been awarded 2 Star TERI-GRIHA – rating.     The plaque was presented at the inaugural function of the 3rd National Conference on Green Design by Arun Maria, Member Planning Commission to Emaar MGF.

Union Minister for New and Renewable Energy, Farooq Abdullah was also present at the occasion. Green Rating for Integrated Habitat Assessment (GRIHA) is India’s National Rating System for green building ‘design evaluation system’. GRIHA has been conceived by TERI and developed jointly with the Ministry of New and Renewable Energy.

ADARSH, Association for Development and Research of Sustainable Habitat, along with TERI orgsnised the national conference. Speaking on the occasion, Maj General A. K. Singh, Advisor, Commonwealth Games Village project said, “This is a very proud moment for EMAAR MGF. Emaar MGF has always been known for its international standards and its steadfast commitment to providing clean, environment friendly and green projects. This plaque recognizes the efforts and hard work in that direction.”