Tag Archives: DB Realty

L&T Infra Finance checks in at Lavasa

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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, Lavasa hill city, DB Realty, Shahid Balwa, UnitechTrack2Realty: L&T Infra Finance has signed an agreement with Lavasa Corporation for purchase of 20.23 hectares of land, with a development potential of 5 lakh sq.ft at Mugaon town in Lavasa City, near Pune.

L&T Infra Finance, a infrastructure finance company, is a subsidiary of L&T Finance Holdings Limited. Mugaon is the second town being developed in Lavasa City after Dasve. L&T Infra Finance proposes to utilize this land for corporate purposes and potentially for back-office requirements of L&T Financial services.

Speaking on the development, Rajgopal Nogja, Chief Operating Officer, HCC Group, stated, “We welcome L&T Infra Finance’s decision to be part of Lavasa City’s vision of becoming the preferred destination for both business and leisure. The natural beauty of the hill city and an award winning master plan that stresses on quality living with homes, works spaces, education facilities, leisure and entertainment avenues at walkable distances from each other and the location advantage, give Lavasa City an edge. This move will also create employment opportunities and give impetus to the region’s development.”

Commenting on the development, G Krishnamurthy, Chief Executive, L&T Infra Finance said, “We are pleased to have begun our association with Lavasa City. We believe that Lavasa City represents the way new cities in India will come up in the future and our investment is an opportunity to participate in this growth.”

The Lavasa development comprises of five self-sustaining towns with a capacity for a permanent resident population of approximately 240,000 citizens and an estimated 2 million tourists per annum. Businesses associated with Lavasa City include State Bank of India, Shail Group, Accor Group, Pullman,  Apollo Hospitals, Ecole Hoteliere de Lausanne- Switzerland, UKIBC, Educomp and a plethora of retail brands such as Bata, Smokin Joe’s, Café Coffee Day, etc. A tie-up is also in place for Sir Steve Redgrave for a rowing academy.

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.

Lavasa launches its second town ‘Mugaon’

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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, Lavasa hill city, DB Realty, Shahid Balwa, UnitechLavasa Corporation has announced the launch of Mugaon – the 2nd town to be built at Lavasa. Situated on the banks of the lake, Mugaon will be developed on approximately 2400 acre area and is much larger than Dasve, the first town of Lavasa. The launch was announced by Rajgopal Nogja, Group President – HCC in presence of the finalists of Miss India pageant 2012 at the Lavasa international Convention Centre (LICC). At the event the 20 pretty finalists launched Bellshore Apartments – the first in series of apartments on sale at Mugaon.

Mugaon, located close to the first town Dasve is being developed as a residential, educational, business and commercial hub. Major attractions in the new town are the Town Centre with shops, cafes, cultural institutions, spiritual centres, Apollo Medicity, schools and colleges; Sports Academies like Manchester City Football Academy, Nick Faldo Golf Academy etc and a USSRC supported Space theme Park and a Hollywood – Bollywood style theme park.

Over 2000 spacious apartments will be developed on both sides of the lake at Mugaon over a four year time period and the project is being designed by India’s leading architect, Hafeez Contractor.

Speaking about the launch of Mugaon, Rajgopal Nogja, Group President – HCC, said,  “Dasve and Mugaon, the first two towns are part of the planned Phase 1 development which has been cleared by the Ministry of Environment & Forests (MoEF).  Dasve, the first town is completely sold and for Mugaon we have a long waiting list. It only goes to prove that people have liked the concept of Lavasa. We are confident that the picturesque residential apartments on offer in Mugaon will be sold out soon.”

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.

2G: ED to attach properties worth Rs 223 cr of DB Realty, others

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Shahid Balwa, Asif Balwa, 2G Spectrum Scam case, Swan Telecom, DB Realty, Rajeev Agarwal, real estate news india, realty news india, property news india, Kusegaon Fruits and Vegetables, Conwood Construction, Kalaignar TV, Kanimozhi, KarunanidhiThe Enforcement Directorate in India will attach immovable property worth Rs.223 crore of five companies involved in the 2G scam case, after an anti-money laundering court gave its nod on Tuesday, Jan 10.

The firms are connected with the alleged bribe of Rs.200 crore paid to Kalaignar TV.

The competent authority under the Prevention of Money Laundering Act (PMLA) approved the ED order for attachment after hearing the arguments of all the parties.

“The attachment order has been upheld by the PMLA court here,” official sources said.

The value of properties attached of these companies are Dynamix Realty (Rs.134 crore), Conwood Construction and Developers (Rs.22 crore), Nihar Constructions (Rs.1.10 crore), DB Realty (Rs.52 crore) and Eversmile Construction Company (Rs.13 crore).

The agency had made the CBI charge sheets in this regard as the basis for this order.

“According to the chargesheets of CBI, a bribe of Rs.200 crore was given by Swan Telecom Pvt Ltd (now M/s Etisalat DB Telecom Pvt. Ltd.) to Kalaignar TV through a number of intermediary companies in the garb of loan or share application money. However, the same was returned to Dynamix Realty (a company of Shahid Usman Balwa and Vinod Goenka),” ED had earlier said in its order.

“The details of the charge sheets show disclosures made by the intermediary companies in the movement of the bribe money under the garb of loan or share application money do not substantiate genuine and bonafide financial transactions,” the order said.

DB Realty to pick up 49% in hospitality arm

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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, DB Realty, DB Hospitality, Shahid BalwaDynamix Balwas (DB) Realty, the Mumbai-based realtor, has decided to buy upto 49 per cent stake in its hospitality arm, DB Hospitality Ltd, an unlisted arm where the promoters hold a majority stake.

The promoters of the company, Vinod Goenka and Shahid Balwa, own 80.92 per cent in DB Hospitality Ltd, while the rest is owned by private equity funds, including IIRF Holdings VIII Limited and Mauritius and IL&FS Trust Company Limited.

Last year, Trinity Capital (Seven) Limited, Mauritius, exited its stake from the hospitality business. It was not clear whether funds will exit their stakes or promoters will reduce their share in the company.

R Sridhar, Group Director, said: “The board has approved an investment upto 49 per cent in the hospitality business and we will do it in a timely and phased manner. We have already hired a big four international property consultant (IPC) to do the valuations and one of the big law firms to draw the plans. We will not raise any debt for the same. The stake buy out will enable both the funds and the promoter an opportunity to exit.”

According to analysts, the transaction will be fructified in the next 15 days or by the end of the month. DB will also focus on commercial and hotels business.

DB Realty does not own any stake in the hospitality arm at present. It had invested around Rs.200 crore last year in D B Hospitality which will now be converted into equity. The company will invest an incremental amount of Rs.500 crore which will be divided into two tranches. In the first tranche, it will spend Rs.300-400 crore and another Rs.200 crore in the final stages. The total investment will be around Rs.700 crore.

DB Realty is also planning to sell non-core assets to fund the acquisition. Sridhar said a few firms had been hired for selling the non-core assets that have already been identified.

DB Realty witnessed a 33 per cent fall in its consolidated net profit to Rs.41.14 crore for the quarter ended June, against Rs.61.84 crore during the year-ago period. Net sales for the period fell 16.33 per cent to Rs.221.5 crore in the first quarter of this financial year, against Rs.264.7 crore in the corresponding quarter last fiscal.

Sources said the assets such as hospitality assets and land parcels, including the marine drive property and two projects in central Mumbai. In Q1FY12, the company had sold 24 per cent in D B Hotels Pvt Ltd internally and 100 per cent stake of DB Properties Pvt Ltd.

D B Hospitality operates 900 rooms in four hotels. The properties in Mumbai and Ahmedabad are managed by Hilton Worldwide. They have one hotel in Rajasthan and one in Goa. The company plans to operate 2500 rooms in the next four years. It is also working on setting up five properties with Chicago-headquartered Hyatt Hotels Corporation. The properties will come up in Mumbai, Pune, Mundra (Gujarat) and Goa.

D B Hospitality Limited, Mauritius (DBHLM), owns 100 per cent of the hospitality arm DB Hospitality Pvt ltd. The promoter’s have pledged 27 per cent shares of DB Hospitality Pvt Ltd. Their 5.8 crore equity share holding is lying in an escrow account with ICICI Bank Limited for securing a loan of $138 million by the parent hospitality arm.

DB Realty has booked sales of 0.6 msft for the first quarter of this finanical year, where transfer of development rights or TDR sales have contributed to 0.5 msft and apartment sale of 45-50,000 sft.

Unitech profit drops, DB Realty net rises

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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, Lavasa hill city, DB Realty, Shahid Balwa, UnitechUnitech Ltd, India’s second largest real estate company, and DB Realty Ltd continued to struggle with sales in the June quarter amid rising interest rates and slowing demand—a seemingly unceasing plight they share with most of the sector.

Unitech’s consolidated net profit dropped 11% over the March quarter to Rs.98.36 crore. DB Realty boasted of a five-fold sequential surge in profit to Rs.41.2 crore but much of this came from its sale of non-core assets.

Experts, however, believe as most realty companies have reported drop in profits, the developers will bank on the festive season to register healthy sales.

Unitech’s revenue for the three months ended 30 June dropped 43.47% to Rs.595.85 crore over the March quarter.

“The company has been able to achieve sales bookings of over Rs.1,000 crore during the quarter in a challenging environment of rising interest rates owing to its attractive product offerings targeted at affordable/mid-income housing segments and intense sales effort,” Managing Director Ajay Chandra said on Friday, August 12.

Unitech’s biggest challenge seems to be delivery with the huge amount of execution challenge they have taken on themselves with 40 million sq. ft under construction. The company sold 1.9 million sq. ft of space for about Rs.1,020 crore between April and June, and has about 90 projects at various stages of construction.

On a year-on-year basis, Unitech’s profit declined 45% on a 28% fall in revenue. It reduced debt by Rs.203.68 crore to Rs.5,300 crore in the June quarter. DB Realty’s profit increased to Rs.41.2 crore from Rs.8.1 crore in the March quarter, largely because it earned nearly Rs.250 crore from selling non-core assets, including a stake sale in a south Mumbai property. Revenue dropped to Rs.221.5 crore from Rs.391 crore in the March quarter.

“Rising interest rates and input costs coupled with delayed approvals have resulted in a slowdown in the sector,” said N. Shridhar, Group Director, business and strategy. Year-on-year, the developer’s profit fell 33% and revenue dropped 16.38%.

Top executives of both Unitech and DB Realty are in jail pending investigations into alleged irregularities related to the allocation of second-generation (2G) telecom spectrum.

Unitech Managing Director Sanjay Chandra is also a Director at Unitech Wireless. DB Realty’s Shahid Balwa and Vinod Goenka were also promoters of Etisalat DB, a joint venture between Abu Dhabi’s Etisalat and DB Group.

DB Realty reduced its debt by about Rs.150 crore in the June quarter to Rs.242.5 crore. Shridhar said the company will reshuffle its portfolio and evaluate the sale of non-core assets to improve margins. Between April and June, DB Realty sold about 594,000 sq. ft of space including transfer of development rights (TDR) at a sales value of Rs.187.6 crore.

DB group drags Etisalat to CLB

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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, DB Realty, EtisalatThe DB group, Etisalat’s partner in India, has moved the Company Law Board (CLB) against the UAE-based company. In a filing before the Mumbai bench of CLB, the DB group accused Etisalat of operational mismanagement and delay in rolling out services. The complaint has been filed by a DB group promoter company, Majestic Infracom.

Majestic alleged that Etisalat did not fulfil the obligations which were agreed upon when the venture was formed. DB Realty officials declined to answer any queries, saying the complaint had been filed by a promoter group company.

This is the second telecom venture whose partners have picked up a fight. Telenor and Unitech are already battling over the former’s plan to go ahead with a rights issue for their joint venture company.

For Etisalat DB, this is a double blow, as it comes just three days after the Enforcement Directorate (ED) fined it a massive Rs 7,100 crore for violations of foreign direct investment norms. ED said Etisalat DB broke the law that a foreign entity’s investment in a telecom company should be approved by the Foreign Investment Promotion Board when it crosses 49 per cent. The company has been asked to clarify its stance or pay the fine.

Etisalat is also embroiled in the 2G scam on multiple accounts, one of them being the irregular allotment of telecom licences in 2008. These licences were bagged by the DB group, which later sold a 45 per cent stake to Etisalat for $900 million (Rs 3,987 crore).

Etisalat DB, which was earlier called Swan, was also alleged to be a front for the Anil Dhirubhai Ambani group. A telecom company cannot have more than 10 per cent stake in another operator in the same circle.

Etisalat DB has 1.3 million subscribers in 15 circles. Its market share is 0.15 per cent.

“The proceedings served on Etisalat DB today by Majestic and Shahid Balwa are wholly baseless. This is a cynical tactical move by parties charged with major corruption offences to shift attention away from their own situation and to disrupt the proper running of Etisalat DB to the detriment of its shareholders and customers,” Etisalat said in an emailed statement. Majestic Infracon, a company controlled by Balwa and Vinod Goenka, owned some 45.73 per cent of Etisalat DB while Etisalat owned 44.73 per cent.

Bail pleas of Shahid Balwa & Asif Balwa dismissed

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Shahid Balwa, Asif Balwa, 2G Spectrum Scam case, Swan Telecom, DB Realty, Rajeev Agarwal, real estate news india, realty news india, property news india, Kusegaon Fruits and Vegetables, Conwood Construction, Kalaignar TV, Kanimozhi, KarunanidhiA Delhi court on Tuesday dismissed the bail pleas of Swan Telecom promoter Shahid Usman Balwa, his cousin Asif Balwa and their associate Rajeev Agarwal in the 2G spectrum allocation case.

“All the three bail pleas are dismissed,” Special CBI Judge O P Saini said.

Asif and Rajeev are the directors of DB Realty group firm – Kusegaon Fruits and Vegetables Pvt Ltd which was allegedly used in a “circuitous manner” for transfer of Rs.200 crore as a kickback to DMK-run Kalaignar TV Pvt Ltd.

They are accused of playing key roles in the transfer of Rs.200 crore bribe to Kalaignar TV through various firms promoted by Shahid Usman Balwa.

Shahid was arrested on February 8 while Asif and Rajeev were arrested by the CBI on March 29 and they are currently in Tihar Jail.

Rajeev is also the director of Conwood Constructions and Developers Pvt Ltd (a partner of Dynamix Realty).

Shahid allegedly is direct beneficiary of the 2G spectrum allocation scam with his firm Swan Telecom having been alloted the spectrum licence as per a criminal conspiracy hatched by him along with former Telecom Minister A Raja and others.

While opposing the bail pleas of the trio, Special Public Prosecutor U U Lalit had submitted that Dynamix Realty acquired 49 per cent shares in Cineyug Films Pvt Ltd (held by co-accused Karim Morani) only subsequent to the transfer of the bribe money and they all were the umbrella companies of DB Realty.

He had also rebutted the submission of the defence that the alleged “illegal gratification” of Rs.200 crore was actually for the shares of Kalaignar TV and the same was called back after the valuation of the share was higher than assessed and Rs.200 crore would not have fetched good shares.

IL&FS, DB Realty & Rural Development Ministry – Its all in the family

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By Ashok Wankhade

Track2Realty Exclusive-III

IL&FS, DB Realty, A Raja, Telecom Scam, 2G Spectrum Scam, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Mumbai Real Estate, India PropertyIn an obvious chain of patronage IL&FS, the company which gets the contract opts for Sanganer project Rajasthan from where Arvind Mayaram’s mother Indira Mayaram has been contesting Assembly elections and Mayaram and family has farmland there.

The second contract goes to the then Rural Development Minister C P Joshi’s constituency Rajasamand and the third in Uttarakhand where Mayaram family has benifitted from their N D Tiwari connections. The Trust Anirudh Mayaram Foundation registered on 7th June 2005 gets a corpus grant of Rs 11 Lakh from the Uttarakhand Government in which Arvind Mayaram is the Member Secretary.

Doesn’t this prove that the Inter-Ministerial Empowered Committee which has done the appraisal has also been kept in dark and manipulated by the Financial Advisor and Additional Secretary of the Department?

No probe has been ordered into the link between IL&FS and the DB Group where IL&FS invested pre-IPO and then had the impudence to place its executive director, Shahzad Dalal as an “Independent Director” with DB Realty. He quit in a heart-beat once the arrest of  Shahid Balwa came to light in the 2G Scam. IL&FS was also a lender to Raju’s of Satyam and they used the Company Law Board to take over the shares of Maytas, overlooking minority shareholders.

Incidentally, Member of Parliament Sumitra Mahajan, who is also the Chairperson of the Standing Committee of Parliament on Rural Development, has also written to the Rural Development Minister Vilasrao Deshmukh pointing to the favour by the senior official of the ministry to the IL&FS.

In the letter Mahajan says that IL&FS Company was favoured by senior bureaucrats of the ministry because the close relative “is working with M/s IL&FS”.  Requesting Deshmukh to look into the matter personally, Mahajan says, “if it is true, then it is clear violation of Rule 4 of the Central Civil Services (Conduct) Rules 1964, which indicates that the civil servant cannot give contract to a company where his/her close relatives are working”.

But despite the emergence of the fact that IL&FS had invested in scam tainted DB Realty the Rural Development Ministry has continued to carry on its partnership with the infrastructure and finance company.  Reports suggest that more projects are in the pipeline which would be awarded to IL&FS under the Public Private Partnership (PPP) scheme of the government for the country’s rural areas.

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