Tag Archives: DLF India

DLF sells 28-acre plot to M3M India for Rs 440 crore to cut debt

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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, competitions commission of india, CCI, DLF Belaire, DLF IndiaDLF has sold a 28-acre plot in Gurgaon to M3M India for Rs.440 crore, in the first among many such big-ticket sales it has lined up this fiscal to bring down mounting debt.

Sources close to the deal said the plot in Gurgaon has all approvals and permission for a group housing project.

M3M, which beat Tata Realty and Mahindra in the race for the land, has reportedly paid around Rs.150 crore to DLF. The balance will be paid within a month. The source said M3M is financing this buy though internal accruals.

The DLF spokesperson declined to comment on the deal. But a senior company executive, requesting anonymity, confirmed the deal was sealed on Thursday. A spokesperson for M3M said the company had been talking to DLF to buy the land, but did not confirm if the deal had been closed.

India’s biggest real estate company has been trying to sell a bunch of non-core assets that includes land parcels, special economic zones and IT parks, and its Aman Hotels chain, barring the marquee hotel in central Delhi, to raise around Rs.7,000 crore over the next two years.

The proceeds will be used to reduce the company’s mounting debt, which stood at Rs.21,524 crore as on June 30, 2011. Rising interest rates have made debt reduction more difficult.

In the quarter ended June, the company stepped up efforts to sell non-core assets, and was able to raise Rs.165 crore by selling smaller assets.

In a recent analyst call, the company’s Executive Director, Saurabh Chawla, said DLF will close two non-core asset sale deals within this quarter.

Share sale in one IT park in Noida and one SEZ in Pune, in which it has joint venture partners, is also expected to close this year. The combined sale by DLF and co-promoters is expected to generate Rs.1,300 crore.

Blackstone is the likely buyer of the IT SEZ in Pune for Rs.900 crore while a private equity fund is close to sealing the deal for the Noida IT Park for Rs.400 crore. The company is also trying to sell a number of land parcels in Hyderabad, Kolkata and Chennai.

DLF gets CCI rap again over project violations, no penalty imposed

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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, competitions commission of india, CCI, DLF Belaire, DLF IndiaThe competition watchdog Competition Commission of India (CCI) on Tuesday, August 30, found realty developer DLF guilty of abusing its dominance at one more project, the Park Place in Gurgaon and has asked the developer to cease and desist from imposing unfair conditions on buyers. The order also directs DLF to suitably modify the unfair conditions imposed on existing buyers within three months.

However, the order has not slapped any additional penalty on DLF apart from Rs.630 crore that was imposed in the case of the Belaire project a fortnight ago.

“DLF will consider legal options, including moving the Competition Appellate Tribunal,” said Rajeev Talwar, Group Executive Director at DLF. In the Park Place matter, CCI found DLF guilty of commencing the project without proper approvals, increasing the number of floors mid-way, not following the time schedule for completion and possession and forfeiture of booking amount upon any cancellations.

In the Belaire project case too, the CCI had found DLF guilty on similar issues and had slapped penalty amounting to 7% of the realty developer’s average annual revenues of the last three years. The buyers in the Park Place project of DLF are planning to file for compensation with the Competition Appellate Tribunal (CAT) for delays in possession.

“We should get compensation at the same rate equal to what DLF charges for delayed payment,” said Harsh Sehgal, President of the Park Place Residents Welfare Association. DLF charges 18% interest if buyers delay their payments. On the other hand, the company pays Rs 10 per sq ft to the buyers for delay on its part.

“That amounts to only about 1-2 % of the total value of the apartment,” he said. “We will also be asking for restoration of all cancelled apartments apart from compensation for all original allottees for increasing the height of the building from 19 to 29 floors,” said Sehgal.

DLF had increased the number of apartments from 988 to 1,508 by increasing the number of floors across 13 towers in the Park Place project. The buyers in the Belaire project too are considering filing for compensation with CAT, said Amit Jain, Financial Head of Belaire Residents’ Association.

In its order on Tuesday, the commission did not put any additional penalty on DLF.

“We did not levy additional penalty on DLF as we can’t fine them twice for the same contravention,” said a senior CCI official requesting anonymity.

“We bunched together all the complaints against DLF relating to this project (Park Place) and have given an order, which is similar to the earlier one (referring to DLF’s Belaire project).”

The CCI order said the nature of contravention was identical to the previous case (Belaire project) and, therefore, the majority order stated, “It will not be appropriate to separately impose penalty again under this clause.”

The clause referred to is Section 4 of the Competition Act, which deals with abuse of dominant position. When asked what options do buyers of flats in projects of other developers have, the senior official said that they can file a complaint with CCI, after which it will initiate action against companies. In its earlier order, CCI stated the terms of the conditions found in the flat buyer agreement is an industry practice.

10 more cases against DLF pending with CCI

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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, competitions commission of india, CCI, DLF Belaire, DLF IndiaIt seems the Competition Commission of India (CCI) ruling on the DLF to pay penalty has opened the can of worms. If sources in the CCI are to be believed at least 10 anti-trust complaints against India’s largest real estate company DLF are pending with the regulator.

The latest complaint was filed a couple of days before CCI’s Rs 630-crore fine on the company last week, which followed a petition from those who had purchased residences at DLF’s The Belair complex in Gurgaon. The latest complaint too, interestingly, pertains to The Belaire.

The complaint, filed by two London-based NRIs, alleges that due to a delay in payment of instalments, DLF cancelled their allotments in The Belaire and forfeited the booking amount of around R20 lakh each.

The DLF spokesperson refused to comment on the development.

“The NRIs say DLF had misused its dominant position by cancelling allotments arbitrarily. There is a competition angle in this case,” a CCI official told Track2Realty on condition of anonymity. He, however, said that the commission is yet to take a prima facie view on the case and a decision to that effect would be taken soon.

The CCI official though admitted that the Commission is soon to take up 10 more similar cases pending against DLF.

According to this official, these matters pertain to various issues covered under Section 4 of the Competition Act 2002, which deals with abuse of dominant market position.

Official sources also said the Commission could also initiate a probe against other real estate developers to unearth similar anti-competitive practices.

“DLF does not work in isolation in a market like this. It would suggest that other realtors could also be following similar practices,” the source said. According to him, since passing the DLF verdict, the Commission has received up to 40 consumer complaints against real estate companies across the country.

DLF posts net profit at Rs 466 cr in Q3 FY11 results; revenue at Rs 2594 cr

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Indiabulls real estate, BSE, Bombay Stock Exchange, Mumbai Real Estate, India Property, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, KP Singh, DLF, Unitech, Emaar MGF, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.comIndiabulls real estate, BSE, Bombay Stock Exchange, Mumbai Real Estate, India Property, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, KP Singh, DLF, Unitech, Emaar MGF, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.comDLF Limited, India’s largest real estate company, recorded consolidated revenues of Rs 2,594 crore for the quarter ended December 31, 2010, an increase of 21% from Rs 2,151 crore in the Q3FY10. EBIDTA stood at Rs 1,292 crore, an increase of 33% as compared to Rs 969 crore in the corresponding period last year. Net profit was at Rs 466 crore, as compared to Rs 468 crore in Q3FY0. The non-annualised EPS for the quarter was Rs 2.74

The Company’s focus on achieving stable growth, strong execution across all projects and cash flow maximization continued and strengthened in the quarter under review. With a host of new launches scheduled by the Company in the near future it is expected that the Company’s business plans shall remain largely on track and the Company shall benefit from the growth being witnessed in the Indian economy.

However, with inflation becoming a serious concern and due to the inadequate supply side measures, it is feared that overdependence on monetary policy alone to bring inflation to reasonable levels could result in a sharp deceleration in economic growth. The Company, therefore remains cautious in its near term outlook while maintaining its medium and longer term strategic intents.

The leasing segment continues to witness reasonable volumes albeit at moderate rental levels. A gradual upward trend has been witnessed in this segment of the Company’s business on a Q/Q basis and the Company remains hopeful that this momentum shall continue in the future as improving conditions in the Western Economies lead to better prospects for the Indian knowledge industries who are a key occupants and users of the Company’s commercial office spaces.

The residential business volumes shall continue to grow as more and more product offerings are introduced in the marketplace in the near term. The Company’s focus on margin protection shall continue and due moderation in volumes if so required will be undertaken. The Company’s execution capabilities are now strongly contributing to its business performance across the country.

On the divestments, recovery actions are proceeding as per plan. During the Quarter, the Company divested Rs. 403 crore of non-core assets and till date, the divestment amount stands at Rs. 2,900 crore against a target of Rs. 4,500 crore (ex-wind power).

With a  view to further its business operations and with the opportunities available to consolidate land holdings in the Company’s existing projects, significant levels of investments in new land was undertaken in the quarter under review. Along with capex, the total amount exceeded approximately Rs 500 crore in the quarter. Consequently, in the near term due to the aforementioned investments and the delay in new launches, net debt has witnessed a marginal rise in the quarter. However, the Company expects that with the slew of new launches planned and its operations providing for ongoing investments on a steady basis, debt would steadily reduce to moderate levels in the medium term.

Kumari Selja blames banks for discouraging affordable housing

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By: Jaswinder Singh

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 delhiKumari Selja, Union Minister of Housing and Urban Poverty Alleviation & Minister of Tourism, has categorically blamed the banks for not facilitating the affordable housing. Inaugurating the 10th National Convention of National Real Estate Development Council (NAREDCO) at New Delhi the minister said the housing finance sector has witnessed a boom in the recent past due to favorable government policies. Despite this, the affordable housing remained a “distant dream” for the poor because of banks’ reluctance to give credit to this section of society for various reasons.

“A boom in housing finance has been witnessed due to supportive government policies and economic growth. Despite this boom, affordable housing remains a distant dream for the Economically Weaker Sections (EWS) and the Low Income Groups (LIG) of our society. Housing finance companies (HFCs) and banks hesitate to serve the low-income market for a variety of reasons such as inability to assess credit worthiness, uncertain cash flows and lower profits,” Kumari Selja said.

“To make a dent on the mega deficits in housing sector, involvement of scheduled banks, housing finance institutions and refinance organizations are essential, otherwise the quantum of funding would remain negligible,” she added. The minister also said that the government was working on developing a mechanism to allay the fears of banks/ HFCs in extending long term home loans to the poor.

“My ministry is in the process of innovating and recommending appropriate risk mitigating instruments to allay the fears of banks/HFCs in extending long term home loans to the poor. It is expected that with a hedge fund to cover risk in title instruments, more financial institutions would come forward. This would foster the goal of inclusive growth of the downtrodden sections of the society,” Kumari Selja said.

As per the report of Technical Group constituted by the Ministry of Housing and Urban Poverty Alleviation, the total urban housing shortage including the backlog and additional requirement would be 26.53 million dwelling units by the end of the 11th Five Year Plan period. 99% of this shortfall would be for economically weaker section and the low-income group segment, which contributes to squatting and slum formation.

“To meet this huge housing shortage, an investment of more than Rs. 6 lakh crore is estimated for construction of houses and related infrastructure, which will require significant contribution from central government, state governments and private stakeholders,” the minister suggested.

Kumari Selja also emphasized on the need of developing greener and environment friendly buildings for sustainable development. “There is a need to adopt appropriate, cost-effective building materials and technologies for affordable, strong, durable, functional and aesthetically pleasing houses. Technologies, which are environment friendly, ecologically appropriate and energy saving should be increasingly adopted for the purpose. It is important to focus on Green Building Technologies for sustainable development, she said.”

Speaking on the occasion Mr. Rohtas Goel, President, NAREDCO, said, “Demand for housing in India is huge. At a rough estimate, approximately 30 million houses are short in urban areas. Approximately 93 million people are living in slums. With economy growing at 8 -9 percent, more migrations are expected in future. The forecast is that urbanization level in India will grow to 40% by 2030 and 50% by 2040, from 28% at present. This is going to throw a huge potential as also a challenge for the housing industry.”