Tag Archives: DLF News

Kamla Landmarc Construction buys out IPL team

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DLF news , IPL news, BCCI news , india property news , property news , Ravi SinhaTrack2Realty-Agencies: Mumbai-based real estate firm Kamla Landmarc Construction is the new owner of the Hyderabad-based IPL team Deccan Chargers. The deal was finalised by Jitendra Jain-promoted Kamla Landmarc and T Venkattram Reddy’s Deccan Chronicle Holdings (DCHL) over the last few days. The size of the deal is yet to be confirmed.

In an announcement at the Bombay Stock Exchange, DCHL said, “Pursuant to its Meeting of the Board of Directors held on October 11, 2012, it was resolved to authorize the Board of Directors to sell, transfer/ dispose off the Deccan Chargers Franchise business undertaking(s)/ business division of the Company to Kamla Landmarc Real Estate Holdings Private Limited.”

The company said it has approved the draft memorandum of understanding placed before the Board of Directors at its October 11 meeting. The company, however did not disclose the details of the financial.

Jitendra Jain, Managing Director of Kamla Landmarc, could not be reached for comments. According to industry sources the talks were on for a few days and the deal got finalised over the last couple of days.

DCHL shares reacted immediately and jumped 4.9 per cent on the news and were trading at day’s high of Rs 9.6 per share on Friday, Oct 12.

Barely a month ago, Deccan Chargers owners DCHL rejected a Rs 900 crore bid from a film production company PVP Ventures. BCCI had said that both the price and the terms of the payment were not acceptable to them.

Stressed under high debt of over Rs 4,300 crore, DCHL has been looking to raise funds in order to meet its liabilities. It recently defaulted on its payments to some financial institutions.

The owner of the IPL team Deccan Chargers, Deccan Chronicle Holdings Limited (DCHL), is under the risk of losing its IPL franchise if it fails to cough up the Rs 100 crore bank guarantee to the Board of Control for Cricket in India (BCCI), said a banker close to the development.

“This is an irrevocable and unconditional bank guarantee towards the expenses for IPL series-6 including making payments to BCCI to players and support team costs. If DCHL fails to come up with the guarantee its IPL contract could be revoked,” said the banker. The 6th edition of the IPL is expected to be played out in April-May next year.

DCHL was on October 1 directed by the Bombay High Court to submit the bank guarantee by October 9. The high court observed that the BCCI’s earlier decision (made in September) to terminate the Deccan Chargers IPL franchise was taken in haste.

The direction was passed by Justice S J Kathawala while hearing a petition filed by DCHL challenging BCCI’s decision to terminate the contract of cash-strapped Hyderabad company.

On October 9, at the request of DCHL, the high court granted the company three more days to come up with amount. The guarantee is expected to be in force for a period of one year.

DCHL is currently said to be in talks with some banks to win the guarantee. An official from an existing private sector lender to DCHL said that if they were to lend to the company, the bank would expect a quid pro quo for taking further loan exposure in the debt ridden company. “We will ask for favourable terms during the settlement of dues or claims or any other quid pro quo measures,” the official said.

Another source said that in all likelihood it is a private bank which is willing to give a guarantee and not a nationalized bank. “The management is planning to move a petition in the court to raise bank guarantee and is in talks with ICICI bank for the same,” the source added.

Some public sector bankers say that they are awaiting a forensic report from Canara Bank before undertaking further proceedings or exposures with the bank. According to sources T Venkattram Reddy, Chairman, has pledged most of his movable and immovable properties even while the value is yet to be ascertained, “We are awaiting the forensic audit report and will then initiate legal action against the management” said a public sector banker.

The consortium of 21 lenders to the debt-ridden media company late last month failed to reach a consensus on admitting DCHL into the CDR cell. The lenders have an exposure of around R4,100 crore to Hyderabad based DCHL, which has been looking for easier terms to repay its borrowings. The empowered group of the corporate debt restructuring (CDR) cell will meet again on October 19, when the Deccan Chronicle Holdings Limited (DCHL) case will be taken up for discussion.

ICICI Bank has the largest exposure at Rs 490 crore, followed by Axis Bank at Rs 400 crore, Canara Bank at Rs 330 crore, Andhra Bank at Rs 200 crore, YES Bank at Rs 175 crore, IndusInd Bank at R100 crore, Kotak Mahindra Bank at R100 crore, Indian Overseas Bank at Rs 100 crore, Corporation Bank at Rs 100 crore, amongst others.

Some non-banking lenders include Religare Enterprises with an exposure of Rs 150 crore, Future Capital at R150 crore, SBI Pension Fund at Rs 50 crore, IFCI at Rs 27 crore etc.

DCHL’s revenues in the year to March 2012 stood at Rs 869.4 crore while the firm posted a net profit of Rs 61 crore. In the previous year, the revenues stood at Rs 1030.91 crore and profit was Rs 163 crore.

DLF may not extend IPL’s sponsorship

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By: Ravi Sinha

Track2Realty Exclusive

DLF news , IPL news, BCCI news , india property news , property news , Ravi Sinha  Realty major DLF may not extend sponsorship to the Indian Premier League (IPL) after its first five-year deal expires this year. According to DLF sources, they have conveyed this to the Board of Control for Cricket in India (BCCI).

DLF has been the prime sponsorship to the IPL since its inception and DLF sources maintain they would like to exit IPL this year due to the declining viewers’ interest, as reflected in year-on-year TRP (Television Rating Point) chart.

“Situation has been very different when we had signed the IPL sponsorship five year back. Now that our prime objective of taking DLF homes across the country has been fulfilled, it is time to review the deal. We feel that IPL is also getting controversial with negative media reports of cricketers neglecting national duty for IPL,” said a DLF official requesting anonymity.

The BCCI has also maintained that they will throw its doors open again to corporates and brands for Season Six in 2013.

“All sponsorships and partnerships come to end this season,” confirmed Sundar Raman, CEO, IPL.

The big question remains—whether the BCCI will be able to get a big ticket sponsorship like DLF next time around? In the wake of BCCI toning down to its national sponsorship Sahara Group, in the absence of high ticket sponsorship, it looks highly unlikely.

The BCCI sources, however, assert their marketing whiz kids will be on an overdrive inviting new sponsorship/ partnership proposals for the Twenty20 extravaganza.

“That is because its sponsorship/ partnership agreements — that began in the inaugural season in 2008 with guaranteed revenue far in excess of $100 million — is all set to grow many times this year,” said as BCCI source.

However, Track2Realty has learnt that the IPL is trying it best to renegotiate with India’s largest real estate developer DLF to come on board again for the second half of the first ten years which the first eight franchises successfully bid in 2008.

The Delhi-based DLF, Deutsche Bank and Emeralds Telecoms had made an unsuccessful bid to be among the first eight franchises, but subsequently DLF struck a title-sponsorship deal for five years at $50 million. GMR Holdings became the Delhi franchise.

Five years ago the IPL signed five-year partnership agreements with Hero Honda as associate partner for $22.5 million, PepsiCo as official pouring partner for $12.5 million, Kingfisher as umpires partner for $26.5, ITC as hotel partner and with Kingfisher as airline partner (50 per cent discount plus customised routing and charters).

Apart from the media rights that is with Multi Screen Media (MSM)/ SET MAX, the agreements with DLF, Hero Honda (now Hero Moto Corporation), PepsiCo, Kingfisher, Vodafone (telecom partner), Karbonn Mobiles, Citi (banking partner), and Volkswagen formed a substantial part of the central sponsorship pool and 60 per cent of this money was distributed to the franchises.

Indian cricket has taken a hit following its dismal showing in England and Australia.

IPL as a brand itself suffered because of the alleged abuse of position and embezzlement charges against Lalit Modi leading to his suspension as Chairman of the high-profile Twenty20 event. Fresh valuations post-May 2012 of the billion dollar IPL brand and also of the nine franchises will eventually determine the power of the BCCI to market its money-spinning property.

Kolkata realty goes up but policy uncertainty affect projects

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Vibrant cities for vibrant economy-VIII

By: Track2Media Intellisearch

Track2Media Rank-7

- 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 There is no doubt that the property prices in almost all the micro market of eastern city is going northwards, yet uncertainty looms large over Kolkata realty. There have been less transaction and even lesser new launches in the city, even when the state chapter of the Confederation of Real Estate Developers’ Association of India (CREDAI) demands ten satellite towns in the state. The real estate projects have been on a standstill as the developers are apprehensive of the policy of the Government post the change of power after 34 long years.

In the last one year, the city has witnessed fewer number of new project launches as compared to last year due to delay in approvals and clearances. Pradeep Sureka, Managing Director of Sureka Group and President of the Kolkata Chapter of CREDAI, says, “This year the new supply in residential segment has been significantly low as before the elections approvals had stalled and even now they are very slow.”

Sureka, like many other developers in Kolkata, is awaiting Government approval for his next set of launches. “Once we know the kind of land that we can purchase and their probable locations, we can go ahead with the projects. On an average, we are looking for 500-1,000 acre of non-agricultural land for housing development. Of course, if we are to directly buy land, the Urban Land Ceiling Act has to be removed,” Sureka pointed out.

Developers are also lobbying with the State Government for incentives to recover cost overruns. The three critical factors that will determine the Kolkata realty choice ahead are land availability, infrastructure readiness and ease of connectivity. Acknowledging the need to fast-track housing development in the state, the Urban Development Minister Firhad Hakim says the new Government required some time to assess the sector.

“We want to join hands with the industry but in a manner that is transparent. So far as infrastructure development goes, there is no two ways about the need for better infrastructure in New Town. Since we have shifted the township development authority from the Housing Department to Urban Development, we can apply for funds under the Jawaharlal Nehru National Urban Renewal Mission scheme,” said Hakim.

According to data by Jones Lang LaSalle India, (JLLI) only 4600 apartments have been launched by October 2011 as compared to 8900 in 2010. In the second quarter of 2011, the market witnessed the launch of four projects, offering only 711 new units which includes the costliest project, Atmosphere offered by Forum Group.

Though project launches have been few, the realty market unlike other parts of the country has witnessed a jump in prices by almost 15-20 per cent. Mayank Saxena, Managing Director JLLI, Kolkata says, “Post 2009, developers in the city focussed mainly on sub Rs. 20 lakh homes, but now everyone is building bigger projects and prices have increased substantially. Last year prices in Ballygaunje, were around Rs 13000-14000 per sft which has climbed upto Rs 16,000- 17000 per sft.”

Apartments in New Town, in the Rajarhat area on the fringes of Kolkata, is commanding a price tag of Rs 3500- 5000 per square feet (per sft), while in the posh Ballygunj and Alipore areas, prices are hovering in the range of Rs 12,000-17,000 per sft. In the upcoming area of the E M Bypass, developers are getting buyers to shell out between Rs 5000-8000 per sft.

Rahul Todi, Managing Director of Shrachi Realty, part of the Rs 800 crore Shrachi Group, says, “Prices have appreciated in the city center by 15-20 per cent. Prices have not increased in any other city but the prices have largely been driven due to demand-supply gap in the city. This year only 5-10 significant projects have been launched and we expect the situation to continue like this for next few months.”

Meanwhile, property analysts believe the IT/ITeS sector will continue to lead the demand for office space followed by telecom, pharma and financial firms. Industrial growth might spur office space demand from the manufacturing and engineering sectors.

Going forward, developers expect prices to remain stable as rate hikes and unsold inventories will dominate the market in 2012. Property consultants say real estate prices in Kolkata have begun to firm up. “The second half of the current fiscal (2011) has seen many more sales and bookings compared with the first six months,” said Kaustuv Roy, Executive Director of Cushman and Wakefield. “Developers are probably betting on property prices remaining firm for the next two-three years, by which time most of these projects would be ready for possession.”

As per the data released by Liases Foras, a real estate rating and research firm, the Kolkata residential market, at present, has 15,300 unsold units of which 42 per cent inventory hails from Rajarhat and 17 per cent each from north and west Kolkata. The research has been done across 66 locations in the city and its suburbs including Hooghly and Barasat.

Pankaj Kapoor, Managing Director of Liases Foras, says, “The Kolkata property market is the smallest in size as compared to other metro markets and the market is sluggish at the moment. Though rest of the city has very less unsold inventories but Rajarhat dominates the chart.”

The real estate market in Kolkata is still in a very nascent stage but prices have started to escalated and both Unitech and DLF who have projects in the city are reporting healthy sales for its launched projects. Information technology (IT) service sector has not recovered completely thus Rajarhat is witnessing more vacancy than the other parts of the city like Alipore or Ballygaunje, the hotspots for residential realty projects at present.

Advantage Kolkata

  • Nascent property market
  • Proposed ten satellite towns
  • IT/ITeS, telecom, Pharma & financial firms
  • Growth potential due to demand-supply gap
  • Policy change with JNURM funds

DLF plans to cut debt by Rs 3,000 cr

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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, Rajiv Talwar, DLF NewsDLF plans to reduce its debt by Rs.2,500-3,000 crore by the end of this financial year, according to Group Executive Director Rajeev Talwar. The company aims to cut debt through the divestment of non-core assets, including hotels and plots of land that cannot be developed in the next five years.

DLF, which has been trying to bring down its debt for some time, reported an increase of Rs.100 crore in net debt in the first quarter of financial year 2012. Net debt touched Rs.21,524 crore in the first quarter of FY12, from Rs.21,424 crore as on March 31, 2011.

While the group has a divestment target of Rs.6,000-7,000 crore over two to three years from sale of non-core assets, it had raised only Rs.165 crore by June 30. In a presentation to analysts after the first quarter 2011-2012 results, DLF had said visibility in non-core divestment was expected by the end of the second quarter (September 30).

DLF would offload its stake in the hotel chain Aman Resorts, while keeping the Aman Hotel in Delhi with itself. Apart from Aman Hotel, earlier Lodhi Hotel, the chain has two other hospitality properties in India — Aman-i-Khas and Amanbagh — both in Rajasthan. Aman Resorts, founded in 1988 by Adrian Zecha, owns and operates a number of hotels across the world.

Talwar told Business Standard the Aman stake sale was expected to be completed by the end of this financial year. DLF refused to comment on the buzz that the Aman stake sale was nearing completion and that Khazanah, an investment arm of the Malaysian government, was looking at buying into it. Goldman Sachs and Citi group are advisors for the deal.

While DLF’s joint venture with the Hilton group was also being considered for sale earlier as part of its non-core assets, Talwar said, “We cannot offload it as it is on top of our mall (in Delhi)”. Other non-core assets to be sold include pockets of land in Gurgaon and some SEZ (special economic zone) areas across the country.

As for the interest burden, Talwar said it had risen Rs.200-300 crore in 18 to 24 months. Hit by high input cost and rising interest rate, the company’s net profit was down 12.81 per cent to Rs.358.36 crore for the quarter ended June 30 as against Rs.411.03 crore for the corresponding period last year.

The Competition Commission of India had recently imposed a penalty of Rs.630 crore on the company over charges of “abuse of market dominance and unfair trade practices”.