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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.

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.”

Delta Corp buys 51% stake in Thunderbird’s Daman Hospitality

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Daman Hospitality, ICICI Ventures, Thunderbird Resorts, Delta Corp, Euronext Amsterdam, Rakesh Jhunjhunwala, Zia Jaydev Mody, Soli Sorabjee, Jaydev Mody, Piramal Construction, Delhi NCR real estate, Bangalore Real Estate, 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, moneycontrol.com, indianrealestateforum.com, Mumbai Real Estate, India PropertyICICI Ventures-backed Delta Corp has acquired 51 per cent stake in Daman Hospitality Pvt Ltd for Rs.50 crore in its second acquisition this year. Daman Hospitality is in the process of building a five star deluxe resort in Daman and Delta Corp will pitch in with Rs.40 crore more as debt for the project.

Daman Hospitality is the Indian affiliate of NYSE Euronext Amsterdam-listed Thunderbird Resorts. Thunderbird will continue to own the balance 49 per cent in the company, along with original Indian partners, while Delta will be responsible for securing any new debt for the project. Thunderbird is into branded casino and hospitality services and focuses on markets in Asia and Latin America, with operations in Costa Rica, Nicaragua, Peru and the Philippines. It will now run the upcoming Daman hotel with a management contract.

As a part of the deal, Delta will subscribe to 840,000 shares of Thunderbird at a price of $2 per share or around $1.68 million. This deal is to be completed by May 31.

Daman Hospitality resort is expected to feature 176 rooms, besides a vast spread of indoor and outdoor entertainment area and a shopping arcade. The project is substantially completed and is expected to be ready in another 6-8 months. Delta plans to operate a casino in the upcoming project as part of its business model of combining hospitality and gaming.

This happens to be the second deal in four months. In February this year, Delta said that it was acquiring a majority stake in Marvel Resorts Pvt Ltd for up to Rs.54 crore ($12 million) to strengthen its position in the offshore and onshore casino space in Goa, one of the top Indian tourist destinations.

The deal may involve stake purchase of anywhere between 67-100 per cent and the transaction value will accordingly range between Rs.36 crore and Rs.54 crore. As part of the transaction, Delta will also assume the debt lying in Marvel.

Marvel owns approximately two acres in the capital city of Panjim, Goa, and has approved plans for a five star hotel to be built on the same land parcel. With the acquisition, Delta proposes to develop a land-based casino in the five star hotel. Delta Corp is acquiring the stake through its subsidiary Delta Hospitality and Leisure Pvt Ltd.

Moreover, the company has recently acquired MV Horseshoe Casino from Harrah’s Corp Inc., which runs Caesar’s Palace in Las Vegas, and the move will boost its offshore casino business. It will treble Delta’s 725 existing gaming positions to 2,225 by end of June when it is expected to arrive in India.

Delta Corp had raised Rs.285.48 crore last year through a mix of shares and equity convertible warrants issue to a group of largely individual investors, including ace investor Rakesh Jhunjhunwala and his wife.

Although it was originally a textile firm, the company had undergone a business restructuring over the last two years and became a hospitality and real estate player by demerging its textile business to Arrow Textiles.

The largest shareholder of Delta Corp is Zia Jaydev Mody (one of the top corporate lawyers of the country and daughter of Soli Sorabjee) who is married to Jaydev Mody who in turn is related to the Piramals and has been engaged in the real estate sector.

ICICI Venture bought 14.99 per cent in Delta (then Arrow Webtex) for Rs.82 crore at a price of Rs.40.5 per share. Since then, its holding has whittled down to just over 7 per cent due to subsequent issues and some share sale in open market transactions. Another investors in the company is BCCL (through Brand Equity Treaties Ltd).

Delta Corp owns two offshore Casinos in Goa – Casino Royale and King’s Casino. It also owns a large minority stake in Advani Hotels & Resorts which, in turn, owns Ramada Caravela Beach Resort and also operates offshore Casino Goa on board MV Caravela.