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CREDAI patronises Mercy Kuttan Athletic Academy on Women’s Day

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CREDAI to support the academy by providing high quality training infrastructure.

CREDAI, India Realty News, India Property news, Real Estate India, Track2Media, Track2Realty, Track2Infra, India real estate, property marketProviding the much-needed push for Mercy Kuttan’s dream, Confederation of Real Estate Developers’ Associations of India (CREDAI) has adopted the Mercy Kuttan Athletic Academy to encourage sports and train talented young women athletes of International calibre.

This gesture would decrease the stress on the financial worries and thus channelize all the academy’s energy to create world-class athletes. The academy would be renamed as CREDAI Mercy Kuttan National Academy for Excellence in Sports.

The Mercy Kuttan Athletic Academy is a non-profit Charitable Trust founded in June, 2009 with 11 students. The Academy has produced several athletes who have attained State, National and International level achievements in a span of six years since its inception.

On the association, Irfan Razack, Chairman, CREDAI-National said “CREDAI is delighted to be instrumental in bringing about this fortunate turn of events for such a noble project which has a long standing return on investments in terms of grooming Athletes of International Standards, generating employment opportunities for these women Athletes and thus eradicating poverty and empowering women to explore their potentialities.”

Indian athletes, especially women athletes from Kerala, have an amazing track record in athletics. The achievements made by yesteryear athletes in Kerala, such as P. T. Usha, Mercykuttan, Shiny Wilson etc. and current stars like Preeja Sreedharan, Tintu Luka have enhanced the awareness and interest of athletes and their parents, to aspire for a career in athletics.

Some genetic factors combined with physical stamina due to growing up in hilly terrains and the passion of creating international athletes have all culminated in the formation.

Alongside its commitment for Housing for All, CREDAI is now also focusing on build the country’s sports talent. India is known to produce high quality underlying potential, which can only be tapped to the fullest by providing them with world-class training facilities and also by giving them the opportunity to train with best-in-class trainers.

This is also a step closer to empowering women of the country and encouraging them to achieve what they desire.

Hanging sword of approvals behind project delays

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Developers’ counter view on project delays

CREDAI, India Realty News, India Property news, Real Estate India, Track2Media, Track2Realty, Track2Infra, India real estate, property marketGaurav Kapoor booked a flat in one of the newly launched projects of Delhi-NCR in early 2007. He was promised the flat would be ready for possession within three years with a grace period of six months. To play safe Gaurav even opted for a construction linked payment plan to the developer but six years have gone and he is yet to get his flat and every time he has approached the developer, various reasons for delay have been cited from macro economic conditions to funding woes and approval delays on part of the government agencies.

When Track2Realty approached the developer, he had his own share of woes and list of approval processes being delayed which would have been a matter of few weeks in normal course of time.

The policy makers seem to be determined, at least on the face value, to reform the real estate sector and create a level playing field for the buyers. The intent no doubt is good with the Real Estate Regulator Bill but in this reforms process certain grey zones have not been addressed that could have a far reaching implication on the timely completion of the project.

Developers maintain obtaining approvals is quite a tedious and cumbersome process and they are required to obtain more than 50 approvals to build a project. The process usually starts with Ownership Certificate, which should ideally take 15 days to acquire. However, this ends up taking few months.

The EIA clearance, Aviation and Archaeological Clearance may take 1 to 3 years. Then comes approval for building layout, which again takes an inordinately long time. The process of getting building permit from the Building Proposal Office should ideally take 30 to 45 days, but it sometimes extends up to six to 12months.

Afterwards, it is Non Agriculture permission, followed by “N” number of NOCs from Tree Authority, Storm Water and Drain Department, Sewerage Department, Electric Department, Traffic and Coordination Department, NOC from Chief Fire Officer, etc. Another important step is obtaining Environment Clearances. Delay in obtaining Environment Clearance has become a major deterrent for developers.

Although the government has issued a circular to clear such projects in a time bound manner, it takes more than 17-18 months to obtain environmental approvals. Apart from this, a developer has to obtain approvals for Water Connection, Permanent Sewerage Connection, etc.

Lalit Kumar Jain, Chairman of Kumar Urban Development feels it is often not even discussed that the developers reel under the ‘NOC regime’ and not ‘Approvals’ that can be revoked at the will of authorities. Revocation of stopping development at the behest of some local bodies is a reality. But currently, developers are more concerned about the unduly long approval process as the entire real estate spectrum, from developers to end-consumers, is suffering major losses from it.

“Yes, we are at mercy of authorities as far as NOCs are concerned. These officials have the power to revoke NOCs at will. And, in a way, this is also breeding corruption in the system. We need to root out all the irregularities that plague the real estate sector from flourishing. Obtaining the innumerable clearances is an issue which has been festering since a long time. It is high time we take appropriate measures to speed up the process of obtaining approvals,” says Jain.

Mohit Goel, CEO of Omaxe blames delay in project execution is substantially and mostly on account of frequent external factors that has its repercussion on delays perceived to be due to internal factors. Internal factors per se may be sporadic and very few during a project cycle. For instance, delay in getting approval leads to unintentional straying from planned project development cycle. Interrupted external factors lead to discontinuity in planned production cycle, fund blockage and cost escalation.

“Before launching a project, builders are supposed to take various approvals. While on one hand, a major chunk of the developers’ money is blocked in the land cost incurred by him, any delay would result in cost escalation to the end-user. Further, various approvals have different validity. By the time one approval comes, the other NOC/approval expires; the renewal of which further adds to the delay for developers and buyers,” says Goel.

Diipesh Bhagtani, Executive Director, Jaycee Homes also asserts no developer likes to delay the project purposely. The cost of construction escalates in terms of inflation, increased labour cost, interest on loan, maintenance of the structure or land if the project is delayed. Biggest of all the brand equity and trust of the developer is affected. There is great amount of monetary and nonmonetary losses incurred by the developer if the project is delayed for whatever reason. Hence the delay in project is seldom due to internal dynamics.

“The entire process of getting permission is tedious and complicated. A developer has a separate team of people working on procuring permission from various departments. The toughest is the permission to start work. Single window clearance is a distant dream and running from pillar to post for approvals takes away most of the time of the developer,” says Bhagtani.

Developers have been pitching for a single window clearance from a long time. They maintain if the government really wishes to reduce cost of housing then the only solution is single window clearance for all real estate Projects. They believe single window clearance is the only solution to this mess of obtaining multiple of approvals that too from different government departments.

Online approvals and single window clearances are the need of the hour as this will significantly reduce time taken to complete projects. It will also reduce red-tapism, which has been a huge obstacle to clear approvals on time.

The developers believe this system will see a rise in consumer satisfaction and speedy approvals, resulting in sale price reduction of about 10-25 per cent as it has the potential to not only speed up the time taken to complete projects, but also reduce project costs, thereby bringing in some sanity in these times of uncertainties in the market.

75% real estate projects remained non-starter as of FY 2014-15: ASSOCHAM

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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, Track2Media, Track2Realty, Track2InfraOver 75 per cent of the total 3,540 live projects with total outstanding investments worth over Rs 14 lakh crore attracted by the real estate sector across India remained non-starter as of financial year 2014-15, noted a just-concluded study by apex industry body ASSOCHAM.

“While over 2,300 projects in the realty sector remained non-starter, over 1,000 on-going projects have registered significant delay in completion,” highlighted the study titled ‘Real estate investment: State-level analysis,’ conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

“With 964 projects, domestic private sector accounted for 95 per cent share in real estate projects facing delays followed by public sector (49 projects) and foreign private companies (six projects),” noted the study prepared by the ASSOCHAM Economic Research Bureau (AERB).

“On an average, real estate projects in India are facing a delay of 33 months in completion,” said D.S. Rawat, Secretary General of ASSOCHAM while releasing the findings of the chamber’s study.

“We urge the government to pass the long-pending Real Estate (Regulation and Development) Bill on an urgent basis as it would help in resolving the key issues that are hampering the growth of the sector,” said Rawat.

Maharashtra alone accounts for over one-fifth share (21 per cent) in the total outstanding investments attracted by real estate sector throughout India followed by Uttar Pradesh (14 per cent), Gujarat (13 per cent), Karnataka (12 per cent) and Haryana (eight per cent) that are amid top five states in this regard.

Tamil Nadu and Telangana accounted for over six per cent share each in terms of total outstanding investments garnered by realty sector in the country.

Assam, Bihar, Chhattisgarh, Himachal Pradesh, Jammu and Kashmir, Jharkhand, Odisha and Uttarakhand together accounted for negligible share of less than even two per cent in the total outstanding investments attracted by the sector.

Kerala has recorded highest compounded annual growth rate (CAGR) of about 59 per cent in attracting real estate investments during the decadal period of 2005-06 and 2014-15 followed by Karnataka (40 per cent) and Uttar Pradesh (32 per cent), noted the ASSOCHAM study.

Growth in real estate investments attracted by Haryana declined by over five per cent during this period, while West Bengal registered about four per cent fall in growth by Madhya Pradesh (three per cent).

Realty projects in Andhra Pradesh are facing maximum delay of about 45 months followed by Madhya Pradesh (41 months), Telangana (40 months) and Punjab (38 months).

DLF Malls receive Sword of Honour from BSC

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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, Delhi NCR real estate, Track2Media, Track2Realty, Track2InfraDLF has received Sword of Honour from British Safety Council for 06 buildings in Delhi-NCR towards best practice in Occupational Health & Safety. DLF Malls are the only malls in Asia and Middle East which have received prestigious 5-Star Excellence Certification and sword of Honour from British Safety Council.

Sriram Khattar, CEO, DLF Rentco, said, “Sword of Honour from the British Safety Council is an overwhelming achievement for us and a testament to our passion, drive and commitment to safety.  It not only encourages us to continuously strive for excellence but also places responsibility of continued adherence to the highest safety standards. DLF has inculcated safety as a core value of its business with enriching knowledge partnerships with DuPont and Bureau Veritas”.

This is the highest grading that is awarded by British Safety Council in Occupational Health & Safety management system. The British Safety Council audited the above projects based in Delhi-NCR on 66 parameters of Occupational Health and Safety Management systems for the 5-Star rating.

DLF has received the Sword of Honour from British Safety Council for all following sites through tough screening:

1.      Emporio Mall

2.      Promenade Mall

3.      Saket Mall

4.      Cyber HUB

5.      DLF Centre

6.      Capitol Point and South Square

DLF is the first and only real estate organization in the world (in office complex infrastructure development and operation) to be awarded this prestigious Safety Excellence Award so far from British Safety Council.

The 2015 Sword of Honour scheme was open to specific business units and sites that achieved a Five Star grating in 5-Star Occupational Health and Safety Audit between 1 August 2014 and 31 July 2015. The outcome (score) of the 5-Star Audit was directly linked to the Sword of Honour process with a maximum 40% of marks (dependent upon audit score) awarded to each application.

The award ceremony will be held on at Drapers’ Hall in the City of London on Friday 27 November 2015.

The British Safety Council’s “Sword of Honour” along with 5-Star OH&S audit provides organizations with a benchmark of their safety management system against global best practices. The audit specifications were revised in 2013 to include performance measurements in additional safety management indicators (Leadership and Continuous Improvement) which are continually assessed, alongside other indicators, throughout the audit process.

HC’s directive to DLF to demolish some portions of complex in Kochi

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Track2Infra, 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 sinhaTrack2Realty-Agencies: In a blow to real estate major DLF, the Kerala High Court on Monday, Dec 8, directed it to demolish certain portions of its apartment complex, constructed on the banks of the Chilavanoor backwaters here in violation of Coastal Regulation Zone norms.

Justice A V Ramakrishna Pillai issued the direction while disposing of a petition by one A V Antony of Kochi against the construction alleging that there was violation of CRZ norms. The court directed DLF to stop all further construction as per the permit granted by Kochi corporation.

Earlier, the Kerala Coastal Zone Management Authority (KCZMA) had accused the Kochi Corporation of allegedly helping DLF to complete the construction of its apartment complex on the Chilavannoor backwaters by refusing to act on the authority?s directive not to grant building permits for constructions in CRZ areas.

In an affidavit, K K Ramachandran, member secretary of the authority, had stated that as per the CRZ notification, all constructions with an investment of Rs 5 crore or more required prior CRZ clearance from the Ministry of Environment and Forests. The construction by DLF was allowed without following the provisions of the notification.

The KCZMA said it had issued instructions to the corporation and the Ernakulam District Collector to initiate action against DLF under the Environment (Protection) Act, 1986.

As per the report that was prepared by the Centre for Earth Sciences Studies (CESS), the property of DLF fell within CRZ I (ii) and CRZ II categories. The KCZMA had directed the corporation to stop all illegal constructions in the CRZ areas. However, the corporation had failed to comply with the provisions of the Environmental (Protection) Act, it was submitted.

The construction had been undertaken after reclaiming ‘wetland pokkali field’ which had been classified as CRZ I (ii) areas as it was an ecologically fragile area.

DLF plans to launch REITs next fiscal; earns Rs 2,100 crore annually as rental income

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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, Delhi NCR real estate, Track2Media, Track2Realty, Track2InfraTrack2Realty-Agencies: India’s largest realty company DLF said on Saturday, Nov 15, it plans to launch the Real Estate Investment Trusts (REITs) next fiscal to monetise its commercial assets and is in talks with global players for partnership.

In an analyst presentation, DLF said it is targeting to “create one or more sizeable REIT platform next year – one for office and the other for retail– to recycle capital for further growth and spin off the RentCo (its rental business arm) attributable debt”.

The company has strong a portfolio of office and retail properties from which it at present earns about Rs 2,100 crore annually as rental income.

DLF seeks to create long-term free cash flows in the form of dividend flows as holders of REIT units and fees from the management of the trust.

Later in the conference call with analysts, DLF said that it did not want to “speculate” whether its REITs plan would be affected by the market regulator SEBI order barring company and six others for accessing the capital markets for 3 years.

DLF, however, said that REITs would be launched at a subsidiary level.

“We are in a dialogue with number of global players for strategic and financial partnership for REITs,” DLF Executive Director (Finance) Saurabh Chawla told analysts.

Stating that the REIT platforms is likely to launched in early part of 2015-16 fiscal, he said REITs could be a “game changer” as the business trust would the company in unlocking value of commercial assets, besides aiding spin-off of debt and creating long-term free cash flows in dividend form.

When asked whether the SEBI order would be applicable on REITs, DLF Chief Financial Officer (CFO) Ashok Tyagi said: “We would not like to speculate on that”.

Chawla said REITs would anyway “happen in the subsidiary”, but he expected clarity from Securities Appellate Tribunal (SAT) on SEBI order by the time company come up with REITs.

The objective of launching REIT would be to maximise the assets’ present value and capture the immense potential of growth that a growing Indian economy has to offer, DLF said.

In September, market regulator Sebi had notified norms for listing of business trust structures, REITs and InvITs ( Infrastructure Investment Trust), that would help attract more funds in a transparent manner into realty and infrastructure sectors. These trusts would get tax incentives.

As growth cycle in office and retail segments of RentCo business improves, DLF said, it is reviewing all options so that the company not only maintains its leadership position but also harnesses the growth that the market shall offer.

“To achieve the above, the company is exploring partnership with other global players, both strategic and financial partners, who may have an interest in participating with DLF in this foray. This could include encashing company’s part investment in RentCo business,” the presentation said.

Tyagi clarified that another proceeding by Sebi against the company is not a new case but is related to the same case where the regulator had passed the order barring DLF from accessing the capital market.

“This is not a new case. It is the same case,” he said.

DLF earlier said SEBI had “issued a (SCN) show-cause notice dated August 28, 2013 under Sections 15HA and 15HB of the SEBI Act, 1992 and under Rule 4 of the SEBI (procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995, hearing on which has been completed and the company has filed its written synopsis/submissions”.

“The order from SEBI on the said notice is awaited,” it had added.

Asked about the conversion of Compulsorily Convertible Preference Shares (CCPS) held by its promoters as the deadline for same is March 2015, DLF CFO Tyagi said: “There is still 4 months time. Let’s see”.

Chawla said that these CCPS can be converted into equity. Post conversion of CCPS into equity shares, DLF promoters will have 40 per cent economic interest in DLF’s commercial arm DLF Cyber City Developers Ltd.

In late 2009, DLF had announced merger of its subsidiary DLF Cyber City Developers with promoters firm Caraf Builders & Constructions, the holding company of DLF Assets Pvt Ltd.

It had also said that post merger, DLF would have 60 per cent stake in DLF Cyber City and the residual 40 per cent economic interest would be held by the shareholders of Caraf.

DLF Cyber City Developers had then issued CCPS worth Rs 1,597 crore to the promoters.

Meanwhile, DLF expects to achieve sales booking guidance of Rs 3,500-4,000 crore for this fiscal on the back of three new launches of projects in Delhi and Gurgaon markets.

However, the company said it would be difficult to meet targets in volume terms.

Tyagi also told analysts that the company would continue with strategy to divest non-core land parcels in Hyderabad, Goa and also few in north India. It would also look to raise funds through private equity at project level.

New marketing avenues for real estate developers: Reducing inventory, building a brand—I

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By: Shajai Jacob, Director & Head – Marketing & Communications, JLL India

- india realty news, india real estate news, real estate news india, realty news india, india property news, property news india,Head- marketing & communication, Jones Lnag LaSalle India,Shajai-Jacob , india news, property news, real estate news, India Property, Delhi NCR real estate, Track2Media, Track2Realty, Track2InfraTrack2Realty: Even as the Indian real estate market shifts into the second gear of recovery, developers whose operations had slowed down during the lull are still faced with multiple concerns. On the one hand, the very basis of their business is the launching of new projects (the only function that really defines a developer’s viability as a going concern on the real estate market). On the other hand, it is vital for them to clear piled-up inventory in order to generate capital and enable clearances for new projects.

Clearing unsold inventory is also extremely important from the point of view of retaining existing customers, as real estate investors show a high propensity for exiting projects which are not clocking up healthy sales. By all standards, many developers find themselves in an unenviable situation at a time when the market is headed into boom mode after a prolonged slowdown.

  •  The causes of unsold inventory

When any business does not function efficiently, one of the most visible results of this inefficiency is lack of customers. In the services industry, this will be visible in reduced interest in the services offered, and little revenue-generating work on hand. In the case of product-oriented companies (such as real estate development firms), the evidence lies most visibly in piled-up inventory. Excess inventory happens when a company is left holding more of its products than the market is willing to absorb.

  • What unsold inventory implies

Naturally, the visible evidence of excess inventory is regarded as bad for any business. It signals that the products are, for one reason or the other, not selling. In the case of Indian real estate, a very common misconception among buyers, investors and industry watchers is that developers saddled with a lot of unsold inventory are ‘paying the price’ of over-pricing their products. The assumption that follows is that reducing prices will catalyse sales.

In actual fact, this argument can fail to hold water. Many times, other developers’ projects within the same price band, location and category are selling at a much better rate. The fact that some developers simply have better marketing strategies than others is either not perceived or not well understood. If a developer himself lacks insight on why his stock not selling despite good price points and the right location and specifications, it can have serious consequences.

Developers looking at piled-up, non-moving inventory may panic and make counter-productive decisions. A futile blame game ensues if the developer views the unsold inventory as evidence that his sales and marketing team is not performing optimally. While there can be a grain of truth to this, it is also true that sales and marketing teams are only as good as the strategy that guides them.

If a developer has invested heavily into a flawed or incomplete marketing strategy, he is too close to the problem to see it for what it is. Insight is further clouded if a particular marketing strategy worked well in the past, should logically continue to work now but is no longer cutting it. 

Real estate marketing: A constantly evolving concept

For a real estate marketing plan to succeed in today’s highly competitive environment, there are myriad factors that come into play. More marketing activities than ever before need to be deployed, and these new activities require specialized know-how and specifically trained and qualified manpower. Real estate is a product industry in which the rules of the game have changed drastically over the past decade, and will continue to change.

Today, maximizing engagement with the target market is everything. For a project launch to succeed, a developer’s clients need to have top-of-mind recall for his brand and his product. In the past, the resources available to a developer were limited to print advertisements, radio jingles, hoardings, word-of-mouth promotion and, of course, brokers. Today, clients need to be wooed across a much wider spectrum.

  • Social media presence

Not to put too fine a point to it, a developer who does not have a well-defined social media strategy today is a dinosaur doomed to extinction. Neither long-standing reputation nor excellent track record will help if these elements are not reflected online across multiple channels.

Today, approximately 243 million Indians spend a significant part of their lives online, and use the Internet to access and receive information of every kind. With the advent of e-papers, news portals and blogs, the manner in which information about anything travels has changed both in terms of direction and speed.

Platforms like Facebook and Twitter may have started off as mere social networking media, but today the power they wield in the world of business is beyond dispute. Companies of every stripe and description are investing massively into making their presence felt on these and other online platforms. It is literally a battle to stay relevant in a world that does not acknowledge the existence of anything anymore if it cannot be found online.

  • Staying ahead of real estate portals

While the practice of maintaining well-crafted, informative and responsive websites has been a norm in the more developed countries for over two decades, Indian developers have only woken up to the need for this all-important calling card over the last 6-7 years. In this relatively short period, aggregator sites specialized in real estate deals and offerings have carved themselves the largest share of the online pie by investing exhaustively in search engine optimization and highly professional social media outreach.

The proliferation of these portals certainly spells good news for end users, because it gives them a more detailed oversight of what the market is offering than ever before. However, it is a different story for individual developers. The uniquely democratic business model on which property portals thrive hinges on showcasing as many projects and properties as possible. While developers can (and do) pay for higher ranking within this avalanche of options, the scope for focused branding and project-specific marketing on these projects is very limited.

 Today, forging a distinct and prominent online identity is very essential long-term function for developers; but more importantly, an effective online strategy plays a critical role in the success of a specific project launch. In today’s market scenario, developers who lack a well-defined online marketing strategy invariably find their projects selling at a far slower rate than their competitors.

 Vital ingredients of online visibility for real estate developers

  •  Dynamic website: It is definitely essential to have a good company website which provides oversight of the firm’s projects. However, the ‘fill-it-and forget-it’ approach no longer works – websites need to be user-friendly, informative and kept dynamic with regular optimization and updated content. A static website with no fresh activity to attract traffic is driven off the charts by competing websites, portals and other platforms
  •  High social media clout: Good Facebook, Twitter and LinkedIn presence with impressive and focussed followers is of prime importance, from a standpoint of visibility and branding as well as in terms of having a ready base of potential customers to address
  •  Engaging company blog:  Blogs are an important tool in reputation management, and are different from websites by virtue of the fact that they speak to potential customers on a less formal and more interactive and informative level. On a company blog, a real estate developer can offer insightful commentary on the market and thus elevate the firm’s status beyond that of a mere product dealership. A company blog which is regularly updated with interesting information attracts high search rankings online. Importantly, content on a company blog must at all times find the perfect balance between useful information and overt promotion.

 Coming in New Marketing Avenues: Reducing Inventory, Building A Brand (Part 2):

  • Troubleshooting – Fixing a faulty real estate marketing plan
  • The new public relations deal - Traditional Vs. Contemporary PR
  • Client engagement - Ditching The Monologue And Starting A Conversation With Customers

DLF approaches SAT against SEBI order

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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, Delhi NCR real estate, Track2Media, Track2Realty, Track2InfraTrack2Realty-Agencies:   DLF reached the door of Securities Appellate Tribunal (SAT) on Friday, Oct 17, against a SEBI order barring it and top executives from capital markets.

SEBI has barred not only the country’s largest real estate developer, DLF, but also its six top executives, including chairman and main promoter K P Singh, from the securities market for 3 years for “active and deliberate suppression” of material information at the time of its IPO.

However the regulator has provided some relief to the company by not imposing any monetary penalty. The prohibition has barred DLF and the six persons, from any sale, purchase or any other dealings in securities markets for a period of three years, including for raising funds.

DLF had debt of more than Rs. 19,000 crore as on June 30, 2014, while its already-proposed fund raising plans include nearly Rs. 3,500 crore through issue of certain bonds to replace its costlier debt.

This was one of the rare orders by Sebi where it has barred a blue-chip firm and its top promoter/executives from the market.

DLF is the largest real estate group in the country with nearly Rs. 10,000 crore annual turnover.

On Tuesday, the company shares had plunged by nearly 30 per cent, eroding the market value by about Rs.7,500 crore. However, the stock regained some lost ground in the next trading session.

It is pertinent to mention here that the DLF’s IPO in 2007 had fetched Rs. 9,187 crore — the biggest IPO in the country at that time.

As per the sources, appeal is likely to be heard by SAT next week. 

SEBI bars DLF, 6 directors from market for three years

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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, Delhi NCR real estate, Mumbai Real Estate, Bangalore Real Estate, Pune Real Estate news,Track2Media, Track2Realty, ravi sinha, Track2InfraTrack2Realty-Agencies: The Securities and Exchange Board of India (SEBI) on Monday, Oct 13, banned DLF and six of its directors — KP Singh (Chairman), Rajiv Singh, TC Goyal, Pia Singh, Kameshwar Swarup and Ramesh Sanka — from trading in the securities market for three years.

The market regulator found them indulging in fraudulent and unfair trade practices and also held them guilty of suppressing important information, particularly on legal cases, in the red herring prospectus for DLF’s initial public offering (IPO). The company went on to raise $2.3 billion, in what was then a record-breaking sum.

In addition, SEBI, in its show-cause notice, has alleged that “the process of share transfer of three subsidiaries of DLF in Sudipti, Shalika and Felicite was through sham transactions”. It said the company and its directors employed a plan to camouflage the association of DLF with the three subsidiaries.

They also actively concealed the filing of an FIR against Sudipti and others, it said.

“This will impact the entire realty sector and stock negatively,” said Vivek Gupta, CMT–Director Research, CapitalVia Global Research. Companies such as HDIL, Indiabulls Real Estate and Unitech may continue to fall and investors should avoid these sectors for now, he cautioned.

The market regulator said it has to deal sternly with companies and directors indulging in manipulative and deceptive devices, insider trading etc., or else it will be failing in its duty to promote orderly and healthy growth of the securities market.

“People with power and money and in the management of companies, unfortunately, often command more respect in our society than subscribers and investors,” it said.

The decision by SEBI marks its latest effort to bare its teeth, after long being criticised for failing to tackle violations by major market players.

“As far as non-disclosure cases are concerned, this is the biggest case in SEBI’s history and this is the biggest punishment they have imposed,” said JN Gupta, a former executive director at the regulator, who now runs a shareholder advisory firm. The ban means DLF could now struggle to pay down its debt using equity or debt instruments regulated by SEBI. Its debt, which swelled as the firm ramped up land acquisitions before the financial crisis, stood at ₹19,100 crore ($3.13 billion) at the end of June.

DLF founder KP Singh is the 21st richest Indian with a net worth of $3.3 billion, according to Forbes data.

The company, which has about 26 million square feet of leased assets in the country, will also be barred from listing a Real Estate Investment Trust (REIT).

SEBI finalised rules for REITs last month. “It will not have access to the REIT market for 36 months, and given DLF’s large portfolio of commercial assets, it would have been one of the biggest beneficiaries of REITs,” said Anubhav Gupta, sector analyst at Maybank Kim Eng India.

REITs, which invest mainly in commercial property and pay rent from their property to shareholders as dividends, provide developers with a new avenue for funding, allowing them to effectively sell finished commercial buildings to investors.

Earlier this year, the Supreme Court upheld a Rs. 630 crore fine against the company imposed by the Competition Commission of India. DLF has also been at the centre of a political controversy over sweetheart land deals.

Big 30% rise in new residential launches but selling is hard with slow demand: ASSOCHAM

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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, Track2Media, Track2Realty, Track2InfraTrack2Realty: It is going to be quite a hard sell for the real estate developers this festive season as a huge increase of 30% quarter–on–quarter in 2014-15 in new launches in the residential segment met with inventory further going up by 6.7% in the same period, according to an ASSOCHAM recent paper.

The paper projected a slower growth of 4–8% in Tier-I cities in the current year while capital values in Pune, Kolkata and Hyderabad may grow at a comparatively faster pace, considering their low floor prices.

Anticipating a post-election recovery in housing demand, new launches had touched in the first quarter of this year its highest level since the last quarter of 2012-13, only to be met by a cautious buyer.

“After four consecutive quarters of muted launches, such activities showed improvement at the country level. Ahead of general elections, developers had launched many projects to gain competitive advantage and, at the same time, anticipated a recovery in market conditions post-polls.

However, a slump in demand led to buyers taking a cautious approach. The number of unsold units rose 6.7% quarter on quarter because of the large number of new launches amid a prolonged slump in sales. New launches increased by approximately 30 per cent q-on-q in Q1, 2014-15,” the paper done jointly by the ASSOCHAM and JLL said.

It said while there was an improvement in new launches, sales continued to remain low despite developers offering attractive pricing schemes and discounts to attract buyers.

In the current year, while growth in Tier–I cities is expected to be slow at 4-8% year on year depending on the micro markets, capital values in Pune, Kolkata and Hyderabad may grow at a comparatively faster pace, considering their low floor prices. Developers in Tier-I cities likely to continue liquidate their stocks by offering good pre-launch and pricing promotions.

On the prices front, pan-India residential real estate ticket prices are expected to grow at 10-12% in 2014 factoring in inflation.

“Liquidity and high level of leverage remain big issues with the real estate developers. These two issues can ultimately get resolved with pick up in the economy and a smart recovery in demand for housing units. But there is a lag between improvement in macro picture and its impact on the real estate market, particularly in the residential segment which is highly sensitive to the interest rates and the job market, which needs to be robust for the demand rebound,” ASSOCHAM Secretary General Mr D S Rawat said sharing concerns expressed in the industry specific paper.

When it comes to the return on investment, the average capital values across the residential markets in the top seven markets have shown signs of recovery, though steady, since 2009.  “Since the trough in second half of 2009-10, Mumbai has led the increase in average capital value (ACV) with nearly 59 per cent growth, followed by Bangalore with 43.5 per cent rise in ACV and the NCR-Delhi 33.9 per cent. In the case of Chennai it was 41.09 per cent while it was only 25.2 per cent for Hyderabad. However, Kolkata and Pune have been major movers, showing appreciation of 50.7 per cent and 47.8 per cent respectively during this period”, adds the ASSOCHAM paper.

In the NCR, Noida ACV has remained low owing to the large number of residential launches in the affordable and low-mid segments, reveals the paper.     

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