Govt to Rope in Major Developers to Promote Green Housing in India

With a view to reduce carbon emissions, the government will soon rope in major real estate developers for voluntary adoption of a set of new guidelines on building low energy consuming green housing complexes. The move is part of the government’s national action plan on climate change.

The ministry of new and renewable energy (MNRE) has asked an expert agency set up by it in partnership with The Energy & Resources Institute (Teri) to evolve a set of guidelines on how to build large housing complexes in the most environment friendly and energy efficient way. The new guidelines would include requirements such as meeting about 5% of the energy requirements through renewable sources.

While development of townships is the mandate of the ministry of urban development and partly, the housing ministry and urban poverty alleviation, the proposed green rating for housing complexes is an initiative of MNRE because it is an extension of the projects it is already doing. Officials from other ministries are part of a technical panel of MNRE dealing with green infrastructure for large development. The expert agency—the

Association for Development and Research of Sustainable Habitats or ADARSH—which now gives green ratings for individual buildings, will evolve the new norms for large residential complexes. ‘‘The rating called Griha would be voluntary for builders in the initial few years, after which it could be made compulsory,’’ the rating agency’s CEO Siva Kishan told FE.

The idea is to rope in top five real estate developers to voluntarily adopt the guidelines, which would then set the benchmark for others. The rating agency is now in talks with various developers and the first partnership with a real estate developer may be announced soon, he said. The rating agency is also talking to various state governments for giving incentives to developers to adopt the new norms that would reduce energy consumption and the impact of construction on ground water levels and the environment.

Shiva Kishan said the Maharashtra government is open to reducing property tax for green buildings as an incentive, while some other states are open to let builders construct more floors if they follow green building norms. This would allow them to recoup the rating fee as well as the extra initial cost of environment-friendly construction. The ministry now allows some incentives for individual buildings to get green rated. These include reimbursement of 90% of the rating fee and rewards for the architect.

CREDAI Organises Conference on Formulation of Banking Strategy for Real Estate

CREDAI NCR, the Delhi-NCR chapter of the Confederation of Real Estate Developers’ Associations of India (CREDAI), the apex body of real estate in India, organised a conference on Formulation of Banking Strategy & the Economic Outlook for Real Estate for 2010-11 here.

The Summit covered a wide range of topics of interest to the stakeholders in the industry, providing a huge networking opportunity as well as a knowledge sharing platform for the participants to discuss and deliberate on the issues being faced by the sector and the way ahead for the same.

The conference takes place at a time when realty sector is improving, and growth in real estate is aligned to the economic growth of the country, wherein real estate is a vital contributor as residential housing alone contributes over 5% to the country’s GDP at this time. Financing is an integral part of the real estate industry and hence it is imperative that the developers and the finance institutions work closely and in mutual aid to help sustain and develop the growth trajectory of the sector. A constructive dialogue and collaborative strategies between banks and real estate developers have the potential to transform the real estate sector today and build a momentum that can benefit the economy as a whole.

Project financing is one of the critical issues in real estate today, where much needs to be done to ensure smoother operations and growth. Hence, project financing, both in residential as well as commercial realty, requires immediate attention and the conference focussed on the matter in order to arrive at workable solutions in the area.

Issues such as the difficulties in financing for projects as faced by mid and small level developers; the procedural complexities involving legal requirements, low growth rate of real estate loans in recent times; credit crunch faced by the sector heightened by the anti-inflationary measures taken by the RBI; problems faced in risk assessment of projects; and others were discussed in detail as industry stalwarts and experts in the domain shared their views and suggestions on them.

The conference aimed at providing an opportunity to understand the economic outlook and the real estate scenario in the coming year. At the same time, it sought to conceptualize a banking strategy that can address the needs of the real estate sector. Also, developing solutions so as to help generate smoother funds flow in the sector, by addressing the concern areas of both the lenders and the borrowers – i.e. the developers and the finance institutions. The conference also provided an insight to the developers and the bankers to build their portfolio strategies for the year ahead.

Mr. Santosh Rungta, President – CREDAI, said, “With the outlook on the Indian economy and the realty sector improving, it’s a good time to develop a new strategy to look at project financing for real estate in India in both the residential and commercial scenarios. We are hopeful that this initiative will be able to open new avenues for us in the area of project financing and guide us towards effective solutions for the benefit of both the bankers and the developers, eventually aiding the augmentation of the sector as a whole.”

Mr. Pradeep Jain, President – CREDAI NCR, commented, “It is essential that the developers and the financing institutions work in mutual cooperation and understand the issues and complexities involved in the processes from each other’s perspective. We took this initiative in order to facilitate comprehensive and transparent communication amongst the stakeholders so as to help develop effective solutions which would benefit all the parties involved and at the same time ensure sustainable growth and development for the industry.”

The conference witnessed participation from eminent industry stalwarts like S S Kohli, CMD - India Infrastructure Finance Company Limited; Dr. J D Agarwal, Chairman & Director - Indian Institute of Finance; Sandeep Kotak, Executive Vice President, Kotak Mahindra Bank Limited; Punit Malik, Managing Director - Yes Bank; Renu Karnad, Joint Managing Director - HDFC; Deepak Chawla, Advisor Markets - Financial Advisory Services, Ernst & Young; Shanti Ekambaram, Director - Kotak Mahindra Capital; Sunil Rohokale, Executive Director - ASK Investment Holdings Private Ltd. and Rajiv Sabharwal, Senior General Manager - ICICI Bank, among others.

Delhi to have Real Estate Regulator by Year-End

Delhi will have real estate regulator by this year-end, Urban Development Minister S. Jaipal Reddy said Thursday. He also said the government was talking to other states to have similar regulators. “The state governments have sounded positive. It would take time to happen. But Delhi will get a regulatory authority for the real estate by this year,” Reddy told.

He said the legislation process for the real estate regulator for Delhi would soon be completed as the draft bill has been circulated to the stakeholders.

According to him, the regulator once in place would prevent real estate players from indulging in unnecessary profiteering.

The minister also said the Metro rail will stretch to 190 km in the national capital region by the time the Commonwealth Games start here October 3.

Premium localities sell well in Delhi, Chennai

A weekly snapshot of some big-ticket city deals.

Delhi-NCR
An apartment admeasuring 3,700 sqft located in Malcha Marg was leased out for a monthly rental value of Rs 3,75,000. The rental values in this location range from Rs 2,75,000 4,25,000 per month and this apartment is well within this range and has seen an appreciation of around 12% over the previous year due to restricted supply and high demand, especially from expatriate community.

Malcha Marg is one of the citys most sought-after residential locations, due to its strategic location being equidistant from the established CBD and new business district of Gurgaon. Additionally,the location, due to excellent town planning,offers congestionfree traffic movement.

Chennai
An independent house located at Rambagh, Besant Nagar, was taken on lease by a major corporate. The house admeasuring around 5,000 sqft is located in the prime residential boulevard of the city. The monthly rental of Rs 3,00,000 per month is moderately higher than the prevalent rental for high-end residential units in the area, due to the fact that its location is equidistant from the central business district (CBD) of the city as well as from other emerging business locations. The area, by virtue of being an established residential location, also has good social infrastructure, including retail and entertainment, education and healthcare.

Pune
A three-bedroom apartment unit, admeasuring 1,441 sqft was sold in Chinchwad for a total cost of Rs 49,05,871. The per square foot value of this property is around Rs 3,400 per sq ft, which is in line with the current prevalent values in the location. This mid-ranged apartment complex is located in the suburban location of Pune, which is currently going through a transformation, with many apartment complexes and gated development being planned in the location. The area has been gaining importance due to its convenient location and good access to various office and commercial locations across the city.

Hyderabad
A residential apartment admeasuring 3,170 sq ft was purchased in an under-construction project in Madhapur, Western Hyderabad,at a capital value of Rs 4,250 per sq ft. The property,being built by a prominent national developer,houses apartments ranging from 2,200 sqft to 4,375 sqft in the configuration of three and five-bedroom units. The apartment is located in Madhapur,a part of Mindspace IT Park and adjacent to Westin Mindspace Hotel,in the Western part of Hyderabad. This area has seen a growth in demand for residential units owing to the fact that it is a prominent office location. The location has, due to a steady increase in demand, seen a growth of around 6% in capital values over the past three months. Being located in close proximity to work places, this premium project is expected to garner significant interest from end users. Source: MagicBricks

Rules may be eased for service tax on realty

New Delhi:

Home buyers and property developers need not worry about being levied a service tax if they cannot procure a completion certificate from the local authority. The government could allow some independent authority to certify that the property is complete.

We are examining the issue and will see if a similar certificate from an outside agency can suffice, a finance ministry official said. Local authorities in some states do not issue completion certificates while others take many years to issue one.

The budget for 2010-11 has proposed to expand the scope of construction service to impose service tax on houses that are still being built.

The service tax will be levied only on 33% of the base price of a flat sold at construction stage. The effective service tax rate will work out to 3.3%,or 10% of 33%. Charges such as development fee, parking fee and premium location usually paid at the time of completion of construction will also be included in the base price.

The new rule will come into effect when Parliament approves the budget. Service tax will be levied only if payment is made before the completion of construction. Sale of fully completed houses will be exempt from the tax if a completion certificate from a local authority is provided.

The finance ministry may admit a certificate from an architect or builders association as a sufficient proof of completion.

Property developers had a mixed response to the proposal. Rajeev Talwar, managing director of DLF,t he country’s largest developer,felt the flexibility could be abused. However, an executive of Delhi-based developer Ansal API appreciated the governments decision. If the government takes the decision to outsource the whole process to an accredited agency, it will take the pressure off the realty firms.

Non-availability of completion certificate can increase the cost of a property as the 3.3% service tax would be significant, taking the tax element to nearly 10% after including the stamp duty.

India needs $1tn for infrastructure development

To achieve a share of 9.95 per cent as a proportion of GDP, this amount is needed to pump in infrastructure segment

Published on 03/23/2010 - 06:50:18 AM

New Delhi: An investment of over US $1 trillion is required in the infrastructure sector during the 12th Five Year Plan (2012-2017), Planning Commission Deputy Chairman Montek Singh Ahluwalia said.

"A preliminary assessment suggests that investment in infrastructure during the 12th plan would need to be of the order of about US $1,025 billion to achieve a share of 9.95 per cent as a proportion of GDP," he said in a report on the sector.

The investment requirements of the 12th Plan are twice more than amount investment during the current plan. About US $500 billion will be invested by the end of the 11th Five Year Plan with the telecom sector attracting more than expected investments, reports IANS.

Lack of infrastructure is among the main challenges faced by the growing Indian economy today.

The government showed resolve in bridging the gap as it allocated 46 per cent share of the total budget allocation for the next fiscal towards new and ongoing infrastructure development projects. Source: igovernment.in

DLF Gets Ready for DAL listing

DLF has completed the merger of Caraf Builders & Construction, which owns investment trust DLF Assets Ltd (DAL), with another offshoot DLF Cyber City, a move India’s biggest realtor says is logical to listing DAL on the Singapore Stock Exchange (SGX). A company spokesman confirmed the development while two senior executives involved in the listing process said DAL, set up to acquire properties from DLF and other developers for leasing out to third parties, is likely to be listed on SGX in the first quarter of 2010-11 .

Though DAL’s listing was not dependent on the merger, it was important that the integration with Cyber City, a wholly-owned subsidiary, was completed before the listing as the move is also aimed at further streamlining all commercial assets under one head, said the first executive on condition of anonymity. Under SGX norms, a company planning to list cannot reveal listing plans before its draft prospectus is approved.

Merging DAL, which buys and manages commercial assets on the lines of real estate investment trusts, with Cyber City will ringfence DLF from the uncertainties of the property market as it guarantees a steady stream of revenues, said the second executive. DLF acquired Caraf from promoters KP Singh and family last December in a share swap deal and decided to give it a 40% stake in its Cyber City. By consolidating the group’s rental assets, that transaction too was aimed at ensuring a steady cash flow.

The rental business of DLF and Caraf together generated annual incomes of Rs 700 crore and Rs 550 crore in the current fiscal. Post-merger , the rental business is expected to give DLF an annual come of Rs 1,500 crore in 2010-11 , which should be 20% of the total income, said the second executive . As the merger is effective from March 19, its effect will not be reflected in the current financial year, he added.

DLF offers Rs 4 crore flats in Delhi

24 Mar 2010, 1624 hrs IST, PTI

NEW DELHI: Hotting up competition in the luxury residential property segment, country's largest realty player DLF today said it will offer flats with a price tag of Rs 4 crore per unit at the heart of the National Capital. The firm is offering 150 luxury apartments following the launch of the third phase of a housing project -- Capital Greens -- at Shivaji Marg, close to Moti Nagar (near Central Delhi). The flats are offered at Rs 11,000 per sq ft. "There is very strong demand for luxury products and if we offer a good product at a competitive rate, it will sell," DLF Group Executive Director Rajeev Talwar told PTI. Although the flats are priced very high, these are still very competitive to what other developers are offering in the city in the luxury segment, he added. Rival Parsvnath has two residential projects in the National Capital -- one at Subhash Nagar (West Delhi) priced at Rs 7,500 per sq ft and the other at Civil Lines (North Delhi) tagged at Rs 10,000 a sq ft. Another developer Emaar MGF is selling apartments at Rs 12,700 per sq ft in its Commonwealth Games project. Talwar said DLF's third phase will comprise only 4-BHK apartments, sizes of which will be about 3,000 sq ft. "We have already received bookings for 70 units. We will open the bookings till all the flats are sold," he added. The company had last year launched its first and second phases with 1,400 and 1,250 units respectively. While the apartments in Phase-I were available at a price of Rs 4,500 per sq ft (2-BHK) and Rs 5,500 per sq ft (3-BHK), the company offered its flats in Phase-II at Rs 6,750 per sq ft (2-BHK), Rs 7,500 per sq ft (3-BHK) and Rs 8,000 per sq ft (4-BHK). In 2007, DLF had acquired 38 acres from DCM Shriram and Lohia Group for Rs 1,675 crore, and the 'Capital Greens' is being developed on that land.

 

Centre eyes strategic partner for Maytas Prop

ET Bureau, Delhi

NEW DELHI: Minister for corporate affairs Salman Khurshid on Thurday said that the government is looking at the possibility of inducting a strategic partner in Maytas Properties, the company promoted by the kins of B Ramalinga Raju, founder of the former Satyam Computer Services. 

Asked whether the Union wants to find a strategic buyer for the unlisted Maytas Properties, as it did in the case of Satyam, Mr Khurshid said: “For all practical reasoning, that (strategic sale) is something that would work out... but they (board members) have to decide.” Following the admission of accounting fraud in Satyam Computer Services by Raju last year, the government appointed its own nominees on the twin companies — Maytas Infra and Maytas Properties — promoted by Raju’s sons.

Former president of the ICAI, Ved Jain, was appointed as government member on board of Maytas Properties. He was later elevated as the company’s chairman. 

“Ved Jain (chairman of Maytas Properties) is working out all permutation and combination, and we are trying to give him all the help required... We have very limited option. Since we have started the process, we want to bring it to a satisfactory end,” Mr Khurshid said. Several NRIs who booked flats in projects promoted by Maytas Properties have been asking the government to expedite rehabilitation of the company. 

The company had raised Rs 650 crore from customers for the Rs 1,100-crore Hill County project near Hyderabad. Maytas Properties reportedly has a land bank of about 6,000 acre.

DLF's Rs 4 crore luxury homes draw big numbers

22 Mar 2010, 0630 hrs IST, Paramita Chatterjee, ET Bureau

NEW DELHI: DLF, the country’s biggest realtor, has sold three-fourths of its upscale flats in central Delhi at Rs 4 crore apiece within two days 

of launch in a sign that demand for such properties is alive and well despite the drift towards affordable housing. 

DLF had launched the third and final phase of 150 flats — each measuring 3,000 sq ft or more — of Capital Greens near Moti Nagar last Friday. A DLF spokesman confirmed the sale. “The company has received an overwhelming response,” he said, adding that the final number will be known on Monday. 

The rush for DLF flats is further evidence that the Indian realty sector’s recovery is real and gathering pace after the sharp spurt in demand for affordable houses in recent months. Besides DLF, developers such as Ansal API, Orbit and Uppal are developing high-end apartments across India. Delhi-based Ansal is looking to launch upscale properties in Lucknow later this year. "The prices will be in the range of Rs 5-10 crore for villas of 4,000-5,000 sq ft,” said a spokesman. 

Orbit Corporation’s boutique homes in Mumbai will be sold for nearly 50,000 a sq ft while the Uppals are developing boutique luxury housing projects in the capital in areas such as Vasant Kunj and Shanti Niketan where the rates would be around Rs 40,000 a sq ft. 

Analysts say with the economy in shipshape and the job market ticking again, consumers are regaining the confidence to invest in swank projects despite the RBI’s surprise interest rate hike last Friday. In suburbs and extended suburbs, prices are more a function of location, supply and job creation, said a real estate analyst who did not want to be named as he is not authorised to talk to the media. 

No market illustrates this facet than Delhi where the property market has long been beset by a space crunch, he said, adding that the stellar response for DLF flats should come as no surprise. 

After the latest round, the Capital Greens project’s total sale value has shot up to around Rs 3,600 crore. In the first phase, DLF sold 1,450 flats for Rs 1,300 crore; in the second, it sold 1,250 flats for Rs 1,700 crore and in the last, 300 flats were sold for Rs 600 crore. 

The company bought the 38-acre plot in 2007 for Rs 1,650 crore. 

Even DLF, a name typically bracketed with luxury housing, veered towards affordable properties after the market got hammered by the slowdown as buyers kept away and lending dried up. But a return to upscale properties may be in order with residential prices in metros such as Delhi and Mumbai expected to firm up further in the next few months due to a paucity of supply, said analysts.

Magicbricks Exclusive: NIREM launches PG Diploma in real estate management

Posted: 17 Mar 2010 05:14 AM PDT

New Delhi:

IDS National Institute of Real Estate Management (IDS NIREM) launched PG Diploma in Real Estate Management (PGD-REM). The PG Diploma in Real Estate Management is being offered as a one year distance learning course.

The course is designed to enable students to gain expertise and knowledge of all aspects of real estate including real estate management, marketing and development. The real estate management program covers Real Estate Principles & Practices, Finance, Appraisal, Property Laws, Real Estate Investment Analysis, Fundamentals of Real Estate Management, Real Estate Market Analysis, Development, Construction & Management of Residential Properties, Commercial Properties, Retail Properties etc. among others.

The PGD-REM program offers both the fresh graduates who intend to pursue a career in real estate and the professionals already working in real estate sector, an unequaled educational growth and career advancement opportunity. 

Recovery in realty

15 Mar 2010 12:16 AM PDT

Delhi:

Residential markets across major cities of India have seen significant appreciation in values towards the close of 2009. This trend is most prominent in NCR and Mumbai, the two key residential markets in India, where values in Oct-Dec 2009 appreciated, compared to the same period the year before, says Cushman and Wakefield in a report.

The report said that recovery in NCR and Mumbai is a definite precursor to the expected trends in 2010. However, it would be premature, the report adds, to predict a bounce-back for the entire sector. The other markets which are still witnessing some correction are expected to stabilize only in the next 3-6 months. These are expected to see positive signs of recovery by the middle of this year, when values across the board would stabilise but will remain within acceptable range.

The average increase in capital values in various micro-markets in these two metro areas has been in the range of 3% to 25% over the previous year, the report shows (see chart). Most micro-markets in these two cities have recorded stable to appreciating capital values over the last quarter as well.

NCR and Mumbai have shown a faster recovery than other cities due to the fact that these are high-demand markets, both from end users and investors, who were holding back their requirements as a result of economic slowdown , which created a kind of uncertainty in the job markets. The best outcome of the slowdown is the emergence of affordable housing in the country.

At the same time, the strong recovery in the economy led to sharp upward correction in the capital values for mid-ranged housing due to the quantum of demand and affordability.

Certain broad trends that were noticed across cities were that peripheral and the suburban markets witnessed the highest correction but were also one of the first markets to bounce back, C&W says. Another shift in the trend is the rise in demands for properties under construction.

The report said, there was a clear shift towards readyto-move-in properties during the beginning of the year, when there was uncertainty on the capability of a developer to complete a project. But that has receded now resulting in a rise in risk appetite for properties under construction.

In the NCR region, demand for affordable housing in the range of Rs 20 lakh to Rs 40 lakh could be understood from the fact that a number of projects completely sold out within a couple of days of their launches. Recently, in Noida, Supertech , which launched apartments for Rs 9.75 lakh, (this is the first project in NCR for sub-Rs 10 lakh) could sell around 500 apartments in a couple of days.

The new trend has led to increase in the volume of transactions. Supertech CMD, R K Arora, says that the developers have now shifted to high-volume business from high margin ones. However, he also pointed out that this became possible because of the relaxation in the density norms (number of apartments allowed to be constructed on a given area). Therefore, the construction activities are set to rise in 2010. Source: MagicBrick

Recovery in Realty

14 Mar 2010, 1134 hrs IST, Prabhakar Sinha, Source: ET Bureau

Residential markets across major cities of India have seen significant appreciation in values towards the close of 2009. This trend is most prominent in NCR and Mumbai, the two key residential markets in India, where values in Oct-Dec 2009 appreciated, compared to the same period the year before, says Cushman and Wakefield in a report. 

The report said that recovery in NCR and Mumbai is a definite precursor to the expected trends in 2010. However, it would be premature, the report adds, to predict a bounce-back for the entire sector. The other markets which are still witnessing some correction are expected to stabilize only in the next 3-6 months. These are expected to see positive signs of recovery by the middle of this year, when values across the board would stabilise but will remain within acceptable range. 

The average increase in capital values in various micro-markets in these two metro areas has been in the range of 3% to 25% over the previous year, the report shows (see chart). Most micro-markets in these two cities have recorded stable to appreciating capital values over the last quarter as well. 

NCR and Mumbai have shown a faster recovery than other cities due to the fact that these are high-demand markets, both from end users and investors, who were holding back their requirements as a result of economic slowdown , which created a kind of uncertainty in the job markets. The best outcome of the slowdown is the emergence of affordable housing in the country. 

At the same time, the strong recovery in the economy led to sharp upward correction in the capital values for mid-ranged housing due to the quantum of demand and affordability. 

Certain broad trends that were noticed across cities were that peripheral and the suburban markets witnessed the highest correction but were also one of the first markets to bounce back, C&W says. Another shift in the trend is the rise in demands for properties under construction. 

The report said, there was a clear shift towards readyto-move-in properties during the beginning of the year, when there was uncertainty on the capability of a developer to complete a project. But that has receded now resulting in a rise in risk appetite for properties under construction. 

In the NCR region, demand for affordable housing in the range of Rs 20 lakh to Rs 40 lakh could be understood from the fact that a number of projects completely sold out within a couple of days of their launches. Recently, in Noida, Supertech , which launched apartments for Rs 9.75 lakh, (this is the first project in NCR for sub-Rs 10 lakh) could sell around 500 apartments in a couple of days. 

The new trend has led to increase in the volume of transactions. Supertech CMD, R K Arora, says that the developers have now shifted to high-volume business from high margin ones. However, he also pointed out that this became possible because of the relaxation in the density norms (number of apartments allowed to be constructed on a given area). Therefore, the construction activities are set to rise in 2010. 

Due to focus by developers in 2006 and 2007 on luxury housing, high-end properties in most cities suffered a steep correction when slowdown impacted the sector, as compared to mid-end properties. This left a large unmet demand in the mid-end market. As favourable conditions have come back, the sector has witnessed resurgence of demand. 

However, for the trend to continue, the government should not put extra burden on it. The budget announcement of 10.3% service tax on the sale of apartments before completion is expected to have the highest impact in the real estate market. This may hamper the attractiveness of the projects under construction. 

The scope of service tax is extended to the construction of complex service, wherein the developer/builder is likely to pay service tax on construction services while the project is under construction. The levy would cover all construction of complex service or commercial or industrial construction services resulting in higher cost of properties under construction. 

The service tax of 10.3% will be levied and also be charged on additional services provided in residential developments such as preferential location charges, internal or external development charges, etc. It is estimated that service tax of 10.3% will be levied on approximately 33% of the value of an apartment, which is likely to escalate the price of real estate and put further pressure on the housing affordability. 

In the short term, the report says, real estate prices across most cities are expected to continue to strengthen. However, it also warns that a significant increase could result in demand drying up and lead to stagnation or further correction. Rental values are expected to remain stagnant, especially in the luxury/high-end segment with certain mid-end properties witnessing buoyancy.

Developers are likely to remain cautious and launch new projects at attractive price points, the report says. Due to prevalent demand for mid-income housing, most developers are expected to focus on new projects in this category, over short- to medium-term, with very few niche projects in luxury category with strong differentiation factors.

UK's Whitbread buys out Indian JV partner: paper

Reuters / Mumbai March 13, 2010, 11:09 IST
Whitbread, Britain's biggest hotel and coffee shop operator, has bought out its Indian joint venture partner Emaar MGF, the Economic Times reported on Saturday, citing a Whitbread statement.

"Whitbread Plc confirms that Premier Inn has completed the acquisition of the 50.1 percent stake it did not own in the JV with real estate developer Emaar MGF," the paper quoted the statement as saying.

The paper also quoted an unidentified Premier Inn India official as saying the company has trimmed down its investment plans for India.

Emaar MGF is a joint venture between Dubai's Emaar Properties and Indian financier MGF.

Earth Hour back: Lights off on March 27

 13 Mar 2010 11:43 PM PST; New Delhi

On March 27, between 8.30pm and 9.30pm, Bollywood icon Abhishek Bachchan will probably be enjoying a candlelight dinner with his wife.

And thousands of others will be spending the hour organizing gatherings, marches and participating in Earth Hour events.

The global event, when millions across the globe will join hands in switching off lights for one hour to pledge their support for the planet, is back and India, specially Delhi, will be playing a major role in making the event a success.

This year, more than a billion people across 6,000 cities and towns will be participating in the event. Delhi government has promised to contribute its bit by ensuring that all government buildings in the city will turn off all non-essential lights during the Earth Hour. We will come out with a campaign,along with WWF the official organizers of the event in India. All ASI buildings,government buildings, shopping areas, etc, will be part of the initiative. Hotels can specially organize candlelight dinners on this day. While the move is purely symbolic, it is extremely important for conservation of the environment, said chief minister Sheila Dikshit.

Earth Hour is a concept that took shape in Australia in 2007 when about 2.2 million residents of Sydney turned their lights off for one hour. This was a symbolic gesture by the city to join in the fight against climate change. A year later,the movement spread to other parts of the world, with over 50 million people from 35 countries joining hands to take it forward. India formally joined the programme in 2009 when over 64 countries took part.

Despite the initiative being completely voluntary, India saw an overwhelming response to the WWF-organized event. Delhi, Mumbai and Bangalore were the official partners though by the end of it, several cities across the country pledged their support, including Hyderabad, Kochi, Thiruvananthapuram, Amritsar and Chandigarh. In Delhi, several corporates and resident welfare associations joined hands to make the event a success during which 700MW of power was also saved.

Abhishek Bachchan this years brand ambassador for Earth Hour said the movement had become necessary and we should strive for a day when we don’t need an Earth Hour. He said: “Circumstances call for a slightly more aggressive stand and now we cannot just appeal to people to save the environment.I will request the film industry and producers organization to ensure any shootings,events,etc,scheduled during the Earth Hour should also observe lights-out.” Source: MagicBrick

CFL lamps to prune MCD’s electricity bill

13 Mar 2010 11:35 PM PST; New Delhi

The Municipal Corporation of Delhi (MCD), which spends Rs 30 crore over electricity bills every year, is planning to adopt energy efficiency measures. It will be replacing the 40W bulbs with retrofit type T5 bulbs and CFL lamps in hospital buildings, office buildings, dispensary and health centres.

A resolution on this was passed in the standing committee meeting. While MCD will spend Rs 2.5 crore in changing its bulbs under phase-I, it said the amount will be recovered in about one year.

According to officials, this will help cut down power consumption by 25-30 %. In terms of power, it will save 3.74 lakh per unit per month and in terms of money it will help save Rs 18 lakh per month and Rs 2.25 crore per year.

Said an MCD official: “We will start by replacing bulbs in hospitals like Hindu Rao and Kasturba Hospital, etc, and the 12 zonal offices. We are taking this step in order to cut down on the amount spent on electricity bills. A survey was done by companies to see where the maximum power was consumed by the agency and since hospitals were one of the major areas where power was being consumed, we decided to start from there.”

According to officials, MCD is also going to write to the World Bank to get carbon credits against this. We have the plan ready and will write to World Bank and Clinton Foundation. According to MCD,all together there are around 2,500 MCD buildings where bulbs will be replaced to save energy besides taking other steps.

Added the official: “The stormwater pumping stations are another area where a lot of power is consumed.Since the pumps installed in these stations are very old we will replace them with new energy efficient pumps.”

MCD launched a new system of remote monitoring and operating streetlights by which sunrise and sunset timings will coincide with switching on and off of streetlights.This will not only conserve energy but will also reduce the amount of carbon dioxide emission in the city. Source: Magic Brick

BPTP plans Rs 1,500 cr IPO in early 2010-11

Press Trust Of India / Mumbai March 11, 2010, 1:00 IST
Real estate developer BPTP today said it plans to raise around Rs 1,500 crore through an initial public offer (IPO) by early 2010-11. “We have applied to the Securities and Exchange Board of India (Sebi) for approval. We hope to launch our IPO of Rs 1,500 crore early next fiscal,” BPTP Managing Director Kabul Chawla said.

The company, which has a net worth of Rs 1,600 crore, is hoping to clock a top line of Rs 1,000 crore and profit after tax of Rs 200 crore in FY10.

The company plans to pre-pay its Rs 325 crore debt from the issue proceeds, while Rs 500 crore has been earmarked for government use (conversion of land), he said.

The realty major has a consolidated debt of Rs 900 crore.

In 2011, Rs 150 crore will come up for repayment and the year after Rs 600 crore, Chawla said, adding “though we are not stressed in terms of debt, we plan to pre-pay Rs 325 crore out of the issue proceeds”.

JP Morgan and SSKI are the book running lead managers (BRLMs) to the issue.

The company, which is primarily into mid-housing development, also has four special economic zone (SEZ) projects but, is currently going slow on them.

“Given prevailing market conditions, we have deferred activity on our SEZs so as not to over leverage our balance sheet,” Chawla said.

Going forward, BPTP might explore the option of converting these SEZs into residential use, Chawla said.

“We have the option of converting our four IT SEZs, at Noida, Greater Noida, Gurgaon and Faridabad, for residential purposes. We might exercise this option if the market conditions so demand,” he said.

On its focus on the national capital region (NCR) market Chawla said: “There is tremendous potential here and we intend to continue focussing on this region.”

Besides NCR, the company has one project in Hyderabad spread over 10 acres, which it plans to take up at an appropriate time.

BPTP has a land bank of 1,860 acres. It has 37 million sq ft of ongoing projects and has sold 31 million sq ft, worth Rs 5,500 crore, so far. Its receivables stand at Rs 2,500 crore.

JP Morgan and Citi currently hold 12 per cent stake in the company while, Merrill Lynch has 49 per cent stake in one of its Special Purpose Vehicle (SPV) — Vital.

At present, Citi Properties holds 50 per cent stake in its Faridabad SEZ SPV, 17 per cent in its Noida SEZ SPV and 43 per cent in its Greater Noida SEZ SPV.

Emaar MGF's Rs 7000cr IPO gets Sebi nod

Press Trust of India / New Delhi January 11, 2008

Real estate major Emaar MGF has received market regulator Sebi's approval to launch an initial public offer to raise about Rs 7,000 crore. The issue is likely to hit the capital market in the first week of February, and is expected to be listed by February-end, banking sources said.

Emaar MGF, a joint venture firm between Emaar Group of Dubai and Delhi-based MGF Development, had filed a draft red herring prospectus with Sebi in September last for selling 10% stake (11.74 crore shares) in the company to the public through the IPO. Emaar Properties chairman Mohamed Ali Alabbar had said in December that the JV firm would be raising about USD 1.7 billion through dilution of 10% stake. DLF, the biggest real estate firm, had last year mopped up over Rs 9,000 crore from its IPO. The global coordinators and book running lead managers to the issue are Enam Securities and DSP Merill Lynch. The Citigroup Global Markets India, Kotak Mahindra Capital Company, HSBC Securities and Capital Markets, JPMorgan India and Goldman Sachs (India) Securities have been appointed as book lead managers for the issue. The equity shares of the company would be listed on the Bombay Stock Exchange and National Stock Exchange. Emaar MGF has a land bank of over 12,500 acre, which is spread over 22 cities in 16 states in India. It has commenced projects in eight cities in seven states in India. The company is engaged in development of properties in residential, commercial, retail and hospitality sectors. In addition, it has identified healthcare, education and infrastructure as business lines for future growth.

Khaitan & Co hires IAS man as partner, real estate head

12 March 2010, New Delhi

Khaitan & Co has hired ex-bureaucrat and lawyer Dr PK Agrawal as partner to head its real estate practice in Delhi.

This is Agrawal's first assignment at a law firm, which he has now taken up after retirement.

Agrawal said: "As an IAS officer, I was dealing with a lot of court cases, especially in revenue matters and land laws - there were lakhs of cases since it's a big litigation area. In fact, I was already doing a half-lawyer's job and I am happy that [in Khaitan] I'll be doing a full lawyer's job.

He added: "My team consists of three lawyers and two assistants. My job will be to advise the firm on real estate matters and also on Consumer Act related issues - if it comes through - and as usual on other constitutional matters."

Agrawal served as an IAS officer for 11 years in the field of land revenue and land reforms in various departments of Government of India undertakings and for the Government of West Bengal.

He worked as deputy secretary and director and joint secretary in Department of Consumer Affairs of the State of West Bengal, Ministry of Law & Justice, Ministry of Environment & Forests for 10 years and for the Department of Jails, Woman & Child Development, social welfare departments and PWD as Principal Secretary for 8 years.       

He was principal secretary and additional chief secretary in the consumer affairs department for over two years.

Agrawal has authored 50 books on land reforms and land laws. He was also guest faculty at Allahabad University and West Bengal National University of Juridical Sciences even while he continued to remain a civil servant.