According to reports, DB Realty had formed a joint venture with Man Ajwani under the name DB Conwood Man Ajwani to develop the project and in mid 2009, got a letter of intent from PCNTDA.
Top Stories
Two realty deals cancelled in 2 weeks
Two Real estate companies deal have been cancelled. Firstly, Oberoi Constructions, a wholly owned subsidiary of Oberoi Realty Ltd has terminated the Juhu centaur hotel deal. The company’s arm Oberoi Constructions Ltd is a 50% joint venture in Siddhivinayak Realties Private Ltd. SRPL had entered into an agreement with V Hotels for purchase of a hotel property, namely , Centaur Hotel located at Juhu beach. The deal was under negotiation following a dispute between the parties. Following the termination of the deal, V Hotels is liable for a refund of about Rs. 730 mn. Another deal includes the DB Realty’s multi-crore township project in Pune has been scrapped.
According to reports, Pimpri-Chinchwad New Town Development Authority (PCNTDA), a local government body in Pune, has canceled the project of saying it had negated “bidding for the selection of the developer”. The authority has refunded the deposit of Rs. 50 crore to the developer for the project that was to come up at Bhosari, 14 km from Pune, reports added.
According to reports, DB Realty had formed a joint venture with Man Ajwani under the name DB Conwood Man Ajwani to develop the project and in mid 2009, got a letter of intent from PCNTDA.
Quote of the week
Pirojsha Godrej, Executive Director, Godrej Properties said, “We are very happy to have entered into two LLP’s with Godrej & Boyce. These are the second and third developments after our project, The Trees, in Mumbai that we will do in partnership with one of our Group companies. We look forward to additional future opportunities to partner with our Group companies. Our aim will be to create outstanding projects that offer our customers an environmentally friendly, well designed living environment.”
Allahabad HC delays hearing on Noida land acquisition
The Allahabad High Court reportedly deferred its verdict on the legality of land acquisition in two villages of the Greater Noida area popularly known as Noida Extension. HC will reportedly announce its verdict on July 26 on the plea of farmers and villagers from Roja Yaqubpur and Bisarakh Jalalpur villages, who went to court against the Noida Authority’s decision to acquire their land. According to reports, the court had already cancelled land acquisition in some of the villages of Greater Noida adding that the HC will hear pleas of farmers from Itheda, Haidarpur and four other villages on July 21.The HC on July 19 had overturned acquisition of nearly 600 hectares of land in Gautambuddh Nagar district. The verdict serves a blow to builders as well as potential home owners, as a lot of people have invested in the housing projects coming up in the area.
Interview with Vishal Gupta, Managing Director, Ashiana Housing Limited
In Focus Stories
IIFL recommends ‘Sell’ on DLF
IIFL Institutional Equities, a part of the IIFL Group, one of the leading players in the Indian financial services space, recommends ‘Sell’ on DLF with a target price of Rs. 180.The brokerage expects sales to continue to weaken considering the company’s dull guidance for FY12.
The constant rise in working capital on Rs. 11 billion of land acquisitions and rise in net debt by Rs. 57 billion in FY11 due to the redeeming of preference shares of SC Asia in DAL and those of Lehman Brothers in some subsidiaries would also pressure the company, IIFL said.
There was lower RoE due to slowdown in launches and contracted sales and a fall in profitability due to rising raw material and labour costs. Thus, we do not see a trend reversal in FY12 due to muted guidance, IIFL said.
The brokerage does not expect debt to reduce in FY12 and has cut its FY12 and FY13 EPS forecasts by 11% and 17% respectively. The report was published by IIFL’s Institutional Equities Research desk.
IIFL recommends ‘Buy’ on IDFC
Domestic News
Godrej Properties to develop 2 residential projects in Hyderabad and Thane
Godrej Properties Ltd. has formed two LLPs with Godrej & Boyce (G&B) to develop residential projects in Hyderabad and Thane.Godrej Buildcorp LLP (GB LLP) will develop the 9.16 acres land parcel at Moosapet, Hyderabad. The approximate developable area will be 2 million square feet. This is a profit sharing arrangement with GPL getting 35% of the profits from the project.
Godrej Property Developers LLP (GPD LLP) will develop the 3 acre land parcel at Thane. The approximate saleable area will be 0.26 million square feet. This is also a profit sharing arrangement with GPL getting 32% of the profits from the project.
Parsvnath plans to pull out six SEZs projects: report
Parsvnath SEZ Ltd, a Parsvnath Group subsidiary is planning to postpone six SEZs projects which includes Uttar Pradesh, Rajasthan, Haryana, Tamil Nadu and Maharashtra, according to a report. The report stated that the company had earlier been granted in-principle approval by the government.
Parsvnaths' request for pulling out from the SEZ projects and other applications will come up before the inter-ministerial Board of Approval (BoA), which is scheduled to meet on July 22, says report.
Mahindra to acquire Mumbai's Nepean Sea Road bungalow: report
The Mahindra Group's real estate arm is planning to pay Rs. 2.7bn to acquire a three-storey bungalow on south Mumbai's Nepean Sea Road, according to a report.The report stated that the bungalow, named Gulistan, occupies around 13,000 square feet of land opposite Priyadarshini Park and is owned by a special purpose vehicle set up by one of Mumbai's top builders, Orbit Corporation.
Arun K Nanda, chairman of Mahindra Lifespace, the real estate arm has reportedly said that it has signed a term sheet, or a preliminary agreement, with the current owners and made an advance payment of Rs. 110mn. If the deal went through, the Mahindras would continue to be a tenant, paying rent to Lifespace, says report.
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