Third quarter results of realty companies, including Orbit Corporation and DLF, reflect a gradual recovery in the realty sector. Both the companies reported a decent year-on-year (YoY) growth in sales aided by higher volumes and firm prices.
Though the premium-housing segment saw a revival in demand, budget housing dominated overall sales during the quarter. As a result, rise in operating margins was not in pace with the increase in sales. This also impacted the bottomline. DLF, for instance, reported a YoY decline in net profit during the quarter.
DLF also witnessed a sharp fall in its interest coverage ratio from 8.9 a year ago to 3.4. The ratio, which reflects ability of profits to cover interest costs, fell because interest outgo rose during the quarter. DLF’s topline grew 48% from Rs 1,367 crore to Rs 2,025 crore on a YoY basis.
More : economictimes.indiatimes.com
Burglars decamp with valuables ex-govt officers house
Burglars struck at the house of a 78-year-old retired government officer and decamped with cash and jewellery worth around Rs 13 lakh in south-east Delhi, police said today.
The incident took place in the Kalkaji residence of Dheerender Kumar, a retired officer with the Planning Commission, yesterday when the family had gone to a relative’s residence in Ghaziabad, they said.
The family told police that they had left the house at around 10:00 am after locking the doors but when they returned they found the locks broken and Rs 12 lakh cash and jewellery worth around Rs one lakh were missing, police said.
More : ptinews.com
Posco Looks for Solutions to its India Woes
The Korean steelmaker is hoping a visit to New Delhi by South Korean President Lee Myung Bak can clear the way for its $19 billion in proposed India investments Posco has been one sharp steelmaker. The company, based in Pohang on the Korean peninsula’s southeastern tip, has long been a symbol that South Korea’s old economy can still be innovative and profitable. After all, it is the one Korean company singled out by Warren Buffett as an investment target. His Berkshire Hathaway owns 4.5% of Posco, according to data compiled by Bloomberg.
Then why is Posco (PKX) so high on South Korean President Lee Myung Bak’s to-do list during his state visit to India this week? The company has ambitious expansion plans in India, hoping to invest some $19 billion in the country. For instance, five years ago Posco unveiled plans to build India’s largest steel mill in the city of Orissa on the Bay of Bengal. Because of local opposition, though, the $12 billion project has suffered extensive delays and Posco hasn’t even secured a 4,000-acre property promised for the steel plant.
Lee wants to enlist Prime Minister Manmohan Singh’s support in clearing the way for Posco to proceed with its Indian investments. For Lee, a breakthrough in India will give him a major political weapon ahead of local elections in June. Lee, a business icon of South Korea’s growth-at-all-costs era in the 1970s and ’80s, has pledged to lay the foundation during his five-year term till 2013 to lift the economy into the world’s top seven, from the current No. 13. He also has promised to double per-capita income to $40,000 by 2017. A major presence by Korean companies in India, the world’s second most-populous market, would help Lee find new avenues of growth for his nation.
More : businessweek.com
Civic body’s revised budget to focus on night shelters
The Standing Committee of the Municipal Corporation of Delhi (MCD) will present its revised budget estimates for the 2010-11 fiscal before the MCD House on Wednesday for final approval.
The Standing Committee will also present the budget estimates of the MCD Slum and JJ department for approval.
According to the Standing Committee chairperson R K Singhal, the budget estimates emphasise on increasing the MCD’s revenue and have a special focus on night shelters.
More : indianexpress.com
Unity Infra to develop two housing projects for Rs 500 cr
Construction firm Unity Infraprojects today said it will develop two mixed-use housing projects aimed at middle-to-high income segments in Kolkata and Bangalore with an investment of around Rs 500 crore.
We have already acquired 37 acres of land in these two cities. Work on the projects will kick off next quarter, company Chief Operating Officer Yogen Lal told PTI.
The total cost of developing the projects would be around Rs 500 crore, including Rs 90 crore for acquisition of land.
More : economictimes.indiatimes.com
Don’t go to family courts for in-laws’ property: HC
Except for warring spouses, no relative can be dragged to a family court (FC) and the forum won’t entertain claims on property owned by in-laws.
In a significant judgment on Thursday, the Delhi high court explained the role and powers of FCs. It also made clear whether a daughter-in-law [in one case] has rights over a property owned by her widowed mother-in-law.
The court ruled that a partition suit filed in a civil court by Manita Khurana against her mother-in-law Indra Khurana can’t be transferred to the FC. Manita is fighting to get a divorce from her husband in a Delhi family court.
More : dnaindia.com
Poky little shop pays Rs 9.5 lakh monthly rent
It’s probably the most expensive piece of real estate in the country. But it’s so small you are bound to miss it if you will not look for it carefully.
The property is a store in a bustling market adjoining Safdarjung hospital, across the road from All India Institute of Medical Sciences.
At 133.37 square feet it’s tiny — possibly no bigger than a modest kitchen — but it went for Rs 9.52 lakh monthly rent at a recent auction by the New Delhi Municipal Council.
More : hindustantimes.com
developers report increasing luxury property sales in india
India property looks set for a strong recovery in 2010 as dozens of developers report surging sales for their luxury developments. Surprisingly the reports of surging sales are not only in Mumbai and Delhi, but also in Hyderabad, Pune and Bangalore.
Indiabulls Real Estate has sold 100 apartments in its 65-storey ‘Indiabulls Sky’ in the Lower Parel area of Mumbai in the past four months.
In Hyderabad, Dax Properties Pvt Ltd (part of Countryside Realtors Pvt Ltd) has sold 65 to 70 villas in its Golf Retreat Project since the launch last month. Costing Rs 1.2-2.5 crore each, they vary from 500 sq yards to 2,000 sq yards.
More : property-abroad.com
Awareness programme on Intellectual Property Rights at NID
As a part of its endeavor to facilitate and sensitise design fraternity about Intellectual Property Rights (IPR) in accord with the activities of IPR Cell in NID, the institute has started a series of one day awareness programmes on “Industrial Design registration and Protection” jointly with office of Controller General Patents, Designs & Trademarks, Government of India.
While the awareness programme was started in NID, Ahmedabad on Saturday, the programme will also be held in other cities including Pune, Bangalore, Delhi and Kolkata with the creative Design Professionals and Innovators in these places.
A key note address from Justice RR Tripathi was followed by special addresses and sessions from various experts from across the country and faculties of NID.
More : dnaindia.com
Delhi ‘enemy’ property land in mafia net
Delhi’s land mafia has grabbed property worth crores of rupees that were evacuated by people who migrated to Pakistan during Partition, it has emerged. This acknowledgement comes from the top brass of the Delhi government in a letter written by state revenue minister Raj Kumar Chauhan. The letter was sent to lieutenant governor (LG) Tejendra Khanna and chief minister Sheila Dikshit, who then instructed the revenue department to probe the matter.
Describing the situation as a very serious matter, Chauhan seconded the Union home ministry’s suggestion to notify and ban any further mutation or registry of enemy properties in Delhi.
All property left behind by people who migrated to Pakistan during Partition are classified as enemy property. They are owned by the Mumbai-based Custodian of Enemy Property for India (CEPI) under the Union home ministry. Following the approval of this communiqué by Khanna, Vinay Kumar, joint secretary in the revenue department, issued a notification on January 14, banning the registry or mutation of all enemy property on the list.
More : indiatoday.intoday.in
Cities see boom in sales of luxurious housing
The countrys largest real estate developer, DLF, sold apartments worth Rs 1,000 crore in December. This is the highest monthly sale the company has recorded in its history. There are many developers like DLF who have seen a surge in the sale of apartments across the country in the quarter ended December, especially in the luxury and semi-luxury category.
A large chunk of DLFs sales are also from the luxury and semi-luxury segments. It sold 76 apartments of Rs 5 crore each in The Magnolias, Gurgaon, netting nearly Rs 400 crore. The project has apartments of 5,825 sq ft each and duplexes and penthouses of 9,000 to 10,000 sq ft each.It made another Rs 200-300 crore each in its relaunched projects, DLF Belaire and Park Place, in Gurgaon. Belaire had a price of Rs 2-3 crore each and Park Place of Rs 1.25-1.5 crore.
Indiabulls Real Estate has sold 100 apartments in its 65-storey Indiabulls Sky in the Lower Parel area of Mumbai in the past four months. It has also recently launched Indiabulls Sky Suites with full-age advertisements, promising A head in the clouds experience. While, apartments in Sky were priced at Rs 6.75-22.5 crore, depending on the size, Sky Suites are expected to be higher.Indiabulls is also working on a super-luxury, By invitation only, Indiabulls Sky Forest, where homes are more than 10,000 sq ft each and priced 10-20 per cent higher than Sky projects.Buoyed by response for its premium housing projects, Orbit Corporation, another Mumbai-based developer, says it will launch one luxury project in the city every quarter.
More : bignews.biz
CRISIL assigns IPO grade 2/5 to DB Realty
CRISIL has assigned IPO Grade 2/5 to the proposed initial public offer (IPO) of D B Realty (DBRL), in its report dated January 14, 2010. The company plans to raise Rs 1,500 crore via the IPO.
The report says, This grade indicates that the fundamentals of the IPO are below average relative to the other listed equity securities in India. However, this grade is not an opinion on whether the issue price is appropriate in relation to the issue fundamentals. The grade is not a recommendation to buy/sell or hold the graded instrument, or a comment on the graded instrument’s future market price or its suitability for a particular investor.
The report also says, The grading reflects DBRL’s lack of operating history in real estate development. However, the presence of its experienced promoters, Mr Vinod Goenka and Mr Shahid Balwa, in the real estate development business for more than a decade provides execution track record comfort. The promoters have jointly developed nearly 15.9 million sq ft of residential, commercial and retail real estate projects in and around Mumbai. The grading has considered the highly fragmented nature and severe competition in the real estate industry. However, DBRL’s concentration in and around Mumbai is a key positive. Mumbai real estate market is expected to recover faster compared to other markets.
More : moneycontrol.com
Jury seated for ex-reservoir official
Seven men and seven women have been sworn in to hear the federal case against the former executive director of the Poverty Point Reservoir District.
Opening statements are scheduled Tuesday.
The jury was seated Monday in U.S. District Judge Robbie James’ court to hear the charges against Mike Thompson, who is accused of using district employees to perform work on his private property.
There were nearly 150 instances from 1997 to 2002 in which an employee purportedly billed the district for performing personal work for Thompson, prosecutors have said.
More : wxvt.com
Buyers again allot flats to themselves
Frustrated with the slow process of allotment of flats by the Registrar of Cooperative Societies, at least 500 more members of housing societies in Dwarka conducted self-draw of lots and allotted flats for themselves on Sunday. This comes after the Registrar of Cooperative Societies declared null and void the self draw of flats by 1,000 members in Dwarka last week. Flat owners said another 1,000 flats are ready for self draw next week.
The three societies for which the draw was held on Sunday were Sant Sundar Das, Naval Technical Officers and Bharat Jagriti group housing societies. ‘We will go ahead with self-allotment. People, who have already made the payment for their flats and are waiting for allotment for long don’t want to take to the street or damage public property in protest against the delay. The government agencies must understand that we have taken this step after exhausting all our resources, said Ashok Kumar, a retired senior executive of a Navaranta PSU who is heading the process of self-allotment of flats.
Kumar said they waited for long but the system failed to deliver. We got frustrated. We knew that we own flats in a particular society, but did not knew which one belonged to whom. After the self draw we have got our flats,’’ he said.
More : timesofindia.indiatimes.com
Thompson federal trial set to start
Former Poverty Point Reservoir District Executive Director Mike Thompson of Delhi will be in federal court Monday to begin his trial on charges of violating federal law by using district employees to perform work on his private property.
Thompson was indicted by a federal grand jury in Shreveport in June 2007 on one count of violating the Hobbs Act.
According to the U.S. Department of Justice, the Hobbs Act prohibits actual or attempted robbery or extortion affecting interstate or foreign commerce. The Hobbs Act was created to combat racketeering in labor-management disputes but is frequently used in connection with cases involving public corruption, commercial disputes and corruption directed at members of labor unions.
More : thenewsstar.com
Overseas Indians hesitate to take the property plunge on home turf
Even with a vast wealth base, overseas Indians are reluctant to invest in real estate in India. Despite the government having relaxed its property ownership laws for Non Resident Indians (NRIs), on Day 1 of the Pravasi Bharatiya Divas, the NRIs had some horror stories to narrate about investing in property in India.
I waited 20 years before investing in property in Delhi. I was worried that I would get cheated. Even after taking all the requisite precautions, I quickly discovered that the previous owner of my property had sold the same property to two people at the same time. I took the case to court, where there has been no resolution for the last eight years, during which time four different judges looked into the case, said an NRI from Washington DC.
The lackadaisical approach adopted by Indian courts came in for a lot of criticism during a day-long session titled Property Related Issues of NRIs/PIOs held at Vigyan Bhawan on Thursday. After the case was filed, I flew down on three different dates from Washington to attend the hearing, but each time the defendant excused himself from the hearing by offering different excuses through his lawyer. Each time the case was adjourned, the NRI said.
More : expressindia.com
DLF to set up Industrial Park over 1200 acre in Mohali at Rs. 2700 crore
The DLF Home Development Ltd. evinced keen interest to set up an Industrial Park over 1200 acre in Mohali district, Punjab at a cost of Rs. 2700 crore under Super Mega Mixed Use Industrial Park Policy.
Making a presentation to the Punjab Chief Minister Parkash Singh Badal at Kapurthala house, New Delhi this afternoon, senior General Manager of DLF Group Ajay Chug assured the Chief Minister that the group would complete the entire project by December 2010.He said that the project would provide direct and indirect employment to 275000 persons.
In another presentation made by the Director Amtek Auto Ltd, Sanjeev Bhasin apprised the Chief Minister that Amtek Group had already approached the state government for facilitating in setting up their forthcoming Mega Project “Amtek Railcar Industries Pvt. Ltd. (ARIPL) for manufacture of different type of wagons for Indian Railways, private operator in India, Southeast Asian Market and Middle East Market.
More : punjabnewsline.com
MCD to raise Rs.2,000 cr selling slum properties
The Municipal Cooperation of Delhi (MCD) on Wednesday said it expects to raise nearly Rs.2,000 crore by selling some of the commercial sites
under its slum department.
There are 11 commercial sites which we are hoping to auction. By selling them we expect to raise an amount of around Rs.2,000 crore, Leader of MCD house Subhash Arya told.
We would entrust their auction to DDA (Delhi Development Authority) which would carry out the procedure to ensure optimum income. The revenue generated out of auction would be deposited in a fixed deposit in a nationalised bank and we would utilise only the interest part of it for development works in the slums, he added.
Source : economictimes.indiatimes.com
JFP Group projects in foreclosure
Four local real estate properties associated with radio mogul Terry Jacobs are in foreclosure, with claims and judgments of unpaid debt totaling $29 million.
Banks filed against the properties in Hamilton County Common Pleas Court in November and December. The suits were filed against limited liability corporations associated with Kenwood-based JFP Group, a residential and commercial developer owned by Jacobs and his son Jeff.
The foreclosed properties include McMillan Manor, a 134-unit student apartment complex in Mount Auburn near the University of Cincinnati; Kenwood Pointe, a never-built 24-unit condo development in Madisonville; a vacant 4.5-acre Delhi Pike site that had housed Delhi Flower and Garden; and Anderson Towne Place, a never-built retail, condo and movie theater development adjacent to Anderson Towne Center on Beechmont Avenue.
More : cincinnati.com
Godrej Properties surges on debut, cheers realty
Shares of Godrej Properties surged nearly 20 per cent after listing at a 5.05 per cent premium on its debut on Tuesday, in a first listing by any property firm in over two years.
The strong start would serve to cheer realty firms that had till recently been hard-pressed to raise funds for projects. At least 16 Indian developers have filed papers for public offers since September, looking to raise a total of about $6 billion.
Godrej Properties, a unit of Godrej Industries, had raised about $100 million through its initial public offering of 9.4 million shares, which was subscribed four times. The firm had fixed its issue price at the lower end of Rs 490-530 range.
More : economictimes.indiatimes.com