Aitken Spence Hotels latest foray into the Indian market, takes the company to New Delhi, where a brand new property is due to open February / March 2010.
The 130-roomed, Ramada Hotel & Convention Centre will be laid out on a spectacular property spanning twelve acres, just ten minutes from the international airport on the Gurgaon airport expressway, in the famous Celebration Gardens, one of the foremost outdoor wedding locations in New Delhi.
All rooms will be well-equipped with the latest amenities, like high-speed wireless internet access, multimedia hubs and laptop safes, as well as additional features such as flat screen televisions with satellite channels and bathrooms with bathtubs. Room types will include six suites and villas, all elegantly designed in a combination of timber and Italian marble.
More : dailymirror.lk
5-stars, political parties and industry body have property tax outstandings depriving NDMC of Rs 850 cr
Top hotels, industrialists and politicians are among those who owe the New Delhi Municipal Council (NDMC) over Rs 850 crore in outstanding property tax dues, hobbling the civic body’s spending on public projects.
The outstanding amount covering about 400 property in the NDMC area is nearly half the council’s annual budget–for the financial year 2009- 10 it is Rs 1,655.65 crore.
The huge backlog in tax dues has deprived the civic body of crucial funds when it is digging deep into its resource base to spruce up areas under its jurisdiction ahead of the Commonwealth Games.
More : indiatoday.intoday.in
Commercial properties in India average up to 10% ROI per year
The average rate of return of commercial properties in India is currently about eight to 10 per cent per annum, a real estate developer said.
The average rate of return for a commercial property is around eight to nine per cent per annum across the tier two cities. Metros such as Delhi and Mumbai are showing good growth rates, with capital appreciation in certain places recording 10 to 12 per cent growth per annum depending on the developer, said Veerendra Patil, Sales Manager, Hirco.
India is looking attractive as it promises capital appreciation on a long-term basis, he added.
Sunil Jaiswal, CEO and President, Sumansa Events, said: Commercial properties are looking particularly attractive from an investment point of view within India. If you look commercially, the market is booming in the country. Prices vary from city to city, but the return-on-investment is high.
More : business24-7.ae
Sri Lanka Aitken Spence to manage Ramada Hotel in Delhi
Sri Lanka’s Aitken Spence Hotels group said it has struck a deal to run the new Ramada Hotel & Convention Centre in New Delhi scheduled to open in February or March next year.
Aitken Spence Hotels said in a statement its latest foray into the Indian market is meant to strengthen its presence in northern India.
The 130-roomed, Ramada Hotel & Convention Centre is on a 12-acre property ten minutes from the international airport on the Gurgaon airport expressway.
Malin Hapugoda, Managing Director, Aitken Spence Hotels, said the group was approached by the owners of the Ramada property because of its hotel operational and strategic management skills.
More : lankabusinessonline.com
Delhi HC settles HUF property rights dispute for good
A woman and her children have the right to seek prohibition against alienation or disposal of properties belonging to a Hindu undivided family (HUF) even when their estranged husband/father and in-laws/grandparents are alive, the Delhi high court has ruled.
The children by birth acquire an independent right of ownership in coparcenary [joint inheritance] property and as a consequence of such an ownership, the possession and enjoyment of the property is common, the court said, setting at rest a prolonged controversy over the rights of a Hindu wife and her children over an ancestral HUF estate.
If the respondents (in-laws/grandparents and father/husband) do not lead the evidence rebutting the claim made by joint inheritors, a court cannot penalise the plaintiffs by dismissing their lawsuit.
More : dnaindia.com
Pakistan’s Minority Minister orders inquiry into Gurdwara land deal
Taking note of the deal of a land belonging to the Sikh Gurdwara in Pakistan, the Pakistan federal minister of minority has ordered an inquiry and directed authorities to submit the report at the earliest.
Saying he has ordered an inquiry in this (Gurudwara land deal) case and whosoever be the guilty would brought to justice, the federal minister Shahbaz Bhatti told ANI over phone that the Government of Pakistan is committed to safeguard the life of all belonging to the monitories living in Pakistan.
Bhatti even said that after the investigation, action would be taken against the culprits and went on to add: “Even if it was found that any high official was involved and proved guilty, he would not be allowed to escape from law.
More : thaindian.com
HC orders status quo on properties of Ranbaxy’s ex-patriarchHC orders status quo on properties of Ranbaxy’s ex-patriarch
A status quo on title and possession is to be maintained on four properties that were owned by the late patriarch of the Ranbaxy family, Bhai Mohan Singh, and his wife, according to an order of the High Court here. Further proceedings will be taken up in March 2010.
This order’s ambit includes the 15, Aurangzeb Road, property in Delhi, where Max India Group Chairman Analjit Singh resides.
The parties are directed to maintain status quo, as regards title and possession to the suit properties, till further orders,” the court said in a response to a petition filed by Bhai Manjit Singh in 2006.
More : business-standard.com
Parsvnath to raise Rs 240 cr via stake sale
Delhi-based realtor Parsvnath Developers plans to raise around Rs 240 crore by diluting its holdings to private equity funds in its various residential as well as commercial projects. The process is expected to be complete by the end of fiscal 2009-10, company chairman Pradeep Jain told FE.
We are in constant talks with investors for funding requirements. I am reasonably confident that we would be able to raise Rs 242 crore by the end of this fiscal,” Jain said.
So far, Parsvnath has raised Rs 115 crore from Red Fort Capital in two tranches — Rs 168 crore from qualified institutional placement (QIP) and Rs 75 crore from Sun-Apollo, a real estate private equity fund.
More : financialexpress.com
DLF Board OKs Merger of Caraf Builders With Unit
The directors of DLF Ltd. late Tuesday agreed to merge Caraf Builders and Constructions Pvt. Ltd. with the company’s DLF Cyber City Developers Ltd. unit in a move likely to help India’s largest property developer by sales increase revenue.
DLF said one of the key strategic objectives of integrating Caraf Builders–held by DLF founder K.P. Singh and his family–with Cyber City is “consolidation of the group’s rental assets under DLF to further enhance the stable rental incomes and cash flows.”
The company said a merger will help the creation of a rental conglomerate with interests in industrial parks, IT parks, commercial assets and retail malls.
More : online.wsj.com
DLF board may clear DAL merger Tuesday
DLF Ltd, the largest real-estate developer in the country by market capitalisation, is set to merge DLF Assets Ltd (DAL), a company held by promoters Kushal Pal Singh and Rajeev Singh, and make it a subsidiary to synergise the businesses, an official familiar with the process said. Currently, DAL is a separate legal entity.
Stage Two of the plan is a listing of DAL on the Singapore real estate investment trust market next year. DLF is likely to convert Rs 2,800 crore of receivables from DAL into equity and, along with a share-swap agreement between another of its subsidiaries and DAL, take a controlling stake in the entity.
Making DAL a subsidiary would boost DLFs rental income. It also allows DLF to tap a fund source – discounting its lease rentals – to reduce debt.
More : dnaindia.com
Banker with an interest in real estate
Property makes up a substantial portion of Mr Sumit Aggarwal’s investments. His confidence in it was bolstered by a series of good experiences from his real estate investments in India, London and Singapore.
The 40-year-old is head of transaction banking at Standard Chartered Bank Singapore. He grew up in India and received his commerce degree from Dronacharya Government College, Gurgaon, in 1988 and an MBA from the Institute of Management Technology, Ghaziabad, in 1990.
He does not speculate in properties but picks them up using a methodical approach.
More : business.asiaone.com
Casino major MGM Mirage to launch non-gaming luxury hotel brands in India
MGM Mirage, the Las Vegas Strip’s largest casino owner, is entering India with non-gaming luxury hotels as the struggling gaming and hospitality giant turns to emerging markets like India and China to get over the recession blues.
India is one of the fastest growing regions for both business and leisure travel. In the next few months, we would launch two of our brands — Bellagio and MGM Grand — in the country, said Rishi Kapoor, vice president (development), India, at MGM Mirage Hospitality, the non-gaming hotel business of the second largest gaming in the world. We are in advanced stage of talks with developers for the same,” he added.
While Bellagio is positioned as the super luxury brand, MGM Grand is positioned a tad lower. The company will also bring in a third luxury hotel brand, Skylofts. The company is already pursuing development opportunities in select locations across the country, Mr Kapoor said.
More : economictimes.indiatimes.com
Will house tax hike plug hole in MCD’s coffers?
MCD might have proposed an increase in property tax for both residential and commercial properties, services - but at the other end, crores of rupees are still spilling out of its coffers due to a lack of proper checks and balances.
Salaries paid to ghost employees is not the only problem. MCD is also losing money because of dishonoured cheques received as payment for property tax. The civic agency’s budget says it loses crores in this manner, but there is no accounting of the exact amount. MCD has now decided to set up a committee at the central level to monitor the matter and initiate action against defaulters.
Said MCD commissioner K S Mehra: Most dishonoured cheques we get are meant to be payment for property tax. The matter is not always pursued. But action will now be taken against defaulters.
More : timesofindia.indiatimes.com
Property giants bet big on Goa
Property majors DLF, Parsvnath and a host of others are reviving their interest in tourist hotspot Goa, hoping that renewed investor interest will drive their home sales.
The state, which has around 2,000 apartments on sale, recently saw DLF, the country’s largest property developer, launching its River Valley Holiday Home project, wherein apartments were priced at Rs 25-55 lakh. The developer is said to have sold almost 140 apartments, out of the 250 on sale.
We are marketing this project to investors looking for holiday homes across the country. The idea is to give a market for people who want to invest in mid-income houses. We are already getting good response for the project,” said Rajeev Talwar, group executive director, DLF Ltd.
More : business-standard.com
Value buying in realty is back
Value buying is back in business. Realty buyers are primarily looking at the sub-40 lakh category to fulfill their dream home aspirations and it is the 2BHK which has emerged as the preferred format for buyers in these times.
SundayET spoke to a cross section of real estate developers, brokers and bankers to assess the ground situation on the kind of housing format and home loan size that is now gaining maximum flavour.
Most developers agree that the current hotselling flavour of the market is apartments ranging between Rs 25 to 40 lakh. According to Rajeev Talwar, group executive director, DLF, it is primarily the 2 and 3 BHKs which are finding buyers. As far as prices are concerned, the sub-40 lakh is selling well in Bangalore. We have sold 1,200 units in Bangalore since the beginning of February this year. Similarly in Delhi we have sold 2,500 units since the beginning of the Financial Year. We will be coming up with more affordable housing projects across locations over the next three years.
More : economictimes.indiatimes.com
Rocky Road to Real Estate Riches
As conditions in India’s property market have improved in recent months, several real estate companies have lined up to tap your pocketbook. If you’re looking to participate, remember that these stocks are not necessarily cheap, and more importantly, they can be very volatile.
When there is a fall in the market, these stocks (typically) fall much faster than the market, says Alex Mathews, head of research at Geojit BNP Paribas Financial Services Ltd.
The flurry of real estate stock offerings set to hit the market starting Wednesday includes real estate developer Godrej Properties Ltd., a unit of Mumbai-based conglomerate Godrej Industries Ltd. Godrej plans to raise around 5 billion rupees ($107.3 million) in an initial public offering which closes on Dec 11. It is expected to be followed over the next few months by a number of others planning to raise more than 200 billion rupees, including Delhi-based Emaar MGF Land Ltd., Lodha Developers Ltd. of Mumbai, and Sahara Group’s Sahara Prime City Ltd.
More : online.wsj.com
No takers for ‘affordable’ housing in NCR
It was touted as a realization of the ultimate middle class dream houses that fit the pocket. Just that it went bust. Months after developers flooded the market with housing projects tagged as affordable, there seem to be very few takers. The reason: the actual area of many of these flats is far less than usual. Others are being rejected because of poor location.
Said Renu Chaddha (name changed), who had bought a flat in an affordable housing project that was launched in Faridabad earlier this year, and is looking for another property to invest in. At that time, only a few developers had launched their projects. All of them had good locations, so my husband and I decided to invest. It was only around Rs 20 lakh.’ Six months down the line, Chaddha says that the newlylaunched housing projects have left her without any inclination to buy.
The usual room specifications are 1200-1400 sq.ft. for a two bedroom flat. But most of the projects coming out now and being marketed as affordable housing measure between 800-1 ,000 sq.ft, admitted Pradeep Mishra of Sainik Estates, a local brokering firm.
More : economictimes.indiatimes.com
Capital tax exemption can be claimed on purchase of a new property
Vikas Vasal, partner, KPMG India says that capital tax exemption can be claimed on purchase of a new property. I sold nine residential vacant plots on different dates (one in June, 2009, two in July, 2009, three in August, 2009, and three in October 2009) for Rs 30,43,000. Can I invest the entire amount in another residential vacant plots to claim income-tax exemption? What is the time limit for reinvesting in another property to claim the income-tax exemption? Alternately , can we reinvest part amount in vacant residential plots and park some in capital gains savings a/c so that we can book an apartment under construction in another city and make the payments as the construction progress. What is the time limit for utilising the amount in capital gains account?
Prakash Bhandari
As per Section 54F of Income-Tax Act, 1961, an exemption from the capital gain tax arising on sale/transfer of long-term capital asset (other than a residential house) can be claimed, if the tax payer purchases a residential house (new property) within one year before or two years from the date of sale or constructs a new property within three years from the date of sale, subject to prescribed conditions.
The new property should consist of residential house — either purchased or constructed on the plot of land. The capital gain proceeds to the extent not utilised before the due date of filing the return of income (for the year in which the capital asset was sold) can be deposited in the prescribed capital gains account scheme. This amount so deposited should be utilised for the purchase/ construction of new property within the period as specified above to avail the exemption in respect of capital gains tax.
More : economictimes.indiatimes.com
Godrej Properties sets IPO price band
Godrej Properties, the realty arm of Godrej Group, is coming out with an initial public offer to raise up to Rs500 crore by offloading 13.5% stake. The issue is open between December 9 and December 11, with a price band of Rs490-530 per share.
The company had earlier decided to go for a pre-IPO placement which has now been cancelled after Sebi’s Issue of Capital and Disclosures Regulation (ICDR), and has opted for an anchor investor who would subscribe to 18% of the issue.
Uday Kotak, head, Kotak Investment Banking, said, The issue size is Rs462-500 crore which is not a big, thus there would be no discounts to the retail investors.
More : dnaindia.com
Dip in rentals boosts commercial realty mkt
Following the correction in commercial realty rates in metros by 20% to 40%, top builders expect sales to improve by 50% in Q3 and Q4 of 2009-10. In the first two quarters of the fiscal, sales of office space rentals grew 10% to 15%.
To tap the growing opportunity, large builders in various metros are offering ready-to-possess offices, shops and commercial plots, and under-construction offices at 15% to 20% discount.
The correction in commercial real estate rates comes at a time when the general sentiment is buoyant. There is ample cash flow in the market. However, the correction in the office space rentals is 15%— lower than that of the residential real estate sector.
More : financialexpress.com