Indian Property News on 'October, 2007'

Arvind Mills plans retail expansion worth Rs 400 cr

Bangalore based Arvind Mills will invest Rs 400 crore over the next four years to ramp up its retail operations targeting $1 billion by 2012.

Arvind Mills runs 70 ‘Megamart’ retail stores across India selling multi-brand apparel. The company is planning to come up with 200 more outlets in the specified time, along with introducing a larger format ‘Megamart Outlet Centres’ in top 20 cities.

Chennai would be the first to see a Megamart Outlet Centre which would come over 60,000 square feet. Other cities will be Hyderabad and Pune.

The company has already signed the properties in Chennai, Pune, and Hyderabad for expansion. These stores will be completed by the current fiscal-end, says Sanjay Lalbhai, Chairman and Managing Director, Arvind mills.

In an order to give a push to expansion plans, the company has joined hands with design house JHP-London for designing the stores and is making large investments to train the fashion assistants to supervise the Outlet Centres.

Parsvnath To Bring Luxe Living in Jodhpur

Delhi based Parsvnath Developers will soon come up with a self contained, Mega Township in Jodhpur. To spread over an area of 110.4 acres, the project will be christened as Parsvnath City.

The city will be completed within two years. The builders also launched Royale Villas, a limited edition of exclusively designed independent villas.  The villas are offered in size options of 200, 250, 300 square yards and are a part of Parsvnath city.

Parsvnath City boasts to bring luxe living in Jodhpur. The villas are being designed to bring in a fusion between traditional and contemporary living, says Pradeep Jain, Chairman, Parsvnath Developers.

The company enjoys a wide presence in Rajasthan including residential projects in Bhiwadi and Jaipur.

Elibit Joins Hands with Indian Company

Elbit Medical Imaging Ltd, an Israeli property investment and health care company, has recently joined hands with an Indian company to develop a large scale residential cum commercial complex in Bangalore. The project is expected to generate revenue of more than $4 billion.

The company has entered into a joint venture with a construction company for the project, which will be owned by Elbit and its partner.

The project will include residential neighborhoods with golf course, clubhouses, office complexes, a five star hotel, hospital, and a retail facility. The development is likely to start in the next one year and the project will be over within three to five years.

Such projects will help the company to carve out a substantial niche in Indian property market, says Abraham Goren, executive vice chairman of Elbit, who heads the company’s activities in India.

Lodha Group Buys land in Hyderabad for Rs 225 cr

The Mumbai-based Lodha Group could not keep itself away from the charm of Hyderabad real estate. It has recently acquired 12.9 acres of land for Rs 225.40 crore to develop a high end residential and commercial complex.

The plot is located at Eden Square, Kulkatpally Housing Board Colony. Lodha Group bagged the land in an auction organized by the Andhra Pradesh Housing Board.

Hyderabad real estate has come of ages and the group wants to tap its potential in the best possible way, says Abhishek Lodha, Director, Lodha Group.

The group is also in a process to acquire more land in Hyderabad besides Pune. With over 25 projects under development in and around Mumbai, Lodha Group is now looking forward to other fast flourishing metros in southern and western India.

ETA Star to Launch Realty Projects in Bangalore

UAE based real estate developer ETA Star is planning to enter into the Indian real estate with the launch of new projects in Bangalore.

The company will use its land bank of 300 acres for the projects which will cater to both commercial and residential developments.

In addition, ETA is also coming up with a mixed use property on 70 acres in Bangalore city’s Binnypet area.

ETA Star will launch new developments next year, says company’s executive director Abid Junaid. It also has a Dh11-billion project including residential buildings and industrial zones pin Tamil Nadu.

RBI Suggests to Cut VC Funds

The Reserve Bank of India (RBI) has extended Finance Ministry the ways and means to cut investment flows from venture funds coming into real estate.

These measures are likely to help check the part of the huge inflows of foreign capital, particularly since the last week of July.

The Apex bank has also recommended putting restrictions on investments by Venture Capital funds in sectors that are already developed. Other suggestions by the RBI include bringing foreign direct investments under the approval route.

The bank says to put end use restrictions for investments by foreign venture capital funds. VC funds should be invested in high-risk ventures in which the entrepreneurs are not able to access capital and not in mature sectors such as property.

The RBI has also suggested a time frame within which companies will require to allot shares to foreign entities after receiving advance payments. This has been sought to restrain a practice by Indian companies of using advance payments from foreign companies as loans and then returning them.

Currently, there is no policy for NRIs to invest in commercial real estate and they are allowed to make investments in two residential apartments in India.

The RBI has however stepped up its efforts to absorb the excess liquidity, increasing the cash reserve ratio (CRR) – the proportion of deposits banks must keep with the central bank — one percentage point this financial year.

KSL to bring ‘Empress City’ in Nagpur

KSL and Industries Ltd, is entering into real estate business in India with its flagship project, Empress City – an integrated township to come over an area of 25 acres in Nagpur City.

The company recently participated in two property expo – ‘India Retail Forum (IRF) 2007’ organized by Images Group and ‘Business Spaces 2007’ for IT Parks by The Economic Times.

The malls named as “Empress Malls” was one of the major attractions at IRF.  The model of the project offered a comprehensive view of the entire Township including shopping malls, IT Park, luxury apartments, etc.

The event was managed by IRF and KSL and received enormous responses from India and international destinations.  It turned out to be an interesting as well as a great experience to project their Empress Malls to the retailers the directly.

KSL also succeeded to attract the attention of IT and ITes companies for the upcoming Empress IT Parks at Nagpur, Vapi, Kolhapur, and Navi Mumbai. With the fast flourishing IT industry, more and more companies are competing for commercial property across major towns and cities.

Pai Solebille Plans Foray into Indian Real Estate

Pai Solebille Global Services Ltd, inspired by the growth witnessed by Indian property market, is all set to make a foray into the sector. The company was founded in 2006 and envisions carving out a substantial niche in the IT contraction/outsourcing market.

Pal Solebille sees real estate an area with huge growth, with returns averaging over 25% per annum.

Cities like Bangalore and Pune have emerged as the Information technology hubs which have seen higher than average growth, due to the burgeoning real estate industry.

The company will seek the support of prominent real estate players, thereby ensuring risk-free investment in the market.

La Calypso to Expand across India

Goa-based La Calypso Hotels Private Limited plans to capitalize its expansion across India with a prohibitive amount of Rs 350 crore. The company will develop seven five star hotels by 2009.

La Calypso Hotels will set up hotels in Mumbai, New Delhi, Gurgaon, Bangalore, and Hyderabad. The company will soon come up with a resort on the Mumbai-Pune Expressway.

The expressway Properties will be especially developed to cater to requirements of domestic and international travelers. On the other hand, the other four hotels will target business travelers.

The Hyderabad Hotel is likely to be operational by November 2007. And, the development work for other hotels is in progress, says Kaushal Khanna, chairman and managing director, La Calypso Hotels Pvt Ltd.

Since La Calypso Hotels Pvt Ltd has been established, it has carved a niche in Goa’s hospitality industry with its maiden property along the Baga beach in north Goa.

ICICI Plans $2 Billion for Biggest Indian Real Estate Fund

ICICI Venture Funds Management Co Ltd, India’s largest venture capital company, is planning to invest a whopping $2 billion for the country’s biggest realty fund, thereby tapping the potential of a burgeoning market.

The fund will raise the money in India and abroad. The venture will invest in real estate projects, both commercial and residential, and buy land in 12 largest Indian cities.

Indian property market has been making rapid strides and is set to grow to $90 billion by 2015 from $12 billion in 2005. India’s $906 billion economy is likely to grow more than 8.5 percent in the year to March 31, says the data showcased by Moody’s Investors Service in June.

ICICI Venture was established in the year 1987 and has a venture with New York based Tishman Speyer Properties LP.

ICICI Venture is moving close on heels of HDFC, which raised $800 million in August.  Another inspiration for ICICI venture seems to be Sun-Apollo India Real Estate Fund LLC which has got $630 million earlier in 2007.