Latest Property News on 'Real Estate Developers'

Sunteck Realty inks ties with Oman’s WJ Group

Forging the first Indo-Omani partnership in real estate, Piramal Sunteck Realty Group and Oman’s WJ Towell group have signed an agreement to partner each other in developing high-end and mixed-use properties in and around Muscat.

Construction is expected to begin in the next three months and the project would be completed in 12-18-months, a press release issued here stated. “We are delighted to sign the first Indo-Omani real estate partnership which will look at opportunities in real estate developments in Oman,” Piramal Sunteck Realty’s Chairman, Ajay Piramal, said. Read More »

Indian Realty Developers may come Under Service Tax Net

Real estate developers who till now had been out of the service tax net may soon have to loosen their purse strings, if a recent verdict by the Authority for Advance Rulings in Delhi is enforced by the central excise and customs department. The ruling has sent the realty market into tizzy as any additional cost would mean passing it on to the customers.

A new decision by the Authority for Advance Rulings on Monday has ruled that a real estate developer, who first charges a booking amount from his customers, constructs on his own and then sells residential units on the land owned by him is now liable to service tax. Read More »

Citi Arm Invests Rs 640 cr in 4 SEZs being Developed by BPTP

Citigroup Property Investors has invested Rs 640 crore in four special economic zones (SEZs) being developed by the Delhi-based real estate developer BPTP, picking up a 40 per cent stake in the special purpose vehicle.

This is Citigroup’s second major investment in BPTP after recently picking up 5.89 per cent for Rs 322.50 crore. Citigroup Property has earmarked Rs 2,000 crore for investing in the Indian property market. Read More »

Realty Grim as Cash Cracks begin to Show

INDIA’S booming real estate story is finally showing signs of disquiet, in a throwback to the scary 1990s when the inter-corporate deposit (ICD) market’s high interest rates saw companies borrowing at huge costs to tide over a cash crunch. Then, these desperate borrowers often ended up losing their businesses to bigger players and loan sharks.

In what could be the onset of turmoil, real estate developers, particularly less credit-worthy ones, are today borrowing at 19-20% from big finance companies to stay afloat. Read More »

Parsvnath to Invest $5 Billion in Realty Projects

Real estate firm Parsvnath Developers Ltd plans to invest about $5 billion in the next 3-5 years on different realty projects in India and to increase the land area it will develop, a top official said.

The company intends to have 350 million square feet of commercial area by the end of this fiscal year from 209 million square feet now, its Chairman Pradeep Jain told reporters on Saturday while inaugurating a township in Chandigarh. Read More »

Unitech Launches two Residential Towers in it’s Grande Project

Unitech Ltd, one of India’s real estate giants, announced the launch of Aqua and Terra - two of the tallest towers of its grand residential project - at a Derby event at the Delhi Race Club here Sunday.

The two towers will be a part of the Unitech Grande, which will come up close to the Noida Expressway and would be spread over 347 acres. The company claims that the two towers would be highest residential buildings in the National Capital Region (NCR). Read More »

Construction cost set to zoom on cement, steel price hike

With both cement and steel producers hiking product prices, property prices are set for a big leap, as the cost of construction is likely to go up by 20%. Niranjan Hiranandani, managing director, Hiranandani Constructions said “There will be a significant rise in the cost of construction, by about 20%, due to the rise in cement and steel prices. Selling prices of properties are expected to shoot up substantially.” Hiranandani added that in the past three months, the cost of construction has already shot up by about 10%. According to analysts, steel prices in the domestic market have gone up by 30% in the last six months and 20% in the last three. Cement Companies have hiked prices by Rs 3-4 across the country.

According to Seshagiri Rao, director — finance, JSW Steel, steel producers have been compelled to hike prices owing to rising input costs. He said that Companies will put across their suggestions to mitigate prices to the government at a meeting on Thursday. “Steel Companies should be incentives to set up new capacities. To set up new capacities, that are capital intensive, international investors should have more confidence in the Indian market. For that there should be an open Economy and less interference from the market,” Read More »

Provogue India sells 27% Stake in its Real Estate Arm to Triangle India

Provogue India Ltd has informed that the company has sold 27 percent stake of Mumbai-based, real estate developer, Prozone Enterprises Pvt. Ltd to Triangle India Real Estate Fund, promoted by Old Mutual Investment and ICS Realty for Rs 457 crore. Prozone Enterprise Pvt. Ltd (subsidiary of Provogue (India) Ltd) is a joint venture between Provogue (India) Ltd and UK-based, Liberty International.

The stake purchase in Prozone Enterprise is Triangle fund’s first investment in Indian real estate sector. Read More »

Real Estate Developers Woo Healthcare Firms to meet Government Norms

Healthcare companies are having a field day as more and more new townships are mushrooming across the country.

To meet the government’s mandate to set aside 10% land for facilities such as healthcare and education in townships, healthcare companies are being wooed by real estate developers to set up hospitals in their townships.

With just a handful of corporate hospitals in India, which have both the scale and brand, there is urgency among developers to choose from the few healthcare companies available. “While it is an opportunity for both healthcare companies and developers, the scenario has become more favorable for us. We are being approached by real estates players from across the country, “ says Max Hospitals ED medical operations Pervez Ahmed. Fortis Healthcare has entered into an agreement with DLF to set up 14 hospitals across the country in latter’s townships. Read More »

Deutsche Bank picks up 40% stake in Ramprastha

Deutsche Bank has picked up close to 40% stake in Ramprastha Promoters and Developers, a group company owned by Delhi-based Ramprastha Group for $80 million. Ramprastha Promoters and Developers have been primarily engaged in developing housing projects in the national capital region (NCR).

Confirming the deal, Ramprastha group director Arvind Walia, “We signed the agreement with Deutsche Bank recently.” Mr Walia didn’t specify the stake Deutsche Bank has bought, but he said it was less than 40%. Ernst & Young advised Ramprastha on the deal. Read More »