Latest Property News on 'Real Estate India'

OCUS Group Announces the Launch of its Second Commercial Project in Gurgaon

After the grand success of Ocus Technopolis, located on the Golf Course Road in Gurgaon, Ocus Group has announced the launch of Ocus Technopolis2 — Gurgaon’s first ultra efficient commercial project. Spread over 2.43 acres in Sector 51, Gurgaon, Ocus Technopolis2 is slated to become the location of choice for all retail and commercial needs, claims the company. This commercial edifice will have a range of office blocks/ business suites overlooking the wide and open expanses of Sector 51, giving a clear and unobstructed view of the Gurgaon skyline, along with an open sky retail piazza to satisfy everyday as well as exquisite needs.

With a fascinating and diversified landscaping, Technopolis2 aims to fulfill the desire of those who want to “live their work life,” with serene natural surroundings and modern and premium amenities at their fingertips. Several on-site and nearby amenities in and around Technopolis2, add a unique appeal to the address. It will boast of flexi offices, furnished business suites, business centre, several fully-equipped conference rooms, F&B outlets, multi-cuisine take-away & a world class retail arcade among other facilities.
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HDFC Increases its Retail Prime Lending Rate (RPLR)

After a gap of two years, mortgage leader HDFC has increased its retail prime lending rate (RPLR) by 50 basis points to 14.25 per cent.
Significantly, the lender has not said anything on the continuation of its “teaser rates loans”, launched late last year and which was supposed to end yesterday.

“This (the hike) is in line with the current rates of interest in the economy, which have hardened in the last few months due to rising inflation and tightening of liquidity in the domestic market,” HDFC said in a statement, adding that the new rates will be effective from tomorrow.
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Kishore Gotety Appointed Country Head of Indian Real Estate by GIC

The Government of Singapore Investment Corporation (GIC) has hired Kishore Gotety, who was most recently at RREEF, as country head for India real estate. GIC confirmed the appointment of Gotety as head of real estate for India but declined to comment further. However, the hire suggests GIC believes the opportunity is ripe to start investing in real estate in India.

Gotety was earlier with RREEF Alternative Investments, the global alternative investments business of Deutsche Bank’s asset management division. Real estate is one of RREEF’s core businesses. Gotety joined RREEF at the end of 2007 as head of Deutsche Asset Management’s real estate and infrastructure investment advisory services in India and was widely expected to spearhead the firm’s expansion there.
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Bangalore Based Firms Plans to Raise Rs 100 crore through NCDs

Century Real Estate, a Bangalore-based full-service real estate development company recently raised Rs 100 crore through a private placement of non-convertible debentures (NCDs). The company, which has plans to launch seven projects, will use these funds for project development, according to a company press release. Through these projects, the company would develop a built-up area of 1.7 million sq ft in the next eight months.

Mahesh Prabhu, director-finance, Century Real Estate, said in the release that with the launch of these projects, the company plans to add an inventory of over 1,500 apartments to the existing inventory of 1,200 apartments. The company currently has nine ongoing projects with a total built-up area of 1.2 million sq ft across Bangalore.
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Aditya Birla Group Plans to Expand its Luxury Retail Chain

Aditya Birla Group, promoted Madura Garments Lifestyle Retail today said it will set up its high-end luxury stores -’The Collective’ in three new cities next year, besides expanding in the existing locations. The company currently operates two stores, one each in Mumbai and Bangalore that sell high-end luxury apparel and accessories from brands across the world under ‘The Collective’ banner.

“We are opening the third store in Delhi on Sunday and the plan is to explore opportunities in Chennai, Chandigarh and Hyderabad by next year. We will also look at opening more stores in Mumbai and Delhi,” MGLRC Chief Operating Officer Ram Iyer told PTI. Iyer, however, did not specify the total number of stores the company is planning to set up in 2011 saying that talks were currently on with the real estate developers. The company is likely to make an investment of about RS 40 crore in next year. “One store entails an investment of Rs 8 crore,” Iyer said without specifying the total investment planned. Read More »

TCIL Plans Exit from Real Estate Business

Transport Corporation of India (TCIL) will demerge its real estate and warehousing divisions in next three months and expects to create greater value for shareholders through the hive-off. After the demerger, the company would focus on the core activity of providing logistic services, according to a report published in Financial Express.

“Our board approved the demerger in April this year while shareholders have just given their nod to the proposal. The matter is with the Andhra Pradesh High Court at present. We are expecting a green signal in next 2-3 months,” (TCIL) executive director Vineet Agarwal, said. “The logic in the demerger is that we want to create value for shareholders by focusing on our core activity. The development of real estate and warehouses will be done by the new company,” he added.
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Realtors Express Satisfaction on Tax Exemption in Housing Loan Segment

Realty firms and consultants have expressed satisfaction on the proposal to retain income tax exemption on interest up to Rs 1.5 lakh a year on housing loan, but said the government needs to enhance the limit. “It is a very good thing that the government has retained the exemption. It will have a feel-good sentiment in the market,” said Anuj Puri, country head, Jones Lang LaSalle Meghraj (JLLM).

He said the move will not dishearten the low and mid-income group from going ahead with their buying decisions. The first draft of Direct Tax Code (DTC) was silent on exemption on interest paid on housing loans. However, after adverse feedback from various quarter, the second draft proposed to retain this exemption, which is also incorporated in the bill.
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Consumer Affairs Ministry Gives Green Signal to 49% FDI in Multi-Brand Retail

The Consumer Affairs Ministry has given the green signal to allow 49 per cent FDI in multi-brand retail. It has written a letter to this effect to the Commerce Ministry. India currently allows 100 per cent FDI in cash-and-carry operation and 51 per cent in single-brand retailing. Foreign investors are barred from investing in multi-brand retail. Additionally, the Ministry also sought that a model law be first put in place at the State-level to protect mom-and-pop stores from the impact of the ‘Big Boys’ of retail.

“Multi-brand retail should be permitted with a cap of 49 per cent. A significant chunk of investments should be spent on back-end infrastructure, besides logistics and agro-processing,” the Consumer Affairs Ministry had said in response to the discussion paper floated by the Department of Industrial Policy and Promotion in June on allowing 100 per cent FDI in multi-brand retail. Read More »

Hoteliers Planning to Increase Room Tariff by 10-15%

In an attempt to cash in on the peak winter season and the improved economic scenario, “Hoteliers are planning to increase the average room rates (ARRs) by 10-15 per cent from September 2010 as they expect tourist traffic to improve,” says a report by domestic brokerage Angel Broking.

Although, the report didn’t talk about their plans for the upcoming Commonwealth Games, it is expected that tariffs will increase from October 3-14 on the back of strong demand. Last two years proved dull for the hotel companies as they were forced to slash average room rates by 25-30 per cent due to terrorist attacks in the country that led to lower occupancy levels as people were apprehensive to travel, the report said. Read More »

State Govt Prohibits Use of Petrol Pump Land for Real Estate Purpose in Mumbai

Fascinated by the lure of real estate, owners of fuel refilling centres in the city have long started dreaming of giving up their current business and jumping into the land development bandwagon. Some of them, in fact, have already got the civic body’s permission to change the usage of the land. However, the state government has recently issued a directive to Brihanmumbai Municipal Corporation (BMC) not to allow petrol pump owners to change the designated use of the land. Out of the 257 petrol pumps in the city, 40% are on lease land.

“Although the civic body had earlier decided not to extend the lease, with this government order it would now extend the lease on the condition that the owner would not change the land’s usage,” said a civic official from the Building Proposals department. To cash in on the rising property prices petrol pump owners have been submitting development proposals to the BMC. But what is worrying is the huge disparity in the ratio between petrol pumps and number of vehicles in the city limits. Read More »