Real Estate Gurgaon

Persistent demand and lack of fresh supply has fuelled an about 7 per cent increase in commercial property rentals in the city and the National Capital Region in the April-June quarter, says a new report.

"The rentals in the central business districts (CBDs) continue to rise due to lack of fresh supply," said the report by global realty consultant DTZ.

It, however, observed that the rentals in the secondary business districts (SBDs) have risen by 5-7 per cent in April-June quarter compared to 15 per cent growth in the last quarter.

Overall absorption of commercial 'grade A' office space in the quarter reduced to 8.1 lakh sq ft compared to 15 lakh sq ft last quarter.

It noted that Gurgaon alone has absorbed about 5.4 lakh sq ft of office space. Of this, 50-55 per cent demand has come from the IT/ITES sector. The rentals in the city were ranging in between Rs 80-150 per sq ft for a month.

"With continued demand and limited fresh supply over the next few months, rentals in CBDs and SBDs are expected to continue their upward movement," the report commented.

It further said that rentals in Noida are expected to increase marginally over the next 3-6 months with a number of Grade A structures getting ready during this period.

As the Delhi metro rail project to Gurgaon is in progress, fresh demand in this NCR city is likely to push up rentals further, the report added.

Source : The Economic Times

Real estate firm Ansal Properties and Infrastructure is planning to come out with a follow-on-public offer to raise about Rs 1,000 crore for its expansion plan and to meet the development cost of existing projects.

When asked about the company's plans to come out with a FPO, Ansal API Chairman Sushil Ansal said: "We have not yet decided on the timing of the issue."

He was speaking to reporters here on the sidelines of FICCI's press meet on real estate.

Ansal said the company would issue fresh equity to raise about Rs 1,000 crore.

"The promoters holding at present is 74 per cent and after the public issue it would be 55 per cent," he added.

The national-capital based company is also planning to raise $250-300 million fund from either London or the US for hospitality ventures.

On hospitality fund, Ansal said, "work is going on" and the company would raise around $250-300 million from either the US or London.

"Most probably it will be from the US," he added.

The company had earlier announced plans to develop about 30 hotels across the country and had floated a special purpose vehicle with Ambience Hospitality Management.

Ansal API has recently tied up with IL&FS Investment Managers for a township and an IT SEZ in Gurgaon with an investment of $125 million (about Rs 515 crore).

Source : The Economic Times

Real estate developer Uppal Housing Ltd said it will invest about Rs1,500 crore by March to expand its operations outside the Capital and its suburbs. The company is also considering a share sale in the near future.

Uppal, primarily a Delhi-based developer, plans to expand into Mumbai, Pune, Hyderabad and tier II or smaller cities such as Chandigarh. “We have always been a Delhi-focused company,” Gian Bansal, Uppal director and chief executive officer (infrastructure), said. “But we now want to have a wider presence.”

Real estate developers such as DLF Ltd, Unitech Ltd, and Parsvnath Developers Ltd are increasingly expanding their presence outside Delhi and its suburbs as real estate demand slows down in Delhi and its suburbs such as Gurgaon and Noida as real estate demand slows down in these areas.

Uppal plans to raise funds for its expansion through internal accruals and project-level private equity investments. Uppal is also looking at an initial public offer. “It is something we will do eventually...once we build the company’s valuation, we will look at diluting stake,” Bansal said.

The company is bringing in shareholders in project-specific special purpose vehicles, Bansal said. In June this year, Uppal which had formed a special purpose vehicle with Luxor Group for the development of a 67-acre special economic zone (SEZ) in Gurgaon diluted its stake in the SPV to Trinity Capital, a US-based boutique investment banking firm, for over Rs300 crore.

The company is now in talks with foreign investors to jointly develop its multiservice SEZ at Gurgaon. “The 263-acre zone will require an investment over Rs5,000 crore in five years,” Bansal said. “We will dilute our stake in the special purpose vehicle to raise funds.”

Uppal has received approvals for both the SEZs. Work on the multiservice zone will start in December, Bansal said.

Uppal will be developing three more SEZs. Land acquisition for the zones has been completed.
Uppal also plans to expand its hospitality and retail business by building five more hotels and three malls in Delhi and its suburbs

Source : LiveMint

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DLF Ltd has announced that DLF Hotels, the hospitality arm of the Company, on August 30, 2007 announced that it has reached an agreement with Four Seasons Hotels and Resorts to operate a proposed luxury hotel at DLF Golf Links, in Gurgaon.

Targeted to open by end 2010, Four Seasons Hotel Gurgaon will be located at the DLF Golf & Country Club in DLF City, Gurgaon. The 230 room Hotel will overlook the picturesque 18 - hole, Arnold Palmer Signature Golf Course, and will feature several dining options, a full feature spa, as well as facilities for meetings and functions.

This move further strengthens the DLF Hotels portfolio and the vision of developing, acquiring, financing and actively managing quality hotels. The company is well poised to achieve its target to build and "own" India's largest hotel assets with over 25,000 - 30,000 guest rooms in next 7 - 10 years. In November 2006, DLF Hotels had announced its first JV with The Hilton Hotels to develop 60 - 75 business hotels throughout India.

The Company is the largest real estate development Company in India in terms of area of completed residential and commercial development (Source AC Neilsen Report. The Group's existing range of business verticals span across the Homes, Offices, Shopping Malls, SEZs, Hotels and Infrastructure, which contributes towards ‘Building India’. DLF has projects with lettable or saleable area of approximately 44 million square feet under construction and Land Reserves across 31 cities.

Four Seasons is dedicated to perfecting the travel experience through continuous innovation and the highest standards of hospitality. Founded in 1960, Four Seasons has followed a targeted course of expansion, opening hotels in major city centres and desirable resort destinations around the world. Currently with 74 hotels in 31 countries, and more than 25 properties under development, Four Seasons continues to lead the hospitality industry with innovative enhancements, making business travel easier and leisure travel more rewarding.

Source: Equity Bulls