- Real Estate
Real Estate Round Up - August 15 to August 19, 2011
The options include but are not limited to appealing against the CCI order at the Competition Appellate Tribunal. The Company continues to believe that it has a strong case, DLF said.
DLF exploring all options on CCI order
DLF Ltd. said that it has received an order from the Competition Commission of India (CCI) in connection with a complaint filed by Belaire Owner's Association. Further, the Company said that it is perusing the CCI order and will examine all options in consultation with legal experts. The options include but are not limited to appealing against the CCI order at the Competition Appellate Tribunal. The Company continues to believe that it has a strong case, DLF said.
CBI raids Emaar MGF office in Hyderabad: report
Central Bureau of Investigation has raided Emaar MGF office in Hyderabad, according to a report. The report stated that CBI files FIR against Emaar Properties Dubai and Emaar MGF. The reports stated that the raids were were conducted in seven cities including Hyderabad and Bengaluru.
In Focus Stories
Over 60% of Indian software exports are to the US: JLL
Over 60% of Indian software exports are to the US, and nearly 20% are to Europe. Since both these geographies are affected, there will eventually be an impact on Indian IT companies. The dollar’s depreciating against the rupee will make Indian software exports to the US less favourable.
This will impact the growth of the IT sector, which contributes 50% of the office space demand in India. We are looking at a potential reduction in the expected levels of demand for IT-centric office spaces by next year. In the current year, we will not see a significant reduction in demand since it will continue to be driven by existing contracts.
On the brighter side, the lowering of crude oil prices could have a softening effect on inflation, which will in turn help home buyers. Also factoring in possible discounts during the upcoming festive seasons, there may be a discernible uptick in residential sales as against the previous estimates.
That said, it is eminently clear that the Indian commercial real estate sector needs to diversify its focus, which is predominantly IT-centric at the present time. The market must start catering to other segments of office space.
Overleveraged developers are doubtlessly in for a rougher ride now. Many of them may be prevailed upon to bail themselves by focusing on liquidating their existing projects and reducing their debt positions. Since liquidity is expensive on all fronts, this seems to be the only viable option for them. Many of the larger developers are already in the process of liquidating their land holdings and projects across cities.
There may be many attempts at restructuring of debt, though it remains to be seen how successful these will be. We will also see an increase in mergers and acquisitions between overleveraged and more stable developers.
Projects which are at reasonable levels of execution will still be able to reach completion stages and give possession to tenants, because their capital requirements are lower. However, projects in the initial stages have larger capital requirements and may face delays.
Anuj Puri, Chairman & Country Head, Jones Lang LaSalle India
DLF to sell Gurgaon plot for Rs 3bn to pare debt
DLF Ltd is planning to sell 13-acre plot in Gurgaon, Haryana, to ease its debt burden through asset sales, according to a report. The report stated that about 1 million sq ft of commercial space can be built on the plot, which is expected to fetch Rs 3bn for the realty firm. The real estate developer is asking for a price of Rs 2,800-3,000 per sq ft, says report. The report also stated that the land is close to the southern peripheral road in Gurgaon
Emami to merge realty arm with Zandu Realty
DLF shares fall on CCI penalty
GHMC hikes property tax by 5%
Indiabulls Real Estate hits new low
BofA may sell Merrill Lynch property for US$1bn
Bank of America Corp is in talks to sell real estate investments held by its Merrill Lynch unit to Blackstone Group LP for as much as $1 bn, according to a report. The report stated that the assets include properties in Europe, the U.S. and South America. Bank of America in July 2010 hired Blackstone to manage Merrill’s Asian real estate investments, says report.
U.S. housing starts fall 1.5% in July
US Housing starts slipped 1.5% in July, according to a report. The report stated that starts fell to a seasonally adjusted annual rate of 604,000 from a downwardly revised 613,000 rate in June. Single-family starts slipped 4.9% to 425,000 from a downwardly revised 447,000, says report.
Evonik Industries plans to sell stake in real-estate business: report
Allied Properties REIT Q1 FFO declined to C$14.68 mn
China July home Prices fell in 14 Cities
India Infoline Research Team / 08:44, Jun 26, 2015
IIFL is hosting 10 companies at a Management Roadshow in Mumbai today. The opening is a subdued start. US market saw minor losses with Dow, S&P 500 and Nasdaq closing marginally lower.