Indian real estate developer Sobha Group has acquired a plot of land on a major arterial road in Dubai to build the first of its planned five star hotels.
The group has acquired the land on Sheikh Zayed Road to build the first hotel of its proposed Sobha Hotel chain, a company statement said.
Sheikh Zayed Road is the landmark business address in Dubai, so what better place for us to mark our entry into the hotel development and operations arena? said Ajay Rajendran, Sobha Group vice-chairman, in the statement.
More : economictimes.indiatimes.com
DLF to spend 15% revenue on increasing landbank
Indias largest real estate developer DLF intends to spend 15% of its revenue on an ongoing basis to purchase additional land. DLF has carved out a land replenishment fund, wherein 15% of the sale value of its real estate development is credited.
DLF CFO Ramesh Sanka says the companys land replenishment fund will not be a fund in a conventional sense. As a matter of discipline, we will credit 15% of the sales towards land purchases on an ongoing basis, so that we have at any point of time enough cash for a good opportunity. He says DLF is not desperate for new land purchases, but should be ready to bid for attractive projects, as and when they come up. Incidentally, the company claims it has enough land bank to last for ten years.
DLF increased its land bank from 574 million sqft to 751 million sqft in 2007-08. The company fully owns 92% of its current land bank while, the rest is held in joint ventures with others. According to the company, 85% of its land resource is located in top seven cities. DLF is putting in place a geographical information system to keep track of its huge land bank. The new system is intended to keep track of acquired lands as well as prospective lands for acquisition.
More : economictimes.indiatimes.com
Gammon India to consolidate realty arm, then opt for listing
Construction firm Gammon India Ltd, which ventured into infrastructure through its subsidiary Gammon Infrastructure Projects Ltd, or GIPL, has decided to consolidate all its real estate projects under Gammon Realty, which it plans to list on the bourses.
Though Gammon Realty was floated two years ago, it has announced only one venture in Bhopal, Madhya Pradesh—a Rs800 crore mixed-use project that would host a five-star hotel, and residential and office space.
There are a few real estate projects which were being executed under different group companies of Gammon India such as GIPL that would now be brought under Gammon Realty, said a senior Gammon India executive who declined being named as he is not authorized to speak with the media.
More : livemint.com
IIM-L likely to teach LDA staff real estate management
To learn better, make effective use of its real estate assets and ensure quality development of its housing schemes, the officials of the Lucknow Development Authority (LDA) plan to take lessons on real estate from experts of the Indian Institute of Management-Lucknow (IIM-L).
LDA Vice-Chairman Mukesh Kumar Mesharam has already initiated talks with IIM-L in this regard. “Help of other institutions will be taken if the arrangement does not work out with IIM-L,” an LDA official said.
According to the LDA vice-chairman, the training will go a long way in changing the mindset of the employees. “It will help not only to boost the image and reputation of the LDA but also improve the quality of its work,” Meshram said.
More : expressindia.com
Real estate and construction—confusion and turmoil prevail
As India continues its scorching pace of economic growth, many sectors that were not historically favoured by the government are gaining prominence. One such sector is real estate, which has a large employment generation potential and is a significant source of tax revenue. Additionally, this sector has attracted a large amount of foreign investment in recent times. Therefore, the government would do well to address the many complexities and ambiguities—on the indirect tax front—that the sector is facing.
Historically, the key indirect taxes that applied on the construction and real estate sector were works contract tax (now VAT) and stamp duty. With the expanding service tax net, various construction activities have been brought within the service tax net, notable among them being construction of commercial and residential complexes and renting of immovable property. The latest addition to this list was service tax on works contract, which was introduced in the last budget.
However, the amount of works contract tax payable, under both service tax and VAT, is anything but clear. The Supreme Court, in K Raheja development corporations case in 2006, held that if a developer enters into a contract for sale of a residential apartment before construction is completed, it would be a works contract.
More : economictimes.indiatimes.com
Japanese logistics firms eye retail, SEZ biz in India
A host of Japanese logistics support firms, including K Line, NYK Line, Kawasaki Kisen, Kaisa, Mitsui OSK Line Ltd and Kintetsu are planning an entry into the Indian market to set up logistics support services centres. This is to provide logistics related services to the retail sector and special economic zones (SEZs) in India in Maharashtra, Madhya Pradesh, Gujarat, Goa, Chattisgarh, Chennai, Haldia, West Bengal, Tuticorin and Karnataka, according to industry experts.
Meanwhile, other local companies are all making a beeline to develop free trade economic zones (FTWZs) with a possible logistics support services set up as well. They include, Modern India, Arshiya International, Balaji Infra Project, Fab City SPV, Chennai-based Jafza Business Park and Chiplun Infrastructures Private Ltd.
SEZs are seen as a high growth segment in India, having attracted a lot of interest among corporates, with 513 formal approvals, of which notifications have been issued for 250 SEZs. The retail segment is booming too, and the industry, estimated to be $364 bn in size, is growing at the rate of 50% per annum.
More : financialexpress.com
Investors can scale operations with Unitech and DLF
This week, we take a look at the two real estate biggies — DLF and Unitech. Investors who want to take advantage of growth in the domestic real estate sector can draw strength from DLFs impeccable delivery record and scale of operations, while the bravehearts can go for Unitech.
DLF
Aprominent player in the National Capital Region (NCR), DLF is the largest listed realty company in India. Besides being present in homes, offices and shopping mall segments, it has added hotels, infrastructure and special economic zones (SEZs) divisions to its portfolio.
BUSINESS: With land reserves of over 16,000 acres spread across 32 cities, the company has delivered 224 million sq feet of completed development since 1949. While residential projects contribute around 65% to its revenue, retail and commercial projects account for the remaining 35%.
More : economictimes.indiatimes.com
NRIs investing in property in India
At a time when the US and European economies are spiralling downwards, the domestic economy in general is looking up, despite the current slowdown . Not surprisingly, the NRIs are investing in various sectors, including real estate. Several real estate projects across India have garnered approximately 10-20 percent participation from NRIs.
The return on investment provided by real estate here has been found to be more attractive than that offered by developed nations. Also, the simplified process of investments has reversed the equation and many NRIs have been consistently investing in properties .
Source : economictimes.indiatimes.com
Ansal to develop SEZs at Noida, Haryana and Rajasthan
Real Estate major Ansal Properties and Infrastructure Ltd today said it plans to set up special economic zones in Greater Noida, Haryana and Rajasthan.
We are set to set up SEZs at Greater Noida, Haryana and Rajasthan and are organising a roadshow in the holy city of Varanasi to let the people know about our plans at their native places, Ansal API Vice-Chairman and Managing Director Pranav Ansal said in a statement here.
The company is developing a 2,000-acre township, besides an IT SEZ in Lucknow.
The company has also launched a 2500-acre township near Greater Noida. Besides, it has launched residential and commercial projects in Agra, Meerut, Lucknow, Greater Noida and Ghaziabad.
It had last month announced plans to invest Rs 900 crore in a 250-acre engineering SEZ at Sonepat, Haryana.
Source : outlookindia.com
TCI to foray into real estate sector
Transport Corporation of India, so far engaged in movement of cargo over land and sea, is planning to venture into the real estate sector with pan-India presence.
We plan to get into the real estate sector as we have land bank all over the country, TCI Executive Director Vineet Agarwal told PTI.
The company has 200 properties and would develop a number of them for residential and commercial projects.
More : economictimes.indiatimes.com
:: Next Page >>