Blog

Indian real estate companies set to face problems due to new accounting standards: Ernst & Young

Indian real estate companies set to face problems due to new accounting standards: Ernst & Young

September 8, 2016 in Uncategorized

MUMBAI: Indian real estate companies are experiencing initial glitches as they move to the new accounting standards- Ind-AS—based on the global IFRS, an EY research report said Thursday. 
Real estate companies with a networth of more than 250 crores, will move to Ind AS in a phased approach by 2018. 
A transition to Ind AS is expected to have a significant impact on real estate entities in areas across revenue, consolidation and financial instruments, the report-- Gaining perspective: Ind AS considerations for Indian real estate companies—said. "Multiple sectors, including real estate will need to address certain challenges stemming from the adoption of the new accounting standard under the Ind-AS framework. Apart from certain aspects relating to GAAP differences, financial instrument and consolidation standards are likely to pose higher challenges for real estate companies. In many instances, companies may have to renegotiate the structuredfinancing arrangements," said Jigar Parikh, Partner in an Indian member firm of EY Global. 
Industry experts say that the new accounting standards could also impact the real estate companies' plans to raise funds. "Also, substance based definition of control is likely to impact transactions with respect to land acquisition, REITs and joint development arrangements. However, the application of Ind AS principles will better reflect substance of the transactions and enhance investor confidence in the financial performance and position of the real estate companies," said Parikh. 
(Source by:The Economic Times)
   

DLF could look at tweaking residential business model post notification of RERA rules

DLF could look at tweaking residential business model post notification of RERA rules

August 31, 2016 in Real Estate News

NEW DELHI: Real estate firm DLF is waiting for the final rules under the real estate regulatory act to be notified to see how it can tweak its business model going forward, said Saurabh Chawla, senior executive director (finance) at DLF during a call with analysts. "We will have to see if we should run our residential business like our commercial business where we construct before we sell," he said. "We will have to take an educated call once the rules are notified." The company has been trying over the last few years to reduce its debt. It's biggest attempt to reduce debt is the sale of its promoters' 40% shareholding in the company's rental arm DLF Cyber City Developers Limited, which is expected to fetch them close to Rs 13,000 crore. The promoters intend to put back this money into the company to help reduce debt. Chawla said the company has shortlisted potential investors to sell the stake and the deal is expected to be signed in October. He said DLF had received multiple bids from sovereign funds as well as some global private equity firms and they have shortlisted a few of them. "The investors are doing their due diligence at the moment and it is expected to complete next month," he said. ET had reported earlier that DLF has shortlisted six potential buyers for the sale, which involves 26.8 million sq ft of rented office assets with a rental income of over Rs 2,200 crore. The shortlisted parties include GIC, BlacksBlackstone, Warburg Pincus, Brookfield Asset Management, a consortium of Abu Dhabi Investment Authority (ADIA), Kotak Realty Fund and Qatar Investment Authority (QIA) and another fund, whose name could not be ascertained. Chawla said post the due diligence, the company would sign binding agreements with these investors and then negotiate with them. "By end September or early October, we should be able to guide the market about the culmination of this transaction," he said. On the residential side of the business, sales remained muted for the company in the June quarter. "This scenario is likely to remain the same for the next few quarters," said Ashok Tyagi, chief financial officer for DLF. DLF's net debt went up by Rs 285 crore during the June quarter Rs 22,487 crore. On Monday, it had reported an 82.12% increase in its consolidated net profit at Rs 283.04 crore for the quarter ended June 2016 compared to a net profit of Rs 155.41 crore a year ago on the back of one time income from the sale of its cinema exhibition business DT Cinemas. Tyagi said the company will achieve its guidance of Rs 3000-3,500 crore for gross sales bookings in the fiscal despite the slow market. (source by:-The Economic Times )

DELHI NCR M3M Group launches ‘M3M Urbana Premium’

DELHI NCR M3M Group launches ‘M3M Urbana Premium’

August 24, 2016 in Real Estate News

M3M, India’s fastest growing Real Estate Group, launched its ‘M3M Urbana Premium’ project, developed on area earmarked from the land ad-measuring 6.88 hectares (17 Acres) comprising of commercial complex M3M Urbana, M3M Urbana Business Park and M3M Urbana Premium and shall be integralpart ofthe commercial complex, located at Sector-67, Golf Course Extension Road (or Southern Periphery Road SPR) with close proximity to National Highway-8, Rajiv Chowk and IGI Airport.The project is surrounded by a high net-worth residential settlement which will provide a buoyant sustainability and is considered to be the investment hotspot in Gurgaon, Haryana, providing an opportunity to generously explore the untapped potential of Millennium City.Talking about M3M Urbana Premium, Pankaj Bansal, Director, M3M Group said that the name of the project in itself is indicative of the exquisiteness of the project. M3M Urbana Premium will become the most iconic commercial destination for the residents of Gurgaon. The accessibility factor would make it the most sought after location, owning medley of commercial space genre such as state of the art 7 Screen Multiplex, High-street Retail Spaces,Anchor Stores, Fine Dine Restaurants, the Project  is sure to be a crowd puller and would have huge footfalls.  The par-excellence structure of the project is likely to attract and apposite to the leading national and international brands. Premium brands will be competing to find a space here.He further added that M3M Urbana Premium offers uber Office Spaces for next-gen entrepreneurs in a modern high street retail complex.M3M Urbana Premium has several high-class facilities, including Video Surveillance in Basement Driveways, External Peripheryand Ground Floor lobbies, and Boom barriers at entry and exit points. Besides exterior and lobby finished with a combination of stone and painted surface, M3M Urbana Premium has provisions for wet points in all the units, arcade along all retail units, round-the-clock power back-up, provision for cable TV and fixed Line and latest fire detection and suppression technologies.It is surrounded by fast evolving affluent residential neighbourhood like M3M Golf Estate, M3M Merlin, IREO Victory Valley, and Park View Spa Next. With close accessibility to South Delhi, NH – 8 and International Airport, it isdestined to be India’s most sought after investment destination.The price of M3M Urbana Premium ranges between Rs 13,500- 25,000/-(per square feet), with sizes of 350-1750 square feet. It includes amenitiessuch as car parking, firefighting systems, intercom, lifts and round-the-clock power backup.

(source by:-Realty Fact )  

Realtyfact.com to host ‘Online Verified Property Expo 2016’

Realtyfact.com to host ‘Online Verified Property Expo 2016’

August 23, 2016 in Real Estate News

M3M Group launches ‘M3M Urbana Premium’

M3M Group launches ‘M3M Urbana Premium’

August 22, 2016 in Real Estate News

M3M,India’s fastest growing Real Estate Group, launched its ‘M3M Urbana Premium’ project, developed on area earmarked from the land ad-measuring 6.88 hectares (17 Acres) comprising of commercial complex M3M Urbana, M3M Urbana Business Park and M3M Urbana Premium and shall be integralpart ofthe commercial complex, located at Sector-67, Golf Course Extension Road (or Southern Periphery Road SPR) with close proximity to National Highway-8, Rajiv Chowk and IGI Airport.The project is surrounded by a high net-worth residential settlement which will provide a buoyant sustainability and is considered to be the investment hotspot in Gurgaon, Haryana, providing an opportunity to generously explore the untapped potential of Millennium City.Talking about M3M Urbana Premium, Pankaj Bansal, Director, M3M Group said that the name of the project in itself is indicative of the exquisiteness of the project. M3M Urbana Premium will become the most iconic commercial destination for the residents of Gurgaon. The accessibility factor would make it the most sought after location, owning medley of commercial space genre such as state of the art 7 Screen Multiplex, High-street Retail Spaces,Anchor Stores, Fine Dine Restaurants, the Project is sure to be a crowd puller and would have huge footfalls. The par-excellence structure of the project is likely to attract and apposite to the leading national and international brands. Premium brands will be competing to find a space here.He further added that M3M Urbana Premium offers uber Office Spaces for next-gen entrepreneurs in a modern high street retail complex.M3M Urbana Premium has several high-class facilities, including Video Surveillance in Basement Driveways, External Peripheryand Ground Floor lobbies, and Boom barriers at entry and exit points. Besides exterior and lobby finished with a combination of stone and painted surface, M3M Urbana Premium has provisions for wet points in all the units, arcade along all retail units, round-the-clock power back-up, provision for cable TV and fixed Line and latest fire detection and suppression technologies.It is surrounded by fast evolving affluent residential neighbourhood like M3M Golf Estate, M3M Merlin, IREO Victory Valley, and Park View Spa Next. With close accessibility to South Delhi, NH – 8 and International Airport, it isdestined to be India’s most sought after investment destination.The price of M3M Urbana Premium ranges between Rs 13,500- 25,000/-(per square feet), with sizes of 350-1750 square feet. It includes amenitiessuch as car parking, firefighting systems, intercom, lifts and round-the-clock power backup. (source by:-Realty Fact )

Cabinet approves redevelopment of 7 housing colonies in Delhi

Cabinet approves redevelopment of 7 housing colonies in Delhi

August 6, 2016 in Real Estate News

To ease the problem of shortage of government accomodation in the national capital, government on Tuesday decided to rebuild seven housing colonies to double the existing housing units from 12,970 units to 25,667 at a total cost of Rs 32,835 crores.The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the redevelopment of seven General Pool Residential Accommodation (GPRA) colonies in Sarojini Nagar, Netaji Nagar, Nauroji Nagar through National Buildings Construction Corporation Limited (NBCC) and in Kasturba Nagar, Thyagraj Nagar, Srinivaspuri and Mohammadpur through Central Public Works Department (CPWD) to replace the existing housing stock.“In Delhi, there has been a frequent complaint of shortage of government accomodation for employees. The Cabinet decided to rebuilding general pool accomodation at seven places.“There will be a total expenditure of Rs 32,835 crore which we are investing in dwelling units. After reconstruction, renovation and fresh construction, they could be increased from the present 12,970 to 25,667 dwelling units. This will help government employees who have to wait for long years to get government accomodation,” Union Minister Ravi Shankar Prasad told a press conference.

The plan is to rebuild existing units of Type I to IV with a build-up area of around 7.49 lakh sqm with Type II to VI units with built-up area of around 29.18 lakh sqm with supporting social infrastructure facilities.

The project will also develop government office accommodation for nearly 2.42 lakh sqm at Netaji Nagar.

The total estimated project cost of Rs 32,835 crores includes maintenance and operation costs for 30 years and will be completed in five years in a phased manner.

It will be implemented on self-financing basis by sale of commercial built-up area in Nauroji Nagar and parts of Sarojini Nagar, adjoining the Ring Road, a government statement said.

The move will help bridge the gap in shortage of government accommodation in the national capital region, which leads to long wait for employees to be eligible for housing.

The Union Ministry of Urban Development moved the proposal for redevelopment of existing old dilapidated housing colonies to augment the housing stock by making optimum utilization of land resources as per Master Plan Delhi (MPD) – 2021 and using modern construction technology withgreen building norms and in-house solid/liquid waste management facilities.

DLF’s rental arm stake sale by Sep, may fetch Rs 12,000 crore

DLF’s rental arm stake sale by Sep, may fetch Rs 12,000 crore

August 5, 2016 in RealtyFact Staff

Realty major DLF’s promoters are likely to sell 40 per cent stake in its rental arm by September, a deal estimated to fetch around Rs 12,000 crore.According to sources, three global institutional investors — Blackstone, GIC and Abu Dhabi Investment Authority — have been shortlisted as buyers in DLF Cyber City Developers Ltd (DCCDL). Due diligence process is on and the agreement is likely to be signed by September.DLF’s billionaire promoter KP Singh and his family will reinvest a significant part of the amount realised from the sale into DLF Ltd.The realty major in October had announced that its promoters will sell 40 per cent stake in DCCDL, which holds the bulk of office and retail complexes. DLF would, however, continue to own the remaining 60 per cent stake in DCCDL.In April, DLF’s bankers had circulated the information memorandum to 18-20 global institutional investors that are keen to purchase this stake.As per the memorandum, DCCDL has about 25-26 million sq ft of leased commercial space with an annual rental income of about Rs 2,250 crore. DCCDL also has 20 million sq ft of future development potential.Of the DLF’s total net debt of Rs 22,202 crore, DCCDL’s share was at Rs 12,325 crore in the last fiscal.“With this proposed transaction, DLF will be able to achieve three of its main objectives — removal of conflict of interest, creation of a rental platform with large financial investors and reducing substantial portion of debt,” DLF’s Senior Executive Director, Finance, Saurabh Chawla had said in October.While announcing the annual result in May, DLF had said the intent of the transaction is to create a platform in partnership with long term institutional investors to own and develop commercial assets.“Grow the commercial business, organically and inorganically, and target high equity returns for the shareholders; it shall be a precursor to setting up of REITs (Real Estate Investment Trust) in the medium term,” DLF had said in a presentation.The deal will be an important step to “create two pure plays – residential business with zero debt and an independent commercial business”.Singapore’s sovereign wealth fund GIC had invested Rs 1,992 crore last year to acquire 50 per cent stake in two of DLF’s new projects in Delhi.Recently, DLF restructured its joint venture with Blackstone-managed Ridgewood Holdings that had invested Rs 1,481 crore in seven housing projects in 2007.The partners had divided five undeveloped land parcels of about 500 acres in Bengaluru and Chennai.DLF has a land bank of 281 million sq ft, of which 37 million sq ft is under construction. The company had posted a net profit of Rs 549.39 crore over a turnover of Rs 9,259.86 crore in the last fiscal.

(source by:-Realty Fact )

Real Estate growth pegged at 180 billion dollars by 2020

Real Estate growth pegged at 180 billion dollars by 2020

August 4, 2016 in RealtyFact Staff

CII holds 12th edition of Realty 2016 at New Delhi, on regulation and Finance: Paving the way for sustainable real estate development in India ‘Paving the way for sustainable real estate development in India’ formed the theme of deliberations of the 12th annual conference on the real estate sector organised by Confederation of Indian Industry (CII) at New Delhi, today. An esteemed panel of experts spoke on the perspective on future of Indian real estate for the next five years.The chief guest on the occasion, Pinaki Mishra, Member of Parliament and Chairman of Parliamentary Standing Committee on Urban Development said, “The Parliamentary Standing Committee on Urban Development would invite CII in future deliberations of the committee. This is vital as vigorous hand holding by the Centre Government is crucial to help the real estate sector on the growth path.” He emphasised that the government and the private sector must work in tandem towards further development and growth of the vital sector of the economy.CII Chairperson RumjhumChaterjee said, “Real Estate Regulatory and Development Act 2016 will create the much-needed institutional framework to bring back the confidence among investors.” She said, “Smart City projects announced for 100 cities by the government will also give a big fillip to the real estate sector. Besides Smart Cities, increased inflow of investments under ‘Make in India’ from all over the globe will lead to positive development for the real estate sector. Raising the cap of Real Estate Investment Trusts (REITs) assets from 10% to 20% by SEBI recently will lead to increase in investor confidence in realty sector which is becoming more and more professional.”While addressing the conference, Anshuman Magazine,Chairman, CBRE– India and South East Asia said, “India is one of the fastest growing large economies of the globe. A balanced regulatory framework and healthy financing environment are the two key pillars for the sustainable development of the Indian real estate sector. Recently announced policy amendments, including those on RERA and REITs, will aid the growth of the sector, going forward. The Government is working with industry stakeholders to address development bottlenecks and help bring confidence back into the real estate market in India.”Getambar Anand, Chairman and Managing Director, ATS said, “Development of the real estate sector cannot happen without the private sector. Documented demand for housing proves that the real estate sector is doing much better now. The government must ensure that over regulation does not discourage investment flow into the sector.”SriramKalyanaraman, Managing Director and CEO, National Housing Board, said, “The real estate sector is set to become a 18billion dollar industry by 2020. Home loan disbursements from NHB have been encouraging. Demand for Warehousing space will grow to 35% whenever the GST Bill is implemented. On the basis of the Smart City projects, land record digitisation, withdrawal of corporate tax from REIT structure, the Real estate sector growth is bound to attract funds and confidence of the investors as well in a big way.”Participants took active part in the various sessions organised during the day on Improving India’s Real Estate Regulatory Environment – Impact of RERA and Recommendations for Improvement’, India’s Urban Development Bottlenecks: Issues to be addressed’, RFITs –Next wave of Financing for real estate’ and ‘Challenges in the RE Financing Environment later in the day. (source by:-Realty Fact )  

DLF, Blackstone restructure shareholding in five land parcels

DLF, Blackstone restructure shareholding in five land parcels

August 3, 2016 in Real Estate News

Realty major DLF on Wednesday announced restructuring of its joint venture with global investment firm Blackstone-managed Ridgewood Holdings that had invested Rs 1,481 crore in seven housing projects in 2007.In 2007, DLF had diluted 49 per cent stake in seven residential projects located in Chennai, Bengaluru, Kochi and Indore to a Merrill Lynch & Co entity Ridgewood Holdings, now managed by Blackstone.As part of the restructuring, DLF and Ridgewood Holdings have divided five undeveloped land parcels of about 500 acres in Bengaluru and Chennai. Two projects in Kochi and Indore have already been developed by the partners.DLF, the country’s largest realty firm, would now have 100 per cent stake in two land parcels in Chennai while Ridgewood Holdings would have full ownership of two land parcels in Bengaluru and one in Chennai.In a filing to BSE, DLF said the company and Ridgewood Holdings have decided to “realign the current shareholding arrangement in the JV companies in order to maintain continued focus of future development of various projects”.When contacted, DLF Executive Director (Finance) Saurabh Chawla said: “The realignment of shareholding is in line with DLF’s strategy to focus on certain micro-markets and specific price segment, considering the market conditions.”He said the change in the shareholdings in the five future projects would be “cash-neutral”.“The realignment is only for future projects, which is yet to be launched. There is no change in the existing projects,” Chawla said.Meanwhile, DLF is negotiating with potential investors to sell promoters’ 40 per cent stake in its rental arm DLF Cyber City Developers Ltd (DCCDL) for an estimated Rs 12,000-14,000 crore.Promoters would infuse the amount raised through this proposed deal into the DLF.DLF in October last announced that its promoters will sell their 40 per cent stake in DCCDL. DLF owns remaining 60 per cent stake in DCCDL, which holds the bulk of its office and retail complexes.The deal will be an important step to “create two pure plays – residential business with zero debt and an independent commercial business”, DLF had said in an analyst presentation in May.DLF’s net profit rose marginally to Rs 549.39 crore in 2015-16, from Rs 540.24 crore in the previous year.Income from operations rose 21 per cent to Rs 9,259.86 crore. Its net debt stood at Rs 22,202 crore at the end of the last fiscal.The company’s share price was up 2.43 per cent at Rs 155.80 on BSE in afternoon trade. (source by:-Realty Fact )  

Extra realty space on Metro routes in Gurgaon gets nod

Extra realty space on Metro routes in Gurgaon gets nod

August 2, 2016 in RealtyFact Staff

The district planning committee on Monday approved a long-pending transit oriented development (TOD) policy. With this, the administrators hope to resolve one of Gurgaon’s biggest problems – traffic snarls – by increasing floor area ratio (FAR) along transit corridors. The move is also likely to boost the sluggish real estate market and raise much-needed funds for the development of Gurgaon’s mass transit system (MTS).The policy was originally announced in 2014. It was approved by the district planning committee by incorporating all feedback and suggestions from various stakeholders. Once norms are finalised, the TOD policy will be applicable to projects along important roads like Golf Course Road, MG Road, Southern Peripheral Road and Dwarka expressway. Metro rail routes already exist along some of these. The policy revolves around developing MTS like Metro and high density urbanisation, along these corridors.Deputy commissioner T L Satyaprakash said the TOD policy will help resolve Gurgaon’s traffic problems, while increasing use of MTS. “It will also help raise funds, which will be used to develop the MTS,” said Satyaprakash.“TOD zones will extend till 800m on either side of the earmarked transit network. Up to 500m will be kept inside the ‘intense TOD zone’, with the area between 500-800m to be called ‘transition TOD zone’,” said district town planner Mohan Singh. He said norms will be applicable on all new licences to be issued. Even older, completed projects can avail benefit of increased FAR, so long as they conform to norms.Assistant town planner R S Batth said, “As per policy, area under ‘intense TOD zone’ is extended up to 500m from the transit network, and will get a FAR of 3.5, while areas under ‘transition TOD zone’ (between 500-800m) will get a FAR of 2.5.” Both areas had a FAR of 1.75 earlier.DTCP planning officer Jaibir Sharma said increased FAR will allow for the creation of more housing units and office space. “It is likely to make housing and office space more affordable,” said Sharma, adding that developers have a windfall to reap by creating more built-up space and soaking up incremental benefits.He said the main objective of the policy is to minimise travel time for citizens and ensure they can live close to their workplace. “Our plan is to encourage mixed land use to ensure people can walk to work,” said Sharma. (source by:-Realty Fact )

© Copyright 2017
CS LandTraders India Pvt. Ltd Design by Hostcrux

Quick Contact

Your Name (required)

Your Mobile (required)

Your Email (required)

Your Message


Hot Deals

>> <
  • 68 avenue
  • Baani Center Point
  • JMS Crosswalk

Micro Sites