JANUARY 2011 Real Estate Newsletter

Editorial

Contents Dear Reader, Industry News ...... 2 The spotlight has moved from the Euro Zone to the Arab Private Equity News ...... 7 countries where a massive pro-democracy wave is Public Markets ...... 9 threatening to topple Governments. The unrest in the Land Deals ...... 10 Middle East and Africa has sparked a surge in oil prices

Technology Parks/SEZs ...... 13 which are hovering at the $100 per barrel level. According to analysts, global emerging markets have underperformed Hospitality ...... 15 developed markets by 10% over the last few months due to Commercial Properties ...... 18 inflationary pressures and the resultant tightening monetary Residential...... 19 policy.

About Avendus Capital ...... 23 The oil crises coupled with food shortage and rising CONTACT DETAILS ...... 23 commodity prices will ensure that high inflation persists in in the near term. For Indian Real Estate companies, the business environment is getting tough. Bank lending to the sector has been hit with the ongoing scams and investigations. High home loan rates has decreased affordability and dampened sales. Choppy markets have put IPO plans on hold.

With the budget round the corner, one hopes the Government will address the need for more governance and regularization in the Indian Real Estate Sector, in a bid to make it a cleaner, more transparent and attractive market place.

Happy Reading! Disclaimer: Avendus Real Estate Team The news contained herein has been taken from published sources as indicated under each item. Avendus will not be held liable for any erroneous data as published in the source indicated. Avendus also does not take any responsibility for any errors or omissions or results of any actions based upon this information.

Industry News supported by the growing IT, BPO and automobile sectors, are expected to remain RISING LOAN RATES TO COOL REALTY strong in 2011. Markets which have witnessed PRICES strong recovery with capital values reaching high The Economic Times prices points and significant supply — Gurgaon, Mumbai and — are likely to see some Property prices are likely to come down in 2011 correction in coming year,” Ms Shveta Jain, making it more affordable to own a house, as Director, Residential Services, Cushman & rising cost of home loans will temper demand Wakefield India, said. Cushman & Wakefield did and check the sharp bounce back of price after not reveal the quantum of correction it expects the slowdown in 2008-09, say real estate for Gurgaon and Mumbai markets. consultants. Housing demand had increased last year after economic revival boosted consumer REAL ESTATE PLAYERS IN GUJARAT confidence and banks introduced teaser rates TAKE ON NATIONAL BRANDS with lower interest cost for borrowings. Sensing The Economic Times better demand, builders had increased prices between 20 percent and 35 percent across the Local builders are turning out to be quick country. This will moderate after banks pulled learners. After national players like Godrej and the plug out of such attractive borrowing Adani floated township projects by forging tie- schemes and raised interest rates by about 50 ups with local players, a couple of Ahmadabad- basis points over the past one month. based builders have come together to take on the competition from bigger firms. The correction process has already begun in overpriced locations of Mumbai, the same Two Ahmadabad-based developers - Savvy dynamics will be seen in all cities that have had Infrastructure and Shree Siddhi Infrabuildcon - irrational price escalation," he said. have pooled-in their resources and expertise in constructing a township with 18 lakh square feet GURGAON, MUMBAI HOUSING constructed area with an investment of over MARKETS MAY SEE CORRECTION IN 1,300 crores. The duo will be 50:50 partners in 2011: C&W this venture that is coming up on the city The Hindu Business Line outskirts.

After an all-round recovery in 2010, the housing IN FULL THROTTLE MODE market could see some correction in values next The Times of India year in locations such as Gurgaon and parts of Mumbai as new supply enters the market, says With the Reserve Bank of India (RBI) reportedly Cushman and Wakefield. However, Southern in no mood to roll over loans disbursed to cities including and seem various developers by banks, a few of them are poised for appreciation in capital value in 2011. likely to feel the heat by the end of this fiscal year. Earlier, banks had rescheduled these “Southern cities like Bangalore, Chennai and loans as developers cited recession for non- , which are largely driven by ‘end payment during the 2009-10 period. However, user' demand (or non-speculative demand) following the current loan-for-bribe scam, the

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RBI or the banks have tightened the screws on due to come up over the next six months from disbursement of further loans. fund houses such as Aditya Birla Real Estate Fund, HDFC Mutual Fund, ICICI Prudential In Mumbai, 50 percent of developers have a Asset Management, JM Financial and the Knight joint venture with landowners. These developers Frank-Anand Rathi. Private equity fund Indiareit have no reason to worry, but it’s the ones who Fund Advisors also plans to enter this segment. have purchased the land who will be under pressure to liquidate stock so that banks do not Commercial rentals have been steadily growing classify them under non-performing assets by almost a tenth due to rising demand. "Over a (NPAs).” Gautam Thacker, Vice-President, two to three-year time-frame, demand will Marketing and Finance, Vijay Group, says, exceed supply and such properties will give “Indeed, some leading developers have taken good returns," said Amber Maheshwari, director- loans which currently stand due for repayment. investments, DTZ, a real estate advisory firm. Besides this, the RBI has cautioned banks against lending to non-performing assets PRICE RISES, LOAN HIKES TO DAMPEN (NPAs), however, this is not applicable for the HOUSING DEMAND regular developers.” Financial Chronicle

HFC LOANS: NO PRE-PAYMENT Housing demand is likely to slow down due to CHARGES higher prices and increased home loan rates this The Times of India year, rating agency Fitch said. The higher prices combined with the increase in interest rates on A circular issued recently by the National mortgages in 2011 is likely to slow down growth Housing Bank, which regulates home finance in the residential segment, Fitch said in a report companies, has directed all lenders not to apply referring to demand and sales. pre-payment charges if a borrower repays his loan in advance of using his own funds. Home After a huge slump in 2009, real estate sales loan companies such as HDFC and LIC Housing zoomed on in 2010, driven by pent-up demand Finance are subject to NHB regulations. for homes, particularly in the affordable housing However, these guidelines do not apply to other segment. The trend was witnessed throughout large home loan providers like State Bank of the country. India and ICICI Bank, which are subject to Reserve Bank of India’s guidelines. FUTURE GROUP TO ENTER MORTGAGE LENDING ASSET MANAGEMENT COMPANIES TO Mint LAUNCH COMMERCIAL RENTAL YIELD FUNDS The financial services arm of Kishore Biyani’s The Economic Times Future Group plans to enter the mortgage lending business, seeking to tap burgeoning Higher rentals in commercial realty are drawing demand for home loans in a country where up to investor attention with asset management 800,000 apartments and houses are expected to companies expected to launch commercial be ready for possession in the next three years. rental yield funds soon. Five such schemes are Future Capital Holdings Ltd, as the financial

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services firm is known, has already registered a the number of units sold, with Mumbai home finance company named Future Capital witnessing the sharpest fall between August and Home Finance Pvt. Ltd with the Registrar of November. The city witnessed a drop of almost Companies (RoC), according to the RoC’s 44.7 percent during the period. website. The report said absorption rate picked up in the INDIAN REAL ESTATE IS FASTEST first half of 2010 but declined in the past two- GROWING MARKET three months. Pune and -National Capital The Pioneer Region (NCR) followed Mumbai with a fall of 26.6 percent and 11.7 percent, respectively. Real Estate is one of the fastest growing sectors in India. Market analysis pegs returns from realty OLD-FASHIONED REALTY in India at an average of 14 percent annually, Financial Chronicle with a tremendous upsurge in commercial real estate on account of the Indian IT/BPO boom, “There are some clear advantages that housing which has also moved into manufacturing sector board projects carry with consumers — clear resulting into growth of overall real estate sector. land title and prices that are lower than market The housing sector itself has been growing at an rates,” says Anshuman Magazine, chairman and average of 34 percent annually. Growth in the managing director of CB Richard Ellis South real estate sector depends on three major Asia. factors (a) Demand & Supply ratio (b) Economic activity(c) Available Liquidity. Rajeev Talwar, managing director, DLF Developers, says that housing boards are In the last 5 years demand in the real estate constrained due to the socialistic nature of their sector has grown many folds, due to economic business model. Agreeing with Magazine, he growth of the country. Another positive factor is says that housing boards probably need to focus that the average age of homebuyers has gone on mass or low cost housing and leave down significantly due to easy availability of affordable or premium housing to the private housing loans & the increased earning capacity sector that can bring in efficiencies of scale. of people. Demand has been further fueled, as real estate is considered to be a good MAYTAS PROPERTY GOES TO IL&FS, investment option, which can beat inflation by a SAYS COMPANY LAW BOARD good margin. The Hindu Business Line

REALTY SALES FALL IN MUMBAI, NCR IL&FS will hold 80 percent of the equity capital OVER HIGH PRICES by infusing Rs 20 lakh as equity share capital, Mint taking the paid-up capital of the company to Rs 25 lakh. The rest 20 percent of the equity will be If you plan to buy property in any under- retained by the family of Ramalinga Raju, construction project, the developer might offer Khurshid said. you further discounts. The findings of a survey by ICICI Securities Ltd shows high property Under the capital restructuring proposal, the rates led to a decline in the absorption rate, or IL&FS Group will have to mobilize Rs 150 crore

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within three months for the frozen projects of to be a major task for them. Repayment of Maytas Property, such as Maytas Hill County structured quasi-equity instruments totaling Residential Project. The first phase of the Hill 3,000 crore held by foreign investors is due in County project will have to be completed within the next couple of months and this is expected 18 months, said Khurshid. to stress already cash-strapped developers.

HOUSING PRICES MAY DIP 10 PERCENT At least four developers — three from Mumbai IN MUMBAI and one from Bangalore — had raised over The Financial Express 1,000 crore almost a year ago through this route. These funds raised by some realtors Residential property prices in Mumbai are likely through quasi-equity instruments around three to fall by 10 percent this year, but rise marginally years ago went to supporting their ongoing in the NCR, a Crisil study said. The extent of projects and land acquisitions. However, most of price decline would vary widely in Mumbai, these foreign investors may not be interested in whereas prices may inch up moderately across converting these instruments into equity and national capital region (NCR), it said. Mumbai hold stake in these realty projects, given the and NCR would together account for more than weakening demand for residential units and half the 1.5 billion sq ft housing supply planned possibility of a fall in prices, analysts said. in India's 10 leading cities up to 2013, the research firm said. DEMAND FOR OFFICE SPACE ON THE RISE VIBRANT GUJARAT 2011: TATA The Times of India HOUSING TO INVEST RS 1,000 CRORE IN TOWNSHIP After the initial slowdown in the office space The Economic Times market last year, there has been a gradual revival with corporates going ahead with their Tata Housing signed an agreement with the expansion plans. The extension of the STPI tax Gujarat government to investment Rs 1,000 benefit scheme from 2011 to 2014 is seeing an crore for developing a township in Ahmedabad upsurge in the number of IT and ITeS on a public-private partnership (PPP) model. companies moving into SEZs spurring growth

The agreement was signed on the second day Currently, there are 14 operational IT/ITes SEZs of the Vibrant Gujarat Summit at Gandhinagar, in the city with a total of 60 units operating within Tata Housing Managing Director and Chief these campuses, employing around 90,000 Executive Brotin Banerjee said. totally. Another 35 SEZs have been notified and are expected to employ 4.37 lakh people in their REALTY COS’ FINANCIAL WOES TO units, according to the Department of Industry MOUNT and Commerce website. The availability of large The Economic Times land parcels on the outskirts in north Bangalore, along the Outer Ring Road (ORR), Whitefield, The woes of realty developers may not ease Bangalore-Mysore highway and Electronic City anytime soon as pressure to repay debt and make these localities conducive to setting up redemption of quasi-equity instruments continue SEZs.

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TRUMP TO MAKE INDIA FORAY WITH MINISTRY SETS TERMS TO MUMBAI LUXURY TOWER RECONSIDER LAVASA PROJECT The Financial Express The Hindu Business Line

US billionaire real estate developer Donald Even as it termed the construction at Lavasa Hill Trump is entering the Indian property market City as ‘unauthorized' and ‘environmentally with a luxury residential tower in Mumbai, more damaging,' the Ministry of Environment and than two years after announcing plans to expand Forests (MOEF) said it is willing to consider the in the south Asian nation. project on certain terms and conditions. These include a hefty penalty and the creation of an Trump, who has joined with Mumbai developer environment restoration fund. Rohan Lifescapes for his first venture in the country, expects to start marketing the project by The Ministry said it could consider approving the March, said Donald Trump Jr, Trump’s son and project “because of the investments already executive vice-president at the Trump incurred, third party rights which are accrued, Organization LLC. the various steps taken for establishment of a comprehensive hill station development, the INDIANS ARE LOOKING WEST, BUYING employment generated and the claimed uplift of HOMES IN HIGH-END LONDON the area under consideration.” However, it The Indian Express imposed certain conditions, including Lavasa setting up an Environmental Restoration Fund Indians are now among the top 10 residential (ERF) “with sufficiently large corpus.” real estate buyers in the UK’s high-end Central London. A recent research and study by real NO NEW LOANS TO DEVELOPERS estate analysts Knight Frank International has AFTER CBI ACTION: LICHF found that while resident Britons have The Times of India increasingly reduced investing in property over the past two odd years due to the economic LIC Housing Finance new chief executive V K slowdown in England, the UK residential Sharma has said that the company has not property market is attracting Asians, who are extended any loans to developers since he took battling stiffer property rates back home. charge in November-end in order to take stock of its loan portfolio. According to the analysis, Asians comprise 49 percent of all investors in London’s residential According to Sharma, the company’s portfolio of property market. While the Chinese, loans to developers continues to be sound and Singaporeans and Malaysians hold the three there have been no fresh defaults. Sharma took spots after local Britons (who still comprise 36.9 charge as CEO after the former chief executive percent of all investments), Indians have made R R Nair was arrested in November by the their way into the top 10. The Russians have Central Bureau of Investigation on allegations of traditionally been some of the highest accepting a bribe from Money Matters, a loan international investors in the global capital going broking firm. Nair was subsequently released on by the money they put in, according to real bail and the matter is under investigation. estate consulting agency Knight Frank.

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PIRAMAL RE-ENTERS REALTY FOR estate sector including cineplex, multiplex, GROWTH integrated townships and commercial complexes Financial Chronicle etc, attracted a cumulative FDI of $8.4 billion from April 2000 to March 2010, the department Six months after selling off the domestic generic said. pharmaceutical business of Piramal healthcare in a multibillion-dollar deal, Ajay Piramal, Private Equity News chairman, Piramal Enterprises group has embarked on a major foray into real estate by PE COS CAUTIOUS ON REAL ESTATE setting up a wholly owned firm Piramal Realty. PROJECTS The Financial Express REALTY BITES: SALE OF FLATS AT ALL-TIME LOW Given the tough phase that the real estate The Indian Express segment is going through, private equity (PE) players are either limiting themselves to high- The sale of residential property in Mumbai has return residential projects or have adopted a hit rock bottom with stamp duty registration cautious approach before investing in real estate figures in December 2010 being almost 40 projects. percent lower than those in the corresponding month last year. PE players are expecting an internal rate of return (IRR) of about 20-25 percent on their While 9,276 flats were registered in December investments, compared to an IRR of 10-12 2009, only 5,927 flats were registered in percent that PE players were seeking when the December 2010. “Since December 2009 until realty market was at its peak. Therefore, now, property prices in Mumbai have gone up in developers seeking the PE route are expected the range of 30 percent to 50 percent. The dip in to see some impact on profit margins and delay property sales shows there is clear resistance to some of the projects scheduled to be launched high prices,” said Pranay Vakil, chairman of in 2012-13. At the same time, some developers Knight Frank (India). are expected to focus on affordable housing to generate short-term cash. INDIAN REAL ESTATE SECTOR ATTRACTS $2.8 BILLION FDI HDFC PROPERTY VENTURES TO SELL The Indian Express COMMERCIAL ASSETS Mint The housing and real estate sector in India witnessed foreign direct investment (FDI) of $2.8 Real estate fund HDFC Property Ventures Ltd billion in the fiscal year (April-March) 2009-10, has put up nearly half of its office space asset according to Indian Department of Industrial portfolio for sale at Rs 640 crore, said two Policy and Promotion. The statistics made people with direct knowledge of the matter. available at the IndiaHome property exhibition in Dubai revealed that total NRI FDI inflows The property fund, which manages a total 3.5 through the period April-December 2009-10 million sq. ft of office space assets, has short- stood at $320.05 million. The housing and real listed six properties in business districts in

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Mumbai, Bangalore, Pune and Hyderabad to estate sector. They expect returns between 20 either be part-sold to individual buyers or wholly and 25 percent, post tax. These expectations to another fund. Kotak Realty Fund, too, in are almost the same as what they were before December sold its pre-leased office building in the downturn - however, the structure has suburban Mumbai to Tata Realty and changed, as private equity funds are now Infrastructure Ltd for Rs 550 crore. focusing more on capital protection. In other words, they seek lower risk even if that means REALTY FIRMS TAP PE FUNDING TO slightly lower returns. Currently, the proportion is COMPLETE PROJECTS heavily skewed towards residential. This can be Mint attributed to the fact that the residential sector is correctly seen as a self-liquidating asset class, -based realty firm Parsvnath while commercial and retail have exit-related Developers Ltd (PDL) has raised Rs.100 crore concerns due to non-availability of REIT/REMF by selling 49.9% stake in a housing project at vehicles in India. to private equity (PE) firm SUN- Apollo India Real Estate Fund LLC. The 31-acre KUMAR URBAN SEEKS 1,100-CRORE PE housing project “Parsvnath Exotica” is being FUNDING developed by its subsidiary Parsvnath Buildwell The Economic Times Pvt. Ltd. Realty firm Kumar Urban Development is in In another development, Red Fort Capital advanced negotiations with private equity Advisors Pvt. Ltd is close to investing Rs.150 players to raise over 1,100 crore, or $250 crore in the “Esencia” township project in million, by selling stakes in five of its projects in Gurgaon of Ansal Properties and Infrastructure Mumbai and two in Pune. The company is Ltd. looking to dilute up to 26 percent each in a residential township project and an information PRIVATE EQUITY BACK IN BUSINESS technology special economic zone at Hinjewadi The Economic Times in Pune for 450 crore ($100 million). It also plans to sell 49 percent stake in five of its Mumbai With the return of confidence in the Indian real projects — that are being bundled together as a estate sector, developers are once again looking portfolio — for 680 crore ($150 million), sources at private equity funding. The industry still close to the development said. depends heavily on bank debt, NBFC funding and end-user advances. This is because bank SHRIRAM PROPERTIES PLANS TO debt is a cheaper option, and also because it RAISE RS 700 CRORE offers flexible tenures. Moreover, it is easily The Hindu Business Line available domestically. NBFC funding is also available at cheaper rates and can be repaid Real estate developer Shriram Properties plans early. This makes it more flexible. Finally, end- to raise over Rs 700 crore in the next few user advances represent interest free finance. months through private equity placements in its existing projects. “We are looking at diluting Private equity investors, on their part, are existing projects to get new investment. We definitely interested in investing in India's real have good cash flow, and have no debt,” M.

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Murali, Managing Director, Shriram Properties, Rs 750-crore real estate fund and is looking for said. According to him, the company will not people to manage it. dilute more than 50 percent stake in each project. The company is considering senior executives from Mumbai-based Edelweiss Securities and KOTAK REALTY PICKS UP STAKE IN realtor Tishman Speyers for top positions and TOTAL ENVIRONMENT candidates from Trikona and realty fund The Economic Times IndiaREIT for the mid management level, according to people involved in the recruiting Kotak Realty Funds Group, the real estate process. LICHFL Asset Management will raise private equity arm of Kotak Mahindra group, has Rs 500 crore with a greenshoe option of Rs 250 picked up an undisclosed stake in Total crore through co-sponsors LIC and LIC Housing Environment Building Systems, a Bangalore- Finance, who will put in about 20 percent of the based luxury developer, for Rs 100 crore. The corpus. money will be used to develop a residential project in south Bangalore, which would have an CENTURY REAL ESTATE SET TO RAISE overall capital investment outlay upwards of Rs RS 700 CRORE 300 crore, a person familiar with the development said. Century Real Estate Holdings, the realty BARING MAY INVEST 350CR IN development arm of three-decade old BANGALORE REALTY CO Bangalore-based Century Group, is looking to The Times of India raise Rs 700 crore through private equity players in three tranches. Baring Private Equity Partners India (BPEP), along with some of its international investors, is OMSHAKTHY TO RAISE RS 75 CRORE likely to invest about $75 million, or FROM PRIVATE EQUITY approximately Rs 350 crore, in the Bangalore- Business Standard based Century Real Estate. Baring’s individual commitment to the deal is around $53 million, Omshakthy Agencies (Madras) Pvt Ltd plans to while overseas investors who are backing the raise Rs 75 crore from a private equity (PE) fund fund may bring in a little over $20 million in for its proposed township project. additional investment. Deal could be closed in February. Public Markets

LICHF ARM PLANS 750 CRORE-REALTY SEBI BANS ROSE VALLEY FROM FUND RAISING CASH The Economic Times The Financial Express

LIC Housing Finance Asset Management Market regulator Sebi has barred West Bengal- Company, a unit of LIC Housing Finance, which based Rose Valley Real Estates & Construction figured in the bribes-for-loan scam, is planning a from raising money from the public on the

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charge that it did not seek the watchdog's which approximately 40 million sq ft is already permission for running a scheme. booked.

While Rose Valley claimed that it was mobilizing APPU HOTELS TO GO FOR IPO BY 2012 funds for real estate business, Sebi came to the Business Standard conclusion that the company was in fact running a Collective Investment Scheme (CIS) and did Appu Hotels Ltd, which owns two five-star hotels not seek market regulator's permission, -- Hotel Le Royal Meridien in Chennai and Le mandatory for these products. Meridien in -- is planning for an initial public offering (IPO) to support its Rs 500- PARSVNATH RAISES RS 100 CRORE crore expansion plan. VIA EQUITY SALE Financial Chronicle REALTY INDEX AT 20-MTH LOW; FIIS PARE EXPOSURE Realty firm Parsvnath Developers said it has The Financial Express raised Rs 100 crore by selling 49.9 per cent stake in a housing project at Ghaziabad to The worries of real estate companies seem far private equity (PE) firm Sun Apollo. The 31-acre from over as foreign investors flee the sector housing project 'Parsvnath Exotica' is being and most analyst turn bearish on fears of further developed by its subsidiary Parsvnath Buildwell. rate hikes. Most realty stocks got battered as investors cut exposure to the sector. The rate- "Sun-Apollo will invest up to Rs 100 crore for a sensitive BSE Realty index declined about 5 49.9 per cent stake in the project SPV Parsvnath percent to 2,397, a 20-month low. Heavyweights Buildwell, which will develop the project," scrips, DLF, Unitech, Indiabulls and HDIL, who Parsvnath said in a statement. The construction together account for 74 percent of the index of the project has already commenced and all weightage, lost anywhere between 3 percent requisite approvals, including sanction of and 10 percent. building plans, have already been obtained. Land Deals Since 2009, Parsvnath has raised nearly Rs 440 crore through two rounds of private placement of PENINSULA LINES UP 2,500 CRORE equity shares with institutional investors and FOR LAND ACQUISITION another Rs 410 crore by selling stakes at project The Economic Times level to PE firms. Realty developer Peninsula Land, part of the The company had utilized the Rs 850 crore Ashok Piramal Group, is looking to spend over raised through Qualified Institutional Placement 2,500 crore in the next 12 months on buying (QIP) and private equity at project level to cut its land, mostly in Mumbai. “We have earmarked debt and meet the construction cost. over 2,500 crore for land acquisition in 2011. All of this will be financed through our internal At present, Parsvnath is working on 54 projects accruals. Around 60-70 percent of this will be with a total area of 80.68 million sq ft, out of spent on land parcels in Mumbai,” group managing director Mahesh Gupta said.

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Currently, the company owns a total of 300 Chennai to Homex, a Mexican pre-fabricated acres, including 100 acres in Pune and 94 acres affordable housing company, for 130 crore. in Nashik. Apart from that, it also has three projects under construction in Mumbai. “We are NTC PLANS TO SELL 75 ACRES OF in talks to acquire two land parcels in Mumbai, MILL LAND IN MUMBAI, B’LORE and one is expected to be concluded by March The Economic Times this year. We are scouting for more,” Gupta said. State-Owned National Textile Corporation has Peninsula recently acquired a 33-acre plot at put 75 acres of defunct textile mill land in Hinjewadi in Pune for 140 crore from joint Mumbai and Bangalore on the block, a year owners Ekta Group and Oxford Group. The after it mopped up 2,100 crore. NTC earned company is planning to develop a residential almost double the base price during the 2010 project on the plot. “We are looking at online auction and hopes for an encore with completing the entire development (at property prices spiraling. Hinjewadi) in the next four years. MUMBAI’S ANDHERI (EAST) SELLS FOR INDIAREIT PROFITS FROM MUMBAI RS 800 CRORE PLOT EXIT The Times of India The Economic Times In perhaps the largest land transaction beyond Indiareit Fund Advisors, a real estate venture Bandra, a seven-acre plot in Andheri (East) was capital fund backed by the 3i Group, has exited sold for around Rs 800 crore last week. The from its investment in a commercial project in 30,000 sq m Popular Car Bazar on Andheri- Kurla Mumbai being developed by Neptune Kurla Road, owned by Mumbai-based real Realtors. The fund house is exiting with returns estate company HDIL, sold it to the Kanakia of 450 crore on an investment of 145 crore Group a few days after Christmas last month. made in 2006, according to two sources with direct knowledge of the deal. Both Neptune and SC NOTICE TO CENTRE, GOA ON SEZ Indiareit Fund held 50 percent each in the land LAND ALLOTMENT being developed. Financial Chronicle

“The company has made three times the money The Supreme Court issued notices to the Centre by selling its stake in the deal that will be and the Goa government for cancelling land announced formally soon,” said one person with allotment for seven Special Economic Zones direct knowledge of the development. (SEZs) to firms, including realty player K Raheja group and directed them to maintain the status KOTAK REALTY SELLS RESIDENTIAL quo. A Bench comprising Justices Dalveer PLOT TO HOMEX FOR 130 CRORE Bhandari and Deepak Verma issued notices to The Economic Times the Centre, Goa governments and Goa Industrial Development Corporation (GIDC), Kotak Realty Funds Group, a real estate private asking them to maintain status quo. The apex equity arm of Kotak Bank, has sold a 20-acre court's direction follows a batch of petitions filed residential plot in Old Mahabalipuram Road in by the Raheja group and other companies

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challenging the order of the Goa Bench of the 135-ACRE MUM PLOT FETCHES 601 Bombay High Court. CRORE The Times of India GODREJ PROPERTIES-JET AIRWAYS LAND DEAL LIKELY BY END Q4 In what real estate experts believe could be a The Hindu sign that land rates are becoming more realistic, a 135-acre plot that belonged to the defunct Adi Godrej-led Godrej Properties said it will PAL-Peugeot auto company in Dombivli has close a deal to buy private air carrier Jet Airways been auctioned off to Metropolitan InfraHousing 2.5-acre plot at the Bandra Kurla Complex Pvt Ltd (a subsidiary of Gammon India), which (BKC) here during the ongoing quarter of the offered the highest bid of Rs 601 crore. Bombay 2010-11 financial year. High Court Justice R Y Ganoo confirmed Gammons bid following an auction in December “We will close the deal in this fiscal itself. 2010. It is the latest development in a nearly 12- However, we can’t provide any further details on year saga to sell a total of 180 acres located 5 this,” a top Godrej Properties official said on km from Dombivli station. condition of anonymity. Jet Airways, the owner of the land parcel at the BKC, wants to sell the RMZ CORP TOP CONTENDER FOR property so that it can pay off the Rs. 400 crore SIEMENS’ BANGALORE LAND it had borrowed from HDFC Bank to buy the The Economic Times land from the Maharashtra government. Electrical equipment firm Siemens is close to HTL'S CHENNAI PROPERTY TO BE RE- selling its eight-acre land parcel in Bangalore for AUCTIONED close to Rs 400 crore. Bangalore based realty Financial Chronicle developer RMZ Corp is believed to be the top contender to buy the property with the highest Jones Lang Lasalle (JLL), a leading international bid among the five shortlisted candidates, two property advisory, is testing the waters for the persons familiar with the development told ET. second time by lining up a prime property of Hindustan Teleprinters Ltd (HTL), now majorly The deal is being handled by Siemens directly owned by HFCL, for e-auction, set to take place without involving any realty consultancy firm. next month. The nearly 11-acre property was The bidding process for the land parcel located originally e-auctioned by JLL in March, 2007. in Koramangala Road was concluded on Bangalore-based property developer, RMZ Corp January 7 after an exercise, which lasted almost successfully bid for around Rs 298 crore, at a six months. The transaction is expected to be little over Rs 27 crore per acre. one of the largest in terms of value in the last However, following the Tamil Nadu couple of years in the Bangalore realty market. government's desire to take back the land, Other developers who have bid for the plot originally allotted to HTL, then a Central-PSU, in include Nitesh Estates, Hiranandani Upscale, a 1973, the auction hit a roadblock. Though HFCL realty fund, and an auto component company. later sought legal recourse, the delay in completing the deal enabled RMZ to wriggle out of it, sometime in early 2008.

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LUPIN IN TALKS TO BUY 300 ACRES CYBERPARK: FIRST TENANTS TO FROM INDIABULLS MOVE IN LATE THIS YEAR Hindustan Times The Hindu Business Line

In what could be the biggest real estate deal The tenants of the first IT building coming up in based on land size in the year, pharmaceuticals Cyberpark, promoted by the IT Department of major Lupin Ltd is learnt to be in talks to acquire the State Government here, will be able to move 300 acres of land near Nashik in a special in by late 2011. They will be offered the flexibility economic zone (SEZ). According to people to design their own customized space and close to the development, the company is in final layouts to suit their business needs, according to stages of discussions with Indiabulls to acquire Binu. A. Pazhoor, Chief Executive Officer of the land in the latter’s Sinnar SEZ near Nashik. Cyberpark. Lupin is planning to set up an export-based manufacturing facility in the area. Apart from providing office space for small and medium enterprises, the park will also play host Though it is difficult to pin down the exact value to major players, including multinationals, of the land, going by the land being sold in the enabling them to set up regional operations of vicinity of the SEZ, the price of the patch that global communications, outsourcing, data Lupin wants could be around Rs 300 crore. management and technology development. Also, local graduates from Kozhikode and Technology Parks/SEZs neighboring areas will benefit from the Cyberpark's Graduate Attachment and Training AMR INFRA TO INVEST RS 1,100 CRORE programme, which is designed to develop and The Hindu Business Line retain talents as part of the State's efforts to intensify human capital development Realty firm AMR Infrastructure said it will invest about Rs 1,100 crore by 2014 to develop its four STEPS ON TO IMPROVE INFRA IN different projects, including an IT Special VIZAG'S IT SEZ Economic Zone (SEZ) in Greater . AMR The Hindu Business Line Infrastructure Director, Kapil Agarwal said the company will fund the investment through The two IT Special Economic Zones at internal accruals and revenues coming from Rushikonda, unattended for long without basic customers’ bookings. The company is at present infrastructure, may see better days ahead, if the developing a 25—acre IT SEZ — Manthan, district administration implements its plans spread over 24 lakh square feet of built—up swiftly. More than forty companies have been area in Greater Noida. allotted plots located on the two hills at Rushikonda, overlooking the Bay of Bengal on Agarwal said the company is expecting gross the Vizag-Bheemunipatnam beach road. sales of about Rs 1,200 crore over the next five years. AMR Infrastructure has also purchased The companies have been complaining that five acres of land at Ujjain in Madhya Pradesh there are no proper roads, transport, water for developing a shopping mall. supply or telecommunications facilities in the SEZs. “There is not even a post office here, and

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only one APSRTC bus is plying from the city to GUJ TO HOUSE GEOSPATIAL TECH Rushikonda SEZs. We are making our own PARK transport arrangements for our staff,” complains Business Standard Naresh Kumar, the Chairman of Symbiosys Technologies. In order to push research in space technology and surveying activities in various parts of the FIRST PHASE OF SEZ TO BE READY BY state, Gujarat government will set up Geospatial JANUARY 20 Technology Park, which will be the first of its The Hindu kind in India.

The first phase of Gangaikondan Information DUBAI OFFICIAL TO VISIT Technology Special Economic Zone (SEZ), SOON TO SETTLE SMART CITY ISSUE being developed by Electronics Corporation of The Hindu Business Line Tamil Nadu on 100 acres on an outlay of Rs. 25 crore, is likely to be completed by January 20. A representative of the Dubai Supreme Fiscal Committee (DSFC) is expected to visit Kerala Managing Director, ELCOT, Santhosh Babu, shortly in a bid to break the logjam over the said the main building was being built with long-pending Smart City project in Kochi. Being 50,000 square feet at the cost of Rs.15 crore co-promoted by the Dubai-based Tecom while other infrastructures were being developed Investments, a subsidiary of Dubai Holding, the on an outlay of Rs.10 crore in the first phase, Rs 1,500-crore project had stalled over freehold which would be completed before January 20. rights over a designated portion of the land acquired for the project. TAMIL NADU IT SEZ TO START FUNCTIONING BY YEAR-END IL&FS TO PICK UP STAKE IN RELIANCE The Hindu Business Line ARM PROJECT The Hindu Business Line The Tamil Nadu government said that IT Special Economic Zone in Krishnagiri district will start Reliance Ventures has entered into an functioning by the end of the year and will agreement with Infrastructure Leasing and provide direct and indirect employment to 1.5 Financial Services, whereby IL&FS will become lakh people. “The tender for construction of a strategic partner and co-promoter of a project 50,000 sq ft IT-cum- administrative building has to develop a model economic township at been finalized and the work order issued,” IT Jhajjar, Haryana. Reliance Ventures is a wholly Minister Poongothai Aladi Aruna told the owned subsidiary of Reliance Industries. Assembly. She said the facility coming up at The project is a spin off from Reliance Haryana Viswanathapuram village in the district would SEZ Ltd, a joint venture between Reliance start operations in another 10 months. The Ventures and the Haryana Government. IL&FS foundation stone for the IT Park coming was laid will acquire 45 percent equity in the project in 2008 by Chief Minister M Karunanidhi. company, where Reliance Ventures and the Haryana Government will hold 45 percent and 10 percent respectively.

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VIGNESHWARA DEVELOPERS TO such as Le Meridien, Sheraton, Westin, Aloft, BUILD TECHNOLOGY PARK FOR HSIIDC Four Points by Sheraton and the Luxury The Economic Times Collection. The company is looking to get its other brands - St.Regis and W - to the country. Vigneshwara Developers is developing a ten- Vasant Prabhu , vice-chairman and chief acre business-cum-technology park for the financial officer, Starwood Hotels & Resorts Haryana State Industrial & Infrastructure Worldwide Inc, tells that India is set to become Development Corporation (HSIIDC) within the the third-largest market for the hotel chain in 150-acre technology corridor at Manesar in three years after USA and China. Gurgaon. ITC-WELCOMGROUP TO INVEST $2 B Sunil Dahiya, managing director, Vigneshwara TO DOUBLE ROOM INVENTORY Group, said: “One ought to have a vision to The Hindu Business Line effect a paradigm shift in industry standards and rewrite trends and utility norms to stand out and ITC-Welcomgroup, the second largest hotel ensure scalable and sustainable development, chain in the country and a division of ITC Ltd, rather than just follow conventional methods and plans to invest over $2 billion (around Rs 9,000 applications. crore) in the next 2-3 years to double its room inventory across the country. “We are pursuing Hospitality an aggressive investment-led growth strategy, and are adding large properties to our portfolio ITC ARM OPENING HOTEL IN MYSORE of super luxury hotels,” said Nakul Anand, SOON Executive Director, ITC Ltd. The Hindu Business Line AMBUJA REALTY MULLS BOUTIQUE Fortune Park Hotels, a subsidiary of ITC HOTEL ON KOLKATA HERITAGE Welcom Group, is to open its Mysore hotel, PROPERTY Fortune JP Palace, shortly. According to a The Hindu Business Line senior company executive, the Mysore property is positioned in the mid-market to upscale Kolkata will have one of its heritage buildings segment and will cater to the new-age traveller. converted into a hotel for the first time to ensure “There are a total of 108 rooms, including 99 the upkeep of the property now in poor standard rooms and Fortune Club rooms and condition. Ambuja Realty plans to develop a nine suites.” theme-based boutique hotel on 4-bigha (80 kottas) ‘Basu Bati' (House of the Basus) in north OUR GOAL IS TO RUN 100 HOTELS IN Kolkata. FIVE YEARS The Economic Times LEMON TREE TO SPEND $1.2 BN ON EXPANSION Starwood Hotels & Resorts manages 30 hotels Financial Chronicle in India and expects to run 17 additional hotels in the next three years under its various brands Lemon Tree Hotels, one of India’s largest chain of moderately-priced, upscale, full-service

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business and leisure hotels, expects to own over foray into hotel and green technology projects 2 percent of all hotel rooms in the country in the across the state. A memorandum of next two years. The company expects to meet understanding (MoU) for Rs 850 crore was this target based on its aggressive growth plans signed at the Vibrant Gujarat Summit 2011 in and positioning in the hospitality sector. capital between the Goldi group and the government. Lemon Tree owns and operates 13 hotels in 10 cities, aggregating over 1,200 rooms, with 1,500 VICEROY HOTELS TO ADD MARQUEE employees. PROPERTIES IN CHENNAI, BANGALORE The Hindu Business Line CARLSON PLANS TO OPEN 19 HOTELS IN INDIA Viceroy Hotels Ltd, the Hyderabad-based Financial Chronicle hospitality player, is poised to add three properties during the year, including two major International hospitality major Carlson, which hotels in Chennai and Bangalore, which entails runs the luxury chain Radisson, plans to scale a capital expenditure of Rs 1,200 crore. up its Indian operations to 50 hotels this year and also looks at more than doubling the “This will take the company inventory of hotel portfolio by 2015, its president and CEO Hubert rooms up from 560 from three properties to Joly said. 1,250 from six hotels. This includes two marquee properties in Chennai and Bangalore. LANGHAM HOTELS TO INVEST $100M IN This addition augurs well for the company and 4 PROJECTS boost revenues as the new additions are coming The Times of India up at prime locations in rapidly growing metros,” P. Prabhakar Reddy, chairman and managing Hong Kong-based Langham Hotels International director of Viceroy Hotels, said. (LHI) will invest $100 million to develop four properties with over 650 keys in the Indian HOTEL BRANDS JOSTLE FOR SHARE market. Asian property giant Great Eagle OF MID-SCALE PIE Holdings, listed in Hong Kong, controls the Financial Chronicle European hospitality brand Langham with a chain of hotels across the world. Langham has The budget/mid segment is turning out to be the also firmed two projects to be developed at new battleground for hotel brands, both foreign Lavasa, a lake city project being developed by and domestic, in India. “Mid-scale hotels will be Hindustan Construction Company (HCC), which the focus area for us as there is a huge demand- is also near Pune. supply mismatch in India compared to world markets. Country Inn and Suites, Park Plaza DIAMOND GROUP TO LAUNCH HOTEL and Park Inn are our best upper-mid-scale and CHAIN mid-scale brands suitable for the Indian market,” The Times of India said Hubert Joly, president, CEO and director, Carlson Hotels. Joly said that the company In a move aimed at diversifying its business from plans to open 15 Country Inn, eight Park Plaza diamonds, city-based Goldi group is planning to

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and two Park Inn hotels in the next 2-3 years. All annualized basis, opening five to seven hotel of them would be management contracts. properties will be more or less the norm.” Some of the cities, which will see Hilton properties A recent report by Knight Frank India, a global coming in, include Chennai, Bangalore and property consultancy firm, estimated room Gurgaon. demand for mid-scale and economy hotels in India to grow at an average annual growth rate HOTEL CHAINS SPANNING TO of 9.3 percent. SMALLER TOWNS: SURVEY Deccan Herald IHHR HOSPITALITY PLANS TO INVEST RS 950 CRORE Prompted by a sizeable growth in domestic The Economic Times tourism and seeking to tap the surging middle class, hotel chains of all hues — Indian and IHHR Hospitality plans to invest Rs 950 crore international — are set to tweaking their over the next few years to open four hotels business models by focusing on mid-market under the Ista brand and one under the Ananda hotels across the country. brand, reports Gouri Agtey Athale. The group is in the process of pulling out from running the A slew of hospitality companies like Indian Shanti Ananda Maurice hotel in Mauritius, which Hotels Company of the Tata Group, East India has already dropped the Ananda from its name. Hotels (EIH) of Oberois, the ITC Group, Royal "India offers a better return on investment than Orchid, Kamat Hotels India, Claridges Hotels, overseas since the hospitality sector here is still the Jaypee Group and the Pride have plans to growing," said IHHR Hospitality MD Ashok bridge the gap between luxury hotels and more Khanna. modest accommodation, according to a study by HVS Global Hospitality Services, which brought HILTON PLANS 5-7 HOTELS IN INDIA out the 13th edition of Indian Hotel Industry EVERY YEAR Survey recently for the for the Federation of The Financial Express Hotel & Restaurant Association of India.

Hospitality major Hilton Worldwide plans to add WYNDHAM SET TO OPEN FIRST five to seven properties on an annualized basis PROPERTY IN INDIA AT DWARKA in India. The hotel company has just three The Indian Express operational hotels in the country. During the current year, it plans to open six to seven new Wyndham Hotel Group, part of the New York hotel properties. It will be adding a room Stock Exchange listed Wyndham Worldwide inventory of 1,200 with these six to seven new Corporation, recently announced the signing of a properties this year. franchise agreement to open its first Wyndham Hotels and Resorts property in India. Located in Martin Rinck, president — Asia-Pacific, Hilton Dwarka, New Delhi, the 394-room Wyndham Worldwide, said, “We currently have just three Hotel is currently under construction and trading assets (hotels) in the country, including scheduled to open in April. two in New Delhi and one in Mumbai. We expect to double our trading assets this year. On an

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EWDL TO SET UP 10 HOTELS, PUMP IN country into a new entity called TCI Developers, RS 350 CRORE he said. The new entity will focus on developing Financial Chronicle logistics, warehousing parks/godowns, container terminals across the country for both captive as Entertainment World Developers (EWDL), a well as third party purposes. The new entity also Phoenix group company, plans to invest around ventures into developing office, residential Rs 350 crore in setting up 10 upscale hotels in space. Madhya Pradesh, Jharkhand, and Maharashtra over the next two-three years. “We OFFICE LAUNCH IN IT PARK are developing 10 hotels in the central part of The Telegraph the country, for which we are seeking partners who will manage them. We are looking for Industries minister Nirupam Sen inaugurated an brands like Royal Orchid and Sarovar, among office in the Bantala IT hub, hailing its potential others,” Vivek Narain, executive vice-president to create jobs and generate income even as the (finance and business development), EWDL, stench of chemicals from the adjoining leather said. complex hung heavy in the air. The office of Cognizant Technology Solutions has come up in Commercial Properties a 130-acre special economic zone, carved out of a 1,200-acre leather complex in Bantala. TCI FLOATS JV WITH CONCOR, ENTERS REALTY AIPL AMBUJA TO INVEST RS 2,000 The Financial Express CRORE IN PUNJAB The Financial Express Transport Corporation of India (TCI), one of the leading integrated supply chain and logistics Real estate developer AIPL Ambuja Housing solution provider, has entered into a pact with and Urban Infrastructure Limited said that it CONCOR (Container Corporation of India) to would invest Rs 2,000 crore for setting up float a 51:49 joint venture called Infinite Logistics housing and mall projects at various places in Solutions Private Limited for bulk multimodal Punjab. “We intend to invest Rs 2,000 crore on logistics solutions by both rail and road. TCI is various upcoming projects in Punjab,” AIPL strong in road transportation and CONCOR is Ambuja, director, Harinder Singh said. The strong in rail mode. By joining with the latter, TCI company would be setting up two malls in set to offer great benefits to both existing as well Jalandhar and Khanna and housing projects in as new customers. "The JV will offer a single Mohali, Gobindgarh-Khanna and Amritsar. window multimodal solutions to enable customers save costs anywhere between 5 BANKS TIGHTEN LENDING FOR percent to 25 percent on logistics depending COMMERCIAL REALTY upon sectors and locations," said Vineet Mint Agarwal, executive director, TCI. Banks are getting tough with developers of The company has entered into real estate commercial projects such as office buildings, business recently by demerging all the existing malls and shopping centres—a fallout of the unutilized assets (land banks) across the corporate loan scam that came to light last year.

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Meanwhile, several large property developers for completion in the next two years. More than have to repay loans in the coming months. 60 percent of the upcoming supply is Builders seeking fresh loans have been asked to concentrated in the three big markets of NCR, meet more stringent conditions, including Mumbai and Bangalore. Of this, almost 70 demands to produce five-year lease agreements percent is IT-dominated like IT parks and SEZs," with tenants, and having to settle for it said. considerably lower borrowings against future rent receivables, two bankers said. Residential

India’s top developer DLF Ltd needs to repay AKSHAYA UNVEILS JANUARY ON OMR around Rs.1,600 crore of debt by 31 March. It Financial Chronicle repaid Rs.1,224 crore as of end-September with money raised by selling land as well as stakes in Akshaya, a Chennai-based property developer its retail business, according to numbers with focus across south India, has launched a provided by the company after its second residential apartment project at Thaiyur on quarter earnings. Its net debt now stands at OMR, the city’s IT corridor. The new project, Rs.19,000 crore. Housing Development and January, to mark its launch on the eve of the Infrastructure Ltd (HDIL) has to repay Rs.350 New Year, is coming up over 5.82 acres. It will crore by March 2012, and it intends to do so be an internationally styled micro-township and through large land sales and cash flows from its will offer 688 apartments. With sizes ranging residential transactions, said Hari Prakash between 605 sq ft and 1,400 sq ft, it will offer a Pandey, vice-president (finance and investor wide choice of 1 BHK, 2 BHK and 3 BHK relations). residential units.

7 CITIES SOAKED MOST OFFICE SPACE HOYSALA LAUNCHES APARTMENT IN '10 PROJECT The Times of India Financial Chronicle

The top seven cities in the country absorbed 32 Bangalore-based Hoysala Projects has recently million square feet of office space in 2010, launched a high-end residential project, Hoysala stated an India Office Market View report by Infantry Towers, located on Sanjaynagar main global property consultant C B Richard Ellis. The road, between Hebbal Flyover and Mekhri circle, report covers Grade A and Grade B office space about 750m away from NH7. rentals and market movements across the national capital region (NCR), Mumbai, The project will comprise 40 units. With Bangalore, Chennai, Hyderabad, Pune and Bangalore’s secondary business district Kolkata. Mumbai, NCR, Bangalore and expanding rapidly in all directions and north Hyderabad led the country in space absorption. Bangalore being particularly sought after due to its proximity to the airport, areas such as On the other hand, 55 million square feet of Sadashivnagar, Sanjaynagar and RMV office space came into the market in these Extension are now hot properties. Hoysala seven cities during the period. "It is estimated Infantry Towers has been launched taking into that another 55-60 million square feet is lined up account this demand, Hoysala Projects said.

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BRINDAVAN FROM MARG PROPERTIES security, power back up, amphitheatre, state of Financial Chronicle the art gymnasium, cabs on call, steam/sauna/massage rooms, indoor games, Marg Properties, the real estate arm of Marg, swimming pool, coffee shop, unisex salon, party has recently launched the Brindavan project that hall, laundry services, club facilities and to top will offer smart, affordable homes in lush scenic them all a in compound OPD, ambulance on surroundings. The residential project is centrally call, doctors on call, stretcher lifts and wheel located between Sriperumbudur and Oragadam chairs for elderly and sick. on a six-lane expressway and has been launched with a special introductory price of Rs PURVANCHAL ROYAL PARK 1,999 per sq ft. The Tribune

DREAMZ REALTY LAUNCHES SCHEME Purvanchal Group has launched Purvanchal Business Standard Royal Park project on Noida Expressway (GH - 004, Sector 137 Noida). According to the Mumbai-based Dreamz Reality has launched Chairman and Managing Director of the group the second phase of Sai Nisarg affordable Shah Alam, “The market still lacks good projects second home plots at Shahapur, near Mumbai. and Noida has a great potential so we have decided to launch Royal Park on Noida RAMKY KICKS OFF WORK FOR Expressway. We are receiving huge quires from ‘DISCOVERY CITY’ the buyers.” At ‘Royal Park’, the residents would Financial Chronicle enjoy location advantage with lush green surroundings and seamless connectivity. Spread Ramky Estates & Farms, a real estate company over 12.50 acres, it offers a pollution free high belonging to the Ramky group, has Kicked off its standard of living and highly supportive project ‘Discovery City’, a satellite town near the infrastructure of a well integrated Industrial Shamshabad International Airport in Hyderabad. Township. The project will have three, four and five BHK apartments and penthouses in the The complex promises to offer housing, retail, price range of Rs 46 lakh to over Rs 1 crore. shopping centres, education, healthcare and recreation services — all under one roof. The L&T, TATAS TIE UP WITH MILESTONE 600-acre project has already signed an HOUSING PLANS agreement with the Art of Living Foundation to Financial Chronicle establish an international school, with the academic session beginning in 2012. Milestone group's real estate consulting arm, Milestone Ecofirst Advisory Services, has tied up GULSHAN I HOMZ with Tata Housing, L&T and PRA Realty for the The Tribune development of mid and low cost housing projects, as it sees strong demand conversions Gulshan Homz recently launched Gulshan I during the current and the next fiscal. Homz at Noida Extension. The project will have earth quake resistant design, rainwater Besides housing, the company also has harvesting, immaculate landscape, 24x7 interests in healthcare segment and is in talks

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with few renowned healthcare groups like Fortis, This project, Pearls City, is coming up right Apollo and Kims of Hyderabad for the across the Knowledge City, and will be spread deployment energy saving methods that would over 200 acres and will have 800 plots in the bring down the costs for the companies. The first phase, said K S Toor, director of the processes would include installation of clean company. technologies for wastewater treatment and solid waste disposal. PRIMEX ENTERS RESI SEGMENT The Hindu TRUMP TO MAKE INDIA FORAY WITH MUMBAI LUXURY TOWER The Chennai-based real estate promoter, The Financial Express Primex Infrastructure Pvt Ltd, will be launching its residential project “Verterra” at US billionaire real estate developer Donald Mugalivakkam, at Porur near here. The Trump is entering the Indian property market company has already constructed nearly five- with a luxury residential tower in Mumbai, more lakh sq. ft., of commercial space of factories, than two years after announcing plans to expand warehouses, office space and power plants. It is in the south Asian nation. now entering the residential segment.

Trump, who has joined with Mumbai developer Addressing a press conference Anil Saraogi, Rohan Lifescapes for his first venture in the managing director, Primex Infrastructure, said country, expects to start marketing the project by the Rs.125-crore project, Verterra, would be March, said Donald Trump Jr, Trump’s son and spread across 4.2 acres and would have executive vice-president at the Trump schools, markets, hospitals and hotels in close Organisation LLC. proximity.

NITESH ESTATES LAUNCHES VILLA INTEGRATED TOWNSHIP FOR THE PROJECT IN GOA JAPANESE COMING UP ON OMR Financial Chronicle The Hindu Business Line

Villas are in. Bangalore-based Nitesh Estates JGC Corporation and the Mizuho Corporate has recently launched a high-end villa project in Bank – both Japanese entities – are working on Goa - Nitesh Fisher Island, their sixth project an ‘integrated township project', an industrial launched this year. The size of the project is and residential township for the Japanese. The pegged Rs 300 crore. Spread over 9.3 acres township is coming up on a 1,450-acre piece of and comprising 36 high-end villas, it is expected land on the Old Mahabalipuram Road, some 50 to be completed in 2 to 3 years. The villas are km south of Chennai. priced between Rs 8 to Rs 10 crore. Chennai has around 240 Japanese companies. PEARLS INFRASTRUCTURE Shinya Fujii, Director General, Japan External The Tribune Trade Organisation, Chennai, receives enquiries from at least 30 Japanese companies every day, Pearls Infrastructure Projects announced the seeking information to set up shop in Tamil launch of its new project in Sector 100, Mohali. Nadu.

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PRIMEX LAUNCHES GREEN seat multiplexes, N Ravichandran, Chairman of RESIDENTIAL PROJECT NEAR IT HUB TVH (True Value Homes), said. Financial Chronicle The residential Vista Heights would be built in Primex Infrastructure has launched an two phases accommodating about 800 environment-friendly residential project ‘Verterra’ apartments, with one, two, three and four at Mugalivakkam, Porur, an emerging IT hub in Bedrooms, ranging from 500 square feet to western Chennai. The Rs 125-crore project, between 2500 to 4000 square feet respectively, spread over 4.2 acres, has schools, markets, he said. There would 40 villas in four and half hospitals and hotels in the vicinity. Primex has acres, he said. The township project is spread an experience of over two decades in residential over 18 lakh square feet, including seven lakh projects. square feet of both Mall and commercial buildings, which would be completed in five GODREJ PROPERTIES LTD LAUNCHES years, he said. SECOND PHASE OF GODREJ FRONTIER Hindustan Times

Godrej Properties Ltd. (GPL), the real estate development arm of the Godrej Group, recently announced that it has opened bookings for the second phase of Godrej Frontier, its residential project in Gurgaon. The company claims that it has sold over 200 apartments, translating to over 480,000 sq ft (44,593 sq m), in the first phase within two days of its launch in October this year. Located in Sector 80 of Gurgaon, this is the company's first residential project in northern India and the company will develop approximately 1.05 million sq ft (97,548 sq m) on 9 acres of land.

TVH LAUNCHES RS 800 CRORE RESIDENTIAL TOWNSHIP, INTEGRATED TOWNSHIP The Economic Times

Leading property development firm TVH launched its Rs 800 crore multifaceted residential project and integrated township in the city. The Aurora Township offers exclusive premium villas, high rise residences, largest mall with shopping centres and eight screen 1600-

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About Avendus Capital

Avendus uses its unique domain and industry- Avendus Capital (Avendus) is a leading financial focused approach in businesses such as M&A services firm with a strong transaction record and advisory, private placements for growing companies, established relationships with companies and structured finance advisory, equity capital markets, investors. Avendus has been consistently ranked institutional equities, alternative asset management among the top-five corporate finance advisors in India. and wealth management. Avendus has emerged as The firm is also a leading syndicator of private equity the advisor of choice for cross-border M&A deals—23 deals in India. Indo-US and Indo-Europe deals—in the past three

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Mumbai: IL&FS Financial Centre, 5th Floor, Bandra-Kurla Complex, Bandra (East), Mumbai 400 051 Tel: +91 22 6648 0050 Delhi: Suite 22A/B, The Aman Resort, Lodhi Road, New Delhi - 110003, Tel: +91 11 45357500 Bangalore: The Millenia Tower, A-10th Floor, No. 1 & 2 Murphy Road, Ulsoor, Bangalore 560 008 Tel: +91 80 6648 3600 USA: 100 Park Avenue, 16th Floor, New York 10017, Tel: +1 212 351 5066 London: 32 Brook Street, London W1K 5DL, Tel: +44 20 7647 7700 23