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Monday, May 2, 2016

URBAN INFRASTRUCTURE TO GET Rs 275 CR - Kanakia Buys Powai Land Development Rights for Rs 400 crore

URBAN INFRASTRUCTURE TO GET Rs 275 CR - Kanakia Buys Powai Land Development Rights for Rs 400 crore
Kailash Babar

Skyline sells rights to provide exit to RIL-backed Urban Infra Venture Cap
Realty developer Kanakia Group has bought development rights for 0.5 million sq ft on a Powai land . 400 crore. Skyline, parcel for ` the local developer, which has sold these rights, will be providing an exit route to Reliance Industries-backed fund Urban Infrastructure Venture Capital, said two persons familiar with the development.Urban Infrastructure had in vested in this special purpose . 275 vehicle in 2011and will get ` crore through this transaction. “First part of this transaction has been concluded with the agreement between Kanakia Group and Skyline being inked a week ago. The second part of the transaction, relating to the Urban Infrastructure's proposed exit, is being discussed with promoters,“ said one of the persons mentioned above.
The deal will be financed by Kanakia Group through its internal accruals and the first tranche of the payment has already been made, he said.
Kanakia Group and Skyline Group declined to comment on the story, while an email query to Urban Infrastructure Venture Capital remained unanswered till press time.
Skyline Group had planned a total development of 1.5 million sq ft on the land parcel spread across 12 acres close to Hiranandani Hospital in Powai. Kanakia will now undertake around one-third of this total planned development, while the rest will be with Skyline.The fund Urban Infrastructure Venture Capital will exit the project completely.
As per the agreement, both Kanakia and Skyline will manage their approvals separately apart from marketing and execution of the project.Kanakia has already started the process of getting development permissions and has submitted its plans to the civic authority . The developer is looking to launch the project in the next six months.Currently , Kanakia Group is developing total 3.5 million sq ft of area through seven projects spread across Mumbai.
At present, residential property prices in the vicinity range between ` . 16,000 and . 17,000 per sq ft.` With Powai gaining importance as a startup hub, realty developers are eyeing this zone as a high-potential residential micro market.

Reduce home prices to attract more buyers, Raghuram Rajan tells realtors

Posted: 26 Apr 2016 01:42 AM PDT
raghuram rajan rbi governer
By Accommodation Times News Service
Rajan’s remarks also come against the backdrop of low demand for housing projects leaving developers with unsold inventories.
Having cut the interest rates, RBI Governor Raghuram Rajan put the onus on real estate developers, asking them to reduce prices to encourage more people to buy properties.
Rajan’s remarks also come against the backdrop of low demand for housing projects leaving developers with unsold inventories. “I am hopeful that as interest rates come down, there will be more credit and buying. And I am also hopeful that prices adjust in a way that encourage people to buy,” Rajan said while delivering the Y B Chavan Memorial Lecture here.
The Reserve Bank of India (RBI) has lowered rates by 1.5 per cent cumulatively since January last year and earlier this month the policy rate was cut by 0.25 per cent to 6.5 per cent — its lowest level in more than five years.
More than half of the rate cuts have been passed on by the banks to consumers.
“My sense is that there is a little bit of everything that needs to happen” for the revival in the real estate sector, Rajan said. “There is an issue of certainly how they see the housing market and how they see prices. There has to be an adjustment so that more people want to go and buy,” he noted.
According to Rajan, apart from interest rates, measures such as including affordable housing loans under the priority sector lending requirements makes him confident to say that worries on the financing side are taken care of. When it comes to finance to developers, Rajan pitched for more transparency on the borrower’s side.
“We need action on real side (as) also on transparency on land acquisition, on transparency on construction and on sales,” he emphasized.
Further, Rajan said more transparency in such matters would enable financiers to better track flow of funds, which project was being funded by who and who all were the other financiers.
Construction of every kind, including houses and roads, is a big source of growth especially for a developing economy like ours, he added.33

Ensure fire safety before buying a property

Ensure fire safety before buying a property

Fire breakouts in buildings can be disastrous. Apart from posing a risk to the inhabitants of the buildings, it is a threat to the neighbouring surroundings as well. Today, every city has new residential projects within its limits and also towards its peripheries. As a buyer, before investing in any property, you should run a quick check for building safety and if possible, identify the safety gaps if any.
Safety codes to check
According to the National Building Code (NBC), restrictions on construction of buildings in each fire zone, occupancy rates, types of building construction according to fire resistance of the structural and non-structural components and other restrictions and requirements necessary to minimise danger to life from fire, smoke, fumes or panic before the buildings can be evacuated.
If you are planning on buying a new property or an existing one, do look out for the following provisions to ensure safety of your family members and yourself:
  • Automatic Sprinkler System
Ensure new projects have this system of water pipes fitted with sprinkler heads at suitable intervals and heights and designed to actuate automatically, control and extinguish a fire by discharge of water.
  • Automatic Fire Detection System
Fire Alarm system comprising components for automatically detecting a fire, initiating an alarm of fire and initiating other actions as appropriate.
  • Non-combustible materials used in construction
A non-combustible material is a substance that will not ignite, burn, support combustion, or release flammable vapours when subject to fire or heat. Some of them include portland cement concrete, gypsum concrete, or magnesite concrete having aggregates of sand, gravel, expanded vermiculite, expanded or vesicular slags, diatomaceous silica, perlite, or pumice. Ask the developer before making a purchase.
  • Open spaces
Sufficient open space around residential buildings is essential to facilitate free movement and operation of Fire Service vehicles. For example, if the building’s height is above 9.5 up to 12 meters, then the minimum open space around the building should be 4.5 meters.
  • Car parking
If the open space is more than 12 meters, the provision for car parking can be done in the open spaces at the periphery of the courtyard leaving the 6 meter motorable road.
  • Staircase
Every high rise building should have minimum two staircases with their width should be 1 meter. The width of fire escape should be minimum 0.75 meter. Staircase also should not be extended to basement to prevent smoke, heat & gases as smoke, heat 7 gases can be travel to upper floors. Access to the basement from the ground should be through a separate staircase, which is not connected to main staircase.
  • Service ducts
All the services ducts should have to be enclosed by walls of at least 2 hour fire resistance & should have to be sealed at every alternate floor with non-combustible materials having at least 2 hour fire resistance. The sealing at floor level is to prevent travel of smoke & fire to the upper floors through the ducts.
* As per NBC and IIEF
Here’s a quick look at some more measures which can help you attain safety from fire.
building safety checklist
Accidents are beyond control but you can undertake precautions to avoid them. Insist on knowing the details of the project before buying a property. Do your bit to ensure the safety of your family.
Namrata Ekka is the part of Content and Advisory team at Magicbricks.

Naredco asks members to fulfill promises made to home buyers

Naredco asks members to fulfill promises made to home buyers

Editor | April 28, 2016 @ 12:41 PM
Real estate industry body National Real Estate Development Council (Naredco) has appealed to all its members to fulfill commitments their firms have made to home buyers in their various projects in a transparent manner.

Parveen Jain, the president of Naredco asked developers, whose projects are delayed and where buyers are agitating, to sit with buyers and workout a time frame for delivery and fulfill commitments made to them. 
"It's a confidence crisis for us. We have to win over the confidence of buyers," he said.

Taking the example of Amrapali and Supertech, Jain has asked all NAREDCO members to adhere to building bye laws, rules and regulations in a fair and transparent manner to gain the confidence of home buyers.

Jain said that though Parliament has passed the Real Estate (Regulation and Development) Act and though it's still to be notified and implemented, builders must stand committed to the written promises made to home buyers.

"Once the Act is implemented as designed, things would be easier for builders as well as developers. We have to gear up with changing times," he said.

"A customer can no more be taken for granted. A customer is king for us and will continue to be the king in our scheme of things," he said. 
"Some financial discipline would help in timely completion of the projects and timely handing over possession to the buyers," Jain said.

He, however, appealed to the government to sort out the issues related to single window clearances at the earliest, so that when the Act is implemented, developers do not have to run around for project clearances. 
Ravi Teja Sharma, Economic Times, Delhi/NC

Raheja Corp to build two IT parks in Pune & Mumbai

Raheja Corp to build two IT parks in Pune & Mumbai

This will add to the existing portfolio of the company, which is India’s second largest developer of business parks that span completely leased 20 million sq ft office space across Mumbai, Navi Mumbai, Hyderabad and PuneKailash Babar  |  ET Bureau  |  28 April 2016, 7:55 AM IST
MUMBAI: K Raheja Corp is working on plans to build two infotech parks totalling 6 million sq ft leasable space in Mumbai and Pune over the next two years.

This will add to the existing portfolio of the company, which is India's second largest developer of business parks that span completely leased 20 million sq ft office space across Mumbai, Navi Mumbai, Hyderabad and Pune.

Its managing director Vinod Rohira told ET in an exclusive interaction that under this plan, K Raheja Corp has entered into an agreement to acquire a 30-acre land parcel in Pune from builder Gera Developers. It is planning to develop an IT park with total 3.5 million sq ft leasable space on this plot, he said.

"We are taking aggressive position to build major supply of IT business parks across Mumbai and Pune," Rohira said. "Our endeavour is to make the market supply-driven and to maintain rents economical belowRs 50 sq ft mark to attract business," he said.

In December 2015, the company had executed one of the biggest land transactions in Mumbai Metropolitan Region, when it acquired a 30-acre land parcel in Ghansoli locality for Rs 210 crore from US-based specialty chemicals company Cabot Corporation.

The second proposed IT park will be developed on this land parcel. Last year, the company had also bought out JP Morgan's 49% stake in the joint venture Airoli Gigaplex commercial project in Navi Mumbai. With this transaction, it now has complete control over the 4.8 mn sq ft asset. The developer has branded its IT parks as Mindspace and Commerzone, with existing developments in Pune, Mumbai's Malad suburb, Airoli and Juinagar in Navi Mumbai, and Madhapur in Hyderabad. Both the proposed IT parks on recently acquired land parcels in Mumbai and Pune will be developed under the brand Commerzone.

"We expect the new IT policy of Maharashtra will prove to be a boost to further attracting and strengthening the state's position as fast growing IT destination in the country. Absorption is robust now and will continue to be this way.

With a large commercial portfolio, K Raheja Corp is seen as a candidate for listing its real investment trust in India. The company has developed more than 30 million sq feet of commercial space across western and southern parts of the country.

In 1999-2000, K Raheja Corp developed the first organised suburban business park, Mindsapce in Mumbai's Malad locality.

The company has so far developed 7 million sq ft space in all including IT parks, commercial, residential and retail projects in this project spread over 110 acres. Some of the key tenants currently operating out of the developer's IT parks are Accenture, Cognizant, L&T Infotech, Syntel, Capgemini and Wipro.

Most South Mumbai projects are for redevelopment; empty land a rarity: NM Gattu, DB Realty

Most South Mumbai projects are for redevelopment; empty land a rarity: NM Gattu, DB Realty

In an interview with ET Now, NM Gattu, CFO, DB Realty, shares his views on the FSI scene in Mumbai. Edited excerpts:ET Now  |  28 April 2016, 5:30 PM IST
ET Now: Has the FSI been increased in Greater Mumbai or is this just a BMC proposal as of now?

NM Gattu: I think this is a proposal. Once the circular is issued and the GO is issued, or the guidelines are published, then it will come into force.

ET Now: Do you think there is an economic case for FSI hike?

NM Gattu: Most of the South Mumbai side projects are all redevelopment projects, empty land is very rare these days. However, what they are trying to do is to the development in the entire city of Mumbai.

The seven island concept has gone long back, so why is it 1.33 on the city side and why is it 2 on the suburb. This was an argument which has been there for quite some time so now. I think it is getting ironed out and neutralised.

ET Now: What is the current FSI and what is the proposal entailing?

NM Gattu: 5 FSI is something for specific projects. If you look at the good old projects like Oberoi Hotel and Taj Palace Hotel, these are all the projects which had these discretionary FSI that has been given and granted in the good old age itself.

Even for our India Tower project we had got 6.29 FSI from the Supreme Court. These are the all the discretionary powers with the government and now they are trying to iron out and say for each of the sectors these are all the FSI areas.

In any case there will be inbuilt checks and balances like the height restriction in some areas, the setback, the open space deficiency. All those implied only the large plots might benefit out of this which in any case the township concept is being introduced.