Sunday, January 24, 2021

Ticker Tape - Construction

Parliament New Building Foundation today: PM Narendra Modi lays foundation stone


The new Lower House or Lok Sabha will be three times of the existing size and the new Upper House or Rajya Sabha will be substantially bigger.


The new Parliament building will be modern, state-of-the-art, and energy-efficient, with highly non-obtrusive security facilities to be built as a triangular-shaped building.


Prime Minister Narendra Modi laid the foundation stone of the New Parliament Building in New Delhi recently. The new building will be located at Sansad Marg in the national capital. As an intrinsic part of the Central government’s ‘Aatmanirbhar Bharat’ vision, the new building will match the needs and aspirations of ‘New India’ in the 75th anniversary of independence in 2022.




L&T Construction receives contracts from prestigious clients


The construction arm of L&T has secured orders from prestigious clients for two of its businesses.


The Building & Factories’ (B&F) Residential Business has received an add-on order from a reputed developer for the core & shell works of two wings of a tower in addition to the non-tower area works.


The business has also secured a Design & Build order from a reputed Client to construct a Multispecialty hospital at Nagpur. To be executed on a fast track basis, the scope of the project includes Structure, Finishes, MEP, and Medical Gas Pipeline system to be done entirely in structural steel, including the core.


The IT & office space business has received an order from a reputed client for the civil shell & core works of a Mixed Used Building at Bengaluru. The scope of work includes a tower of 9.06 lakh Sqft to be completed in a period of 18 months.


L&T Construction’s Power Transmission & Distribution Business continued its winning spree by securing another package to provide Electrical & Mechanical Systems for tunnels in the Udhampur Srinagar Baramulla rail link project. The scope of the package involves 33kV & 11kV HT power cable network, GIS substation, DG sets, tunnel lighting, ventilation & firefighting systems and SCADA system.


Another underground cabling package has been secured to improve the reliability of power supply in a South Indian city.


The business has also secured add-on orders from its existing customers.




Mumbai sees 67% jump in property registrations in November


  • A total of 9,301 units were registered in the metropolitan last month
  • The augmented sales have been attributed to a stamp duty cut of 300 bps (basis points)

Riding on the back of stamp duty cuts and the festive season, the residential sector in Mumbai has recorded the highest-ever registrations in the month of November over the last nine years. A total of 9,301 units were registered in the metropolitan last month.


The figures show a 67% year-on-year (YoY) rise over same month last year, according to Knight Frank India, a leading international property consultancy.


This strong growth of 17% month-on-month (MoM) in November 2020 comes after a robust 42% MoM growth during October 2020 and massive 112% MoM growth during September 2020, when sales of residential property started to show an upward trend after months of slump due to the Covid-19 induced lockdown.


The augmented sales have been attributed to a stamp duty cut of 300 bps (basis points). Most developers have offered to absorb the remaining 200 bps which is resulting in huge savings for the homebuyer. This is in addition to the festive season of Diwali and reduction of home loan rate to historic lows.


Other measures by developers such as deferred payment plans, indirect discounts and offers to negotiate on the final price of the apartment have helped entice homebuyers.


Mumbai has witnessed a cumulative residential sale of 22,827 units after the stamp duty cut during September-November 2020. The monthly run rate in this period after the stamp duty cut is approximately 135% or 1.35 times the monthly average of 2019.


It is important to note that even after the stamp duty cut in September 2020, the state Government’s revenue collections from stamp duty have increased to Rs.2,328 million in Oct 2020 and Rs.2,879 million in November 2020.




Shapoorji Pallonji’s Joyville to invest Rs.700 cr to develop 10-acre Pune residential project


Realty developer Shapoorji Pallonji Real Estate’s mid-income housing subsidiary Joyville Shapoorji Housing, is planning to invest Rs.700 crore to develop its third residential project in Pune. The project spread over 10 acres within Pune’s Hinjewadi IT Park will be Joyville’s sixth project in India.


Joyville is a $200 million platform by Shapoorji Pallonji, ADB, IFC and Actis to develop aspirational housing projects in India. The platform has so far invested Rs.870 crore in five projects across Mumbai Metropolitan Region (MMR), Pune, Gurgaon and Kolkata.


Sensorium, the company’s third project in Pune will have a total inventory of over 1,100 apartments with configuration of 2 and 3 bedrooms priced above Rs.64.4 lakh.


The company had earlier launched two projects in Pune--Joyville Hadapsar Annexe and Joyville Hinjawadi. Shapoorji Pallonji Real Estate has a development pipeline of over 80 million sq. ft and is looking to double its top line in the next 2 to 3years.


The real estate arm is planning to launch new projects and new phases in its existing projects in MMR, Pune, Gurugram, Bangalore and Kolkata by this fiscal year.




L&T Seawoods Residences - North Towers, Elicits Strong Response from Homebuyers


The real estate business of Larsen & Toubro has launched North Towers at its unique residential project - Seawoods Residences in Navi Mumbai. The project has drawn strong interest from homebuyers with over 300 expression of interest received within the first two weeks. This shows that the popularity and momentum of last year continues when 500 apartments of this project were sold out in a record time. L&T Seawoods Residences is part of India’s first Transit-Oriented Development (TOD)-Seawoods Grand Central. Conceptualised on the lines of the world’s best TODs, this is now the new epicenter of Navi Mumbai. The revamped railway station, Mumbai’s most popular Mall and the large office spaces on the campus, have been instrumental in drawing customers to Seawoods Residences.


This residential project is just a few steps away from Seawoods Grand Central Mall and the railway station and is in close vicinity of the upcoming Navi Mumbai International Airport. With an area of 10 acres, it is the premium most development of Navi Mumbai. The prospective residents will enjoy a life within a gated community here that has all facilities including a lavish bi-storeyed 20,000 sq ft state-of-the-art clubhouse. Rare to find in this location, the project consists of around 3.5-acre lush green landscaped garden on the podium level, with a jogging track and an open-air amphitheater.


The landscape design of Seawoods Residences ensures optimal utilisation of open spaces and greenery. A global architectural and consulting firm, Woods Bagot, Hong Kong, drew up the architectural concept of the project, while the landscape has been designed by international landscape architects - WAHO.


The popularity of LOT Seawoods Residences proves that notwithstanding the tough business environment, brands that have the right product mix, are committed to delivery timelines, backed by a brand name that invokes customer’s goodwill will always be a market leader.




Godrej Properties purchases land parcel in Whitefield, Bangalore for new project


The Mumbai-based real estate developer Godrej Properties Ltd. (GPL) one of India’s leading real estate developers, announced that it has entered into an outright transaction to purchase a well located land parcel in Whitefield, Bangalore.


Spread across approximately 18 acres, this project will offer 0.22 million square meters (2.4 million square feet) of saleable area comprising primarily of residential apartments of various configurations.


Whitefield is the largest commercial and residential real estate market in Bangalore and this land parcel is situated near the proposed metro line connecting Whitefield to Hopefarm Junction. The site is well located and offers an extremely well developed social and civic infrastructure with multiple schools, hospitals, retail, residential, and commercial spaces in close proximity.




Sobha to build new housing project in Gurgaon at Rs.1,000 cr


Sobha Ltd has tied up with another realtor Chintels India to develop a group housing project comprising of 1,700 flats in Gurgaon at an estimated cost of Rs.1,000 crore.The 39-acre project, which is expected to be launched by end of next month, would be developed in phases over the next 6-7 years. Bengaluru-based Sobha is already developing a luxury villa project named ‘International City’ on a 150-acre land parcel near Dwarka Expressway in a tie-up with Chintels group and QVC Realty. Both the partners would be sharing revenues from this project, which is located adjacent to the its existing villas. The total saleable area in this project would be over 3 million sq ft. The project would fall in luxury category. Sobha is developing about 40 million sq ft of projects across 9 cities. Gurgaon-based Chintels has a land bank of about 500 acre in the NCR region.




Ashwin Sheth Group, Sethi Group ink JV to develop 1 million sqft mall in Nagpur


Realty developer Ashwin Sheth Group has entered into a joint venture with Nagpur-based Sethi Group to develop 1 million sq ft mall, Viviana Nagpur in the city’s south western region near Pratap Nagar.The entire project involves an investment of Rs.650 crore, which includes land’s valuation and construction cost. A Memorandum of Understanding has been inked between both the real estate groups and a formal agreement is expected to be signed in a month.


The land parcel is owned by Sethi Group on which other than various retail sub-segments, there will also be substantial space dedicated for entertainment and food & beverage sections as it is located in an up-market commercial street in the western region of Nagpur.




Doka partners with AT-PAC to offer scaffolding as well as formwork


A strategic partnership with AT-PAC combines the global presence of Doka with longstanding scaffolding experience.


Doka now offers formwork solutions and scaffolding. But this is about more than just products. Well thought-out solutions and services – from planning and engineering to trainings – ensure transparency in complex construction projects, optimization of material flow and cost efficiency.


Doka’s shareholding in the American scaffolding manufacturer AT-PAC creates a strong global unit that combines international sales strength with decade-long know-how in scaffolding. In the future, Doka will act as a full supplier of formwork solutions and scaffolding – in the sales, as well as in the rental segment.




Ultratech to invest Rs.5,477 crore to add 12.8 MT capacity


UltraTech Cement, the country’s largest cement maker, recently announced a Rs.5,477-crore investment to add 12.8 million tonnes (MT) capacity, taking its overall output to over 136 MT per annum. In a statement, the company said its board in a meeting approved capacity expansion to the tune of 12.8 MT per annum with a mix of brown-field and green-field expansion. Upon completion of the latest round of expansion, Ultratech’s capacity will grow to 136.25 MT per annum, reinforcing its position as the third-largest cement company in the world, outside of China. The additional capacity will be created in the fast-growing markets of the eastern, central and northern regions. This expansion includes the existing approval for cement plant at Pali in Rajasthan, in addition to the existing 6.7 MT per annum capacity expansion currently underway in UP, Odisha, Bihar and Bengal.


The expansion will get commissioned by FY22, in a phased manner. The capital outlay, given the current economic backdrop, is a marker of UltraTech’s ascent from being the country’s No.1 cement player to a national champion. The cement industry has been witnessing healthy volumes after the relaxation in lockdowns, on the back of the government’s thrust on infrastructure, underlying demand from the rural economy and individual home builders, he added. “Given our pan-India presence which will be further strengthened by the capacity expansion, we will be well positioned to support the rising demand for cement in the country. Commercial production from the new capacities is expected to go on stream in a phased manner by the final quarter of FY23, Birla said, adding that the capacity addition will not impact the ongoing deleveraging programme to make UltraTech debt free by the time the expansion programme is completed.




Shiva Cement to invest over Rs.1,500 crore in new clinker project at Odisha


Shiva Cement Limited, the Odisha-based cement company, and a subsidiary of JSW Cement Ltd, India’s leading producer of green cement, will invest over Rs.1,500 crore in a 1.36 million tonne clinker unit project to be established in Sundergarh district of Odisha. It will fund this investment through a combination of long-term debt and equity. This project also includes setting up of a 1 MTPA grinding unit, 8 MW Waste heat recovery power plant, 4 MTPA crushing plants at its Dolomite and Limestone mines, 10 Km long Overland Belt Conveyor to transport limestone from the Mines to the manufacturing plant and own railway siding with 12 Km long railway track upto Sagra station to ensure seamless transportation of finished goods to the market. The design of the plant incorporates best technologies and will be most-modern and energy-efficient with waste heat recovery and co-processing unit using alternative fuels.


Shiva Cement has already received some of the Regulatory and statutory approvals and is on track to obtain other necessary clearances. Once commissioned, this clinker unit will service JSW Cement’s manufacturing facilities across East Region and is expected to create around 500 direct & indirect job opportunities. Consequently, Shiva Cement is expected to become a strategic hub for JSW Cement’s operations in East region of India.


Shiva Cement’s clinker project contracts have been awarded to Thyssenkrupp Industries India and Larsen & Toubro.

  1. Thyssenkrupp has been contracted to design and supply a new state of the art 4,000 tonnes per day capacity Clinkerization unit
  2. Larsen & Toubro has been awarded the contract for Civil, Mechanical & Refractory erection work of the new clinker unit at Shiva Cement.


For JSW Cement, the new clinker unit being established by Shiva Cement is part of its strategic roadmap to achieve 25 MTPA capacity by 2025, with a special focus on scaling up its presence in the Eastern region of India. JSW Cement remains focused on its goal to become a leading green cement player in India in terms of EBITDA per tonne. Thus, all business initiatives and investments are driven to achieve the targeted financial, production and sales growth position and list the company publicly in the next few years.



Tata Group’s real estate arm plans to expand commercial portfolio to over 20 million sqft


The real estate development arm of Tata Group is looking to expand the size of its commercial portfolio to over 20 mn from current ready and fully leased 6.2 million sq. ft. through new developments and acquisitions. The firm is actively negotiating land deals in the southern office market and expects it to contribute a substantial percentage to its overall commercial portfolio in the next 3-5 years.The company is exploring both organic and inorganic opportunities to scale up its business.


The firm that is planning to list its Real Estate Investment Trust (REIT) with around 20-million-sq-ft of commercial assets in the next couple of years, expects commercial real estate to contribute about 60 per cent of the overall portfolio—under the Intellion brand—from the current 30 per cent.Commercial real estate market has witnessed continued investor interest post the lifting of nationwide lockdown with Bangalore leading the deal.




Delhi ranks 27th, Mumbai 33rd globally as fastest-growing prime residential market: Report


India’s national capital has been ranked 27th, while Mumbai and Bengaluru were placed at the 33rd and 34th positions respectively in a global index that measures annual price appreciation of luxury residential properties, according to a Knight Frank report. Auckland in the Australasia region topped the index with 12.9 per cent price appreciation in the July-September quarter, compared to the same period last year.


Manila and Shenzhen were at 2nd and 3rd positions respectively with 10.2 per cent and 8.9 per cent price rise.


In the Q2 (April-June) report, Bengaluru and Delhi were at 26th and 27th positions, while Mumbai was ranked at the 32nd position. Mumbai was ranked 33rd with 1.3 per cent fall in annual price. The city also saw a decline of 0.7 per cent in prices compared to the June quarter. Bengaluru was ranked at the 34th place with a decline of 1.4 per cent in price year-on-year. The city registered a price decline of 1.5 per cent from the June quarter.

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