14 December 2018

Table of Contents for Ticker Tape -Construction





Ticker Tape: Construction

 

Sobha to launch affordable housing projects

 

Real estate developer Sobha is all set to launch affordable housing projects each in North Bangalore and GIFT city (Gujarat). Moreover, it also plans to launch other projects in Bangalore, Thrissur, Pune, and Cochin. Further, the company claimed that during the second quarter, it achieved new sales volume of 10lakh sq.ft. aggregating to Rs 740.8cr with an average realization of Rs 7,181 per sq.ft. Sales volume was also up by 7 per cent compared to that in the preceding quarter and up 19 per cent YOY. Meanwhile, the sales volume achieved during the second quarter was the highest in the past 5 years. This quarter, the company also launched Sobha Lake Garden residential project in Bangalore with a saleable area of 8lakh sq.ft.

 

 

 

Qualcomm plans to set up campus in Hyderabad—its largest outside US

 

Tech major Qualcomm Saturday announced plans to set up its largest campus outside the U.S. here. The company’s officials met Minister for IT in the Caretaker government K T Rama Rao Saturday to discuss their growth plans in the city. “Qualcomm will be investing $400 million (Rs 3,000 crore) to set up their campus in Hyderabad, Telangana. This is one of the largest investment by a marquee company after the formation of the state,” it said in a release. Phase-1 of the project would include a built up space of 1.7 million square feet, housing about 10,000 employees, it said. The release quoted Qualcomm officials as saying that the company was playing a key role in driving the wireless revolution by making mobile communications more accessible and affordable.

 

The proposed facility would be its largest campus globally after its San Diego headquarters and the $400 million investment by Qualcomm in Hyderabad would be its largest globally, the release said.

 

 

 

MoUs worth Rs 70,000 crore signed at Uttarakhand Investors Summit

 

Adani Group has announced an investment of Rs 6,500 crore in Uttarakhand, while Mahindra Group plans to invest Rs 600 crore. Amul has also announced plans to assist farmers in the State for higher milk production. At the Uttarakhand Investors Summit that began here on Sunday, which was inaugurated by Prime Minister Narendra Modi, MoUs involving an investment of `70,000 crore have been signed. The summit saw the presence of leading industrial groups such as Reliance Industries, Mahindra Group, ITC, JSW Group, Adani Group and Patanjali, among others. Mahindra set up an automotive plant in Haridwar in 2006, which has so far produced 16-lakh vehicles, and is expected to produce 1.5-lakh vehicles during the current fiscal. The group also produces 1,000 electric three-wheelers every month. It has employed more than 10,000 people in various businesses, and now plans to raise investment in the next 2-3 years.

 

 

Trent to acquire Lodha office space for Rs 200 crore

 

In one of the largest office deals this year, Tata group’s retail arm Trent Ltd is close to buying around 120,000 sq. ft of space at a Lodha group property coming up at Wadala in central Mumbai for over Rs 600 crore. The 30-storey commercial building is part of a mixed-used development called New Cuff Parade that comprises 10 residential buildings and two commercial towers.

 

Spokespersons for Trent and Lodha Developers Ltd declined to comment on the development. Trent operates some of India’s largest retail stores including Westside, Landmark and Star Bazaar. It is planning to use the new space, which is expected to be ready by January, to expand its office. At present, its corporate office is located at Bandra Kurla Complex (BKC).

 

 

NBCC to float tender for Amrapali projects

 

Following the recent Supreme Court verdict, NBCC plans to start work on some of the private developers’ projects in the National Capital Region. “There are some projects of private developers in NCR where homebuyers are suffering. So, with the Supreme Court order in the Amrapali project, the company will float the tender in the next 15 days,” said Anoop Kumar Mittal, Chairman and Managing Director, NBCC. He added that the company will work as a project management consultant. Since various projects of Amrapali are in different stages, the company has sought three months to six years of time from the apex court. Mittal said the order book of the company is currently around Rs 80,000 crore and by the end of the year, it plans to increase the same to Rs 1,00,000 crore.

 

 

JSW Steel’s Vijayanagar Manufacturing Unit Bags Deming Prize

 

JSW Steel, India’s leading steel company & flagship business of the $13 billion JSW Group, on Wednesday announced that it has been awarded the Deming Prize for its Vijayanagar Works manufacturing unit. Commenting on this achievement, Seshagiri Rao, Joint Managing Director of JSW Steel and Group CFO, said, “JSW Steel is privileged to be honoured with the Deming Prize for our Quality Management at Vijayanagar Works steel plant. It is testimony of JSW Steel’s uncompromising commitment to the TQM benchmarks we have set & achieved over the last several years. This coveted award complements our strong partnership with Original Equipment Manufacturers many of whom are Deming prize winners themselves. Our journey over the years has been exciting and this award is a tremendous inspiration for everyone at JSW Steel to move forward with the winning spirit and achieve new heights.”

 

 

Puravankara Limited’s associate firm to develop its first commercial project in India

 

Puravankara Limited’s associate firm will develop its first commercial development in India for which it has entered into agreements to acquire a prime 7.635 acres site in Yeshwantpur, Bengaluru, from Metro Cash & Carry India Private Limited (MCCIN). The total consideration is approximately `405 crore. Keppel Puravankara Development Private Limited (KPDL), an associate of Puravankara Limited, a joint venture between Puravankara Limited and Singapore- based Keppel Land, has entered into agreements to acquire a prime 7.635 acres site in Yeshwantpur, Bangalore, from Metro Cash & Carry India Private Limited (MCCIN). The total consideration includes the cost of approximately `80 crore for KDPL to construct a 160,000 sq. ft. retail-cum-office facility on the land, which will be handed over to MCCIN, the company said in a statement. The Grade A office development will be managed by KPDL upon completion.

 

 

 

French ambassador to India hails Smart City Mission's CITIIS programme

 

The CITIIS programme will be implemented by the Ministry of Housing and Urban Affairs and the National Institute for Urban Affairs. The CITIIS programme under the country's Smart Cities Mission provides a "strong platform" for both India and France to achieve their shared vision of a sustainable future and a more equal and just society through collaboration, French Ambassador to India Alexandre Ziegler has said.

 

Under the CITIIS (Cities Investment To Innovate, Integrate and Sustain) challenge programme, cities are encouraged to propose projects in areas of sustainable mobility, urban e-governance and information and communications technology (ICT), public open spaces and social and organisational innovation for low-income settlements. Ziegler was speaking here at a two-day preparatory workshop held for the 100 cities shortlisted to become the country's next Smart Cities.

 

The event, organised by the National Institute for Urban Affairs (NIUA) along with the French Development Agency (AFD), was held at the India Habitat Centre from September 25-26.

 

When the Smart Cities Mission was launched in 2015, a competitive, challenge process was used to select the 100 smart cities.

 

 

 

Vatika group to invest Rs 8000 cr on township project at Gurugram

 

Realty firm Vatika group said today the company will invest about Rs 8,000 crore to develop a 224-acre township project in Gurugram over the next seven years. The company will develop 15,000 housing units and 6.5 million sq ft of commercial space in this township project 'Vatika India NEXT2'. The units to be sold in this township project would meet area norms laid under the Pradhan Mantri Awas Yojana so that prospective middle income group (MIG) buyers become eligible for incentives under Credit Linked Subsidy Scheme (CLSS). The investment to develop this entire township would be around `8,000 crore which will be funded through equity, he said. Vatika group is selling flats in a price range of Rs 7,000-10,000 per sq ft and plots at over Rs 50,000 per sq yard. Vatika Group is a leading real estate developer in the National Capital Region. The group is engaged in the business of real estate, hospitality, education, business centres and facilities management.

 

 

 

Realty to be $1-trillion industry by 2030

 

Indian real estate will be a trillion-dollar (`72 lakh crore) industry by 2030, the third largest globally, propelled by affordable housing, co-working spaces and a transparent regulatory environment, a KPMG report said. From $120 billion in 2017, the sector will grow to $650 billion by 2025. During this period, the sector’s contribution to the GDP will go up from about 7 to 13 per cent, said the report released at Naredco and APREA’s Real Estate & Infrastructure Investors’ Summit in Mumbai. The sector is the third largest employer after agriculture and manufacturing in the country and currently employs over 50 million people. As per the National Skill Development Council, real estate and construction is expected to necessitate demand for over 66 million people by 2022.

 

The report pointed out that $4 billion has been invested by institutional investors in 2018 so far with the average deal size crossing $150-million mark, the highest in the last five years. The average deal size also tripled to $157 million in 2018, compared to $47 million in 2016.

 

 

 

Wienerberger India sources 92 per cent power from renewables

 

Wienerberger India’s robotic plant producing over 70,000 large format hollow blocks each day for the fast-growing construction industry has moved to sustainable electricity sources such as wind and solar energy. Since 2017, the factory was successful in sourcing over 90 per cent of its electricity requirement from solar and wind farms. With hi-tech robotics aiding the production process of over 70,000 large format blocks, which is equivalent to 6,30,000 regular bricks daily, the need for electricity is substantial.

 

 

 

IFC invests $100 million in Piramal-Bain joint venture

 

International Finance Corporation NSE 0.00 per cent (IFC), the investing arm of the World Bank, has invested $100 million in India Resurgence Fund - a joint venture between PiramalNSE 0.05 per cent Enterprises Limited and Bain Capital. The total fund size is $300 million to be invested capital in the form of debt and equity in distressed assets and special situations in India. Piramal and Bain have invested in $100 million each to invest in businesses that require balance sheet restructuring with a focus on debt restructuring in organizations with strong growth prospects linked to infrastructure and consumption needs. The fund is looking to buy assets in cement, steel and power. It is also looking to invest in hospitals pharma, chemicals, paper, hotels and auto components.

 

 

 

Prestige Estates, Nirmal in talks to jointly develop mall in Mulund

 

Bengaluru-based developer Prestige Estates Projects is in talks to enter into a partnership with Mumbai’s Nirmal Lifestyle to jointly develop a 1 million sq ft mall in Mulund suburb of Mumbai. As part of Rs 1,000-crore agreement, Prestige will pay 50 per cent upfront to Nirmal, while the balance amount will be invested in the project that has been a non-starter for the last couple of years. Both Nirmal and Prestige Estates Projects remained unanswered till the time of going to press. Prestige Estates Projects has been looking to acquire malls across major cities to expand its rental income base. Earlier this month, ET reported that the company is in talks to buy out malls across Pune and Mumbai, which will also mark its foray into these cities. Earlier this year, Prestige group acquired Singapore-based CapIta-Land’s stake in five mall projects in Hyderabad, Mangaluru, Mysuru and Udaipur. The buyout includes a mall management company operating Oakwood serviced Residences in Bengaluru and under construction properties in Kochi.

 

 

 

Poddar Housing to buy 102.5 acre land in Pune to develop residential project

 

The land would be acquired along with trunk infrastructure facilities, on a deferred payment terms, it said. Autoline Industrial Parks is a subsidiary of Autoline Industries Ltd. Poddar Housing and Development has agreed to buy 102.5 acres land in Pune to develop an affordable housing project. In a filing to the BSE, the company said that its subsidiary Poddar Habitat Pvt Ltd, has "executed an agreement to acquire a land admeasuring approx 102.5 acres" at Chakan, Pune from Autoline Industrial Parks Ltd. The land would be acquired along with trunk infrastructure facilities, on a deferred payment terms, it said. Autoline Industrial Parks is a subsidiary of Autoline Industries Ltd.

 

 

 

Godrej Properties partners Shipra Group to develop housing project in Noida

 

Realty firm Godrej Properties said it will develop a new luxury housing project in Noida in partnership with Shipra Group. This is Godrej Properties' fourth project in Noida and 13th project in the National Capital Region (NCR), the company said in a statement. Godrej Properties, the real estate arm of the Godrej group, said it has added a new luxury residential project in Noida, in the centrally located Sector 43. Godrej Properties will "develop this project in partnership with realty firm Shipra Group that has presence in north India. Godrej Properties has established itself as a market leader and is looking to consolidate this position through the addition of marquee developments in outstanding locations.

 

 

 

Crumbling demand dogs Indian cement maker

 

Ultratech Cement Ltd. is one of the world’s biggest cement manufacturers, with the capacity to put out 90 million tons a year from plants sprinkled across India. It purchased distressed assets from Jaiprakash Associates Ltd and is battling to buy even more out of bankruptcy. Ultratech is taking a smart tack in India’s fragmented cement industry: consolidation.

 

After its acquisitions, the company, majority-held by the conglomerate Aditya Birla Group, will hold around 40 per cent of the western and central Indian markets. Cement is big business for the Birla Group, whose industry spans textiles to telecom. It makes up more than 60 per cent of the Group’s consolidated Ebitda, having pulled in $1 billion in the last fiscal year. The dividends from Ultratech are the company’s biggest and help fund its broader ambitions.

 

 

 

Cement demand in South India improving: N Srinivasan, India Cements

 

Chairman of India Cements N Srinivasan, speaking at the company’s 72nd AGM said that cement demand in the Southern region of the country is increasing with growth in infrastructure and housing. The company expects that demand in the second quarter will also improve despite the floods in Kerala and the transporters’ strike. The Southern region recorded a growth of over 20 per cent cement output in the first quarter of the current fiscal driven by the infrastructure spend by the Governments of Andhra Pradesh and Telangana and also as a result of the lifting of sand mining ban in Tamil Nadu, he said.

 

 

 

LIC HFL invests Rs 150 cr in projects of Karda arm

 

LIC Housing Finance, the housing finance arm of the country’s largest insurer, has invested over Rs 150 crore in a portfolio of realty projects of listed entity Karda Constructions’ group company. The portfolio of nearly a million sq ft development across residential and commercial projects in Nashik is being executed by Shree Sainath Land & Developers (India). The deal assumes significance as it indicates institutional investors’ rising interest in tier-II property markets. This is also the largest financing transaction ever in Nashik real estate market.

 

With this transaction, existing investor Tata Capital Housing Finance will exit the project Eastext Township, while the rest of the funds will be used for the construction. Tata Capital Housing Finance had invested around `50 crore in these projects in 2016 and had already secured partial exit from promoters and will exit completely with this transaction.

 

 

 

Motilal Oswal Real Estate raises Rs 575 crore fund; to deploy in affordable housing

 

MORE announced the first close of India Realty Excellence Fund IV (IREF IV), its fourth real estate fund. "The fund has raised commitments aggregating to Rs 575 crore," the company said in a statement. Motilal Oswal Real Estate (MORE) said it has raised Rs 575 crore for its fourth realty fund and the amount will be invested mainly in housing projects across six major cities.

 

MORE is part of Motilal Oswal Private Equity, which is the alternative investments platform of Motilal Oswal Group. The total assets under management (AUM) under Motilal Oswal Private Equity is more than Rs 5,000 crore. MORE announced the first close of India Realty Excellence Fund IV (IREF IV), its fourth real estate fund. "The fund has raised commitments aggregating to `575 crore," the company said in a statement. The amount has been raised from high net worth individuals (HNIs) and family offices. The fund is set up as an alternative investment fund (AIF Category II).

 

 

 

 

Mahindra Logistics plans to add 5 lakh sq ft of warehouse space

 

In a bid to provide more focus on warehouses and distribution, the Rs 3,500-crore Mahindra Logistics plans to add 500,000 sq ft of warehousing space before the end of this fiscal.

 

The introduction of Goods and Services Tax was the start. Pre-GST, in every State a company had to open a god own or a small warehouse. However, GST provides opportunity to set up large format warehouses.

 




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