Monday, February 6, 2023

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Ticker Tape – Construction

Tata Realty’s Ramanujan Intellion Park becomes India’s first EDGE Zero Carbon Project

TATA Realty’s Chennai commercial asset – Ramanujan Intellion Park, becomes the first Indian campus to be recognized with the EDGE Zero Carbon certification by the International Finance Corporation (IFC).

EDGE’s new Zero Carbon certification allows asset owners to map a quantified path to zero carbon and attain immediate recognition through certification. This recognition comes as India reiterated its climate goals during the COP 27meeting in Egypt.

Tata realty’s participation in COP 27 (Egypt Climate Summit) is one of the small steps taken by the company in order to combat the global climate emergency. In order to meet the Paris Agreement, there is a need for every building constructed to meet the Zero Carbon goals by 2050.

Ramanujan Intellion Park has achieved a complete reduction of emissions through renewables or carbon off-sets, saving more than 20 percent on water and embodied energy in materials while attaining over 40 percent energy savings on-site. This is a step towards Tata Realty’s ESG approach to being a “Responsible Real Estate Developer Leading the Change with Purpose”.

Sanjay Dutt, MD & CEO, Tata Realty and Infrastructure Limited, said, “Tata Realty has always endeavoured to exceed its ESG goals and has placed sustainability on high significance. According to International Energy Agency (IEA), by 2050, buildings and the construction sector combined will be responsible for 30 percent of total global energy consumption and 27 percent of total energy sector emissions. We will develop green buildings with LEED platinum certification, WELL certification, and IFC EDGE certification. In addition to this, we will have an enhanced focus on renewable energy inclusion in our energy mix. On the social front, we have taken a commitment to touch over one lac lives positively.” As per the IEA, buildings around the world contribute to about 40% to the current greenhouse gas emissions. This has led long term investors like pension funds and financial institutions to analyze the overall energy efficiency of their portfolios.

“With buildings responsible for a significant amount of emission and energy consumption, scaling up innovation to support availability of more resource-efficient and affordable buildings in emerging markets is vital to addressing climate change and reaching the global goal of net-zero emissions,” said Wendy Werner, India Country Head at IFC. “We are encouraged by the commitment shown by Tata Group and other private sector players in India to contribute to the global climate goals and build a a sustainable future. Our hope this that this will encourage more builders and developers to aim for zero emissions and take part in the EDGE certification process.”

After establishing its strong foothold in Chennai, Gurugram, and Mumbai, TATA Realty and Infrastructure Limited aims to add 10 mn. Sq. ft. in the next 3 years and move towards its goal of having a portfolio of 45 million sq. ft. by 2027.

TATA Realty and Infrastructure Limited is a 100% subsidiary of Tata Sons and one of the leading real estate development companies in India with an extensive portfolio of over 50 projects across 15 cities. TATA Realty and Infrastructure Limited has developed 16.8 mn. Sq. ft. of commercial projects and has ~30 mn. sq. ft. of projects under development & planning.

Godrej Properties acquires two land parcels in Noida for Rs.377 crore

Godrej Properties Ltd has acquired two land parcels for a residential project in Noida from the local authority through an auction for Rs.377 crore. The authority had received five bids for two plots and Godrej has emerged as the highest bidder for both.

“The Noida authority will earn Rs.377 crore from the auction and this will attract investment of Rs.2,000 crore,” Noida authority said in a statement. The acquired plot is spread across 25,000 square metre and DLF and Golf Green mansions were the other shortlisted bidders but they did not participate in the auction.

The minimum price for each plot was Rs.188 crore. The developer will have to make the full payment within three months.

Godrej properties has recently entered into an agreement for outright purchase of a 50 acres land parcel in Manor, Palghar.

The company also acquired approximately 7-acres land parcel in the vicinity of Indiranagar, Bengaluru. This project is estimated to have a developable potential of approximately 0.6 million sq ft of saleable area. It has an estimated booking value potential of approximately Rs.750 crore.

Godrej Properties had also acquired 0.5 acres land parcel from the Karam Chand Thapar (KCT) group to develop a luxury project near Carmichael Road, Mumbai. This project has an estimated booking value potential of approximately Rs.1,200 crore.

Reliance Industries’ subsidiary building green smart city near Gurugram

A subsidiary of Reliance Industries Ltd. is building a smart city near Gurugram, and one of the four Japanese businesses that will be housed there has broken ground for a medical devices division.

The company said in a statement: “Model Economic Township Limited (MET City), a wholly owned subsidiary of Reliance Industries Limited (RIL), is creating a world-class Greenfield Smart City near Gurugram, Haryana. Four of the top Japanese corporations are located in the integrated industrial township of MET City, a Japan Industrial Township (JIT). The Japanese businesses Panasonic, Denso, and T-Suzuki are all located in MET City. The project’s trunk infrastructure, which consists of a water treatment facility, a 220 KV substation built by MET City, a broad road network, and considerable landscaping, has already been completed.

Vascon Engineers inks JV agreement for commercial project in Kharadi, Pune

Vascon has signed the JDA with Landowner to develop a commercial project at Kharadi a well-established and growing market of Eastern Pune. This project will offer approximately 2.15 Lakhs square feet of development area and will be developed as a Retail and office premises. Vascon has already developed more than 15 lakh square feet residential project in Kharadi, and this project will significantly strengthen Vascon’s Commercial portfolio in Eastern Pune. Commenting on this Siddharth Vasudevan, Managing Director, Vascon Engineers Ltd said, “I am happy that we are moving a step ahead with this towards our vision and focus for Real Estate business. This project will give us a commercial launch in East Pune after 5 years. We have had our success in commercial projects in East Pune in Viman Nagar & Kalyani Nagar, now Kharadi will add on to the portfolio as well.”

Infiniti Retail leases 6.30 lakh sq ft at Welspun One’s Bhiwandi logistics park for 18 years

Infiniti Retail, a subsidiary of the Tata Group, has picked up nearly 6.30 lakh sq ft warehousing space at Welspun Logistics Park in Bhiwandi near Mumbai through a long-term lease of 18 years.

The consumer durables and electronics retailer, operating under the brand name Croma, has entered into an agreement for the same with DBG Estates, a subsidiary of Welspun One Logistics Parks (WOLP), an integrated fund, development, and asset management organization. The company will be paying a total lease rental of Rs.531 crore through the entire term of the lease. The rentals including the common area maintenance charges in the first year will be Rs.1.63 crore per month for this warehousing space.

As part of the agreement, DBG Estates is not allowed to terminate the lease until its tenure comes to an end, while Infiniti Retail will have a lock-in period of 48 months, showed the documents accessed through CRE Matrix, a real estate data analytics firm.

The company will get rent-free access to the property for three months for fitouts. While the early access will be given to Infinity Retail on February 1, 2023, the final handover of the leased premises after the completion of handover of the leased premises will be on May 1, 2023. Infiniti Retail will be paying security deposit of a total Rs.6.51 crore in three tranches including the execution of the letter of intent, signing of the lease deed, and the lease commencement date. As part of the deal, Infiniti Retail will get exclusive access to a total 373 parking slots comprising 15 car parks, 278 bike parks and 50 truck parks. Infiniti Retail and Welspun One remained unanswered until the time of going to press. At its Bhiwandi and Gurgaon’s Farukhnagar logistics parks, Welspun One has recently delivered operational warehousing facilities spread over 4 lakh sq ft to e-commerce focused tech-driven logistics company Ecom Express. The demand for warehousing space has stood out in the last few quarters led by penetration of e-commerce and growth of third-party logistics in the middle of the ongoing pandemic scenario. According to experts, the accelerated adoption of e-commerce, same-day or next-day delivery commitments fulfilled by third-party logistics companies, and the need to diversify supply chains are pushing demand for warehousing and logistics. A favourable regulatory backdrop along with the government’s support through policy and reforms are further expected to boost the infrastructure spend and in turn the overall demand for modern warehousing. The industrial and logistics segment has become a key growth driver in real estate and expansion of the online retail sector has resulted in greater demand for warehousing, thereby resulting in higher investments in infrastructure and supply chain modernisation.

Tata Capital Housing Finance looking to raise Rs.3000 crore from NHB

In order to expand its business, Tata Capital Housing Finance, a Tata Capital subsidiary, intends to make a significant push into the home loan market. To do so, it is looking for capital of Rs.3,000 crore from the National Housing Bank and intends to raise Rs.1,000 crore through bonds. Both retail and real estate developers will be eligible for financing from the organisation.

The funds are being sought as the company’s loan portfolio grows, going from Rs.29,311 crore on March 31 to Rs.33,201 crore as of September 30 this year. Loans to real estate developers made up the remaining 55% of the overall portfolio, followed by loans against property (27%), and retail housing loans (55%).

KSB wins Rs.28 crore project from Bharat Pumps and Compressors

KSB Limited has bagged an approval for bid submitted under e-Auction for sale of technology – Intellectual Property Rights / Drawings of Bharat Pumps and Compressors Limited (BPCL), Naini, Prayagraj. As per the filing, the Company is in process of accepting the said contract of sale of technology by BPCL, by paying the required security deposit. The security deposit is to be paid within 7 days of approval of bid and the balance payment alongwith applicable taxes and duties to be paid within 21 days of approval of bid. On receipt of balance payment by BPCL, Delivery Order will be issued to the Company. Total bid price is Rs.28 crore plus applicable taxes and duties.

JK Tyre & Industries to invest Rs.1,100 crore in increasing production capacity over 2 years

With consumer demand soaring in rural and semi-urban regions throughout the holiday season, JK Tyre & Industries is on track to invest Rs.1100 crore over the next two years to increase production capacity. “While globally there are concerns that may slow down growth in overseas markets, there is a buoyancy in demand here,” Anuj Kathuria, President (India), JK Tyre & Industries, told ET. Sales have gotten a boost from the holiday season, especially in rural and semi-urban regions. We are preparing for increased levels of production with regular monsoons and a growing rural economy.

For the second quarter ending September 30, 2022, JK Tyre & Industries reported a 23% fall in net profit to Rs.50 crore. However, overall revenue climbed to Rs.3,764 crore in the reviewed period from Rs.2,998 crore in Q2FY22. The company’s operational margins increased as a result of favourable market circumstances.

Due to improved economic activity and increased government spending on infrastructure projects, the company anticipates that demand in the domestic market will continue robust moving forward. With some easing witnessed in pricing last quarter, pressures from the unheard-of rise in raw material costs – seen in the prior seven quarters – are also anticipated to ease off moving forward.


Welspun One and Karnataka Govt sign MoU for Rs.2,000 crore investment

A Memorandum of Understanding (MoU) has been signed between the government of Karnataka and Welspun One Logistics Parks (WOLP), an integrated fund, development, and asset management firm, to increase WOLP’s footprint in the South Indian warehousing market. With the aid of this partnership, the corporation wants to invest a total of Rs.2,000 crore in Karnataka. Over a five-year period, 6.28 million square feet will be devoted to the construction of the warehouses and logistics parks, which will result in the creation of more than 6,000 jobs.

Welspun One stated in a release that it aims to efficiently utilize both public and private land parcels in Karnataka for the development of Grade A storage facilities and logistics parks.

Structural audit of high-rises in Noida approved

The Noida Authority board has approved a policy proposal for structural audit of high-rise buildings in the city, according to an official statement. The policy defines roles and responsibilities of the builder as well as the residents’ association vis-a-vis repair of structures, if found defective during audit. The decision was taken during the 207th board meeting of the Noida Authority held at its office in Sector 6 here on Saturday. The meeting was chaired by Uttar Pradesh Infrastructure and Industrial Development Commissioner and Noida Authority chairman Arvind Kumar with Noida Authority chief executive officer Ritu Maheshwari in presence. While the policy has been approved by the board, it would take around a week for it to get implemented due to paper work at the local level, a senior official told PTI. There are around 100 high-rise projects in Noida, many of them having multiple towers, the official added. In relation to structural audit of multi-storey buildings located in the authority area, the statement read: “the structural policy was prepared by the Noida Authority on the demand of flat buyers and AOA (apartment owner’s association), in which the Structural Audit Policy has been approved by the Authority Board with partial modifications”. “According to this policy, the structural audit report from empanelled IIT or NIT or expert institutions will be submitted by the developer before the partial or full occupancy certificate is issued,” according to the statement. It stated that even after the issuance of partial or full occupancy certificate, in any project, if 25 per cent or more allottees of AOA or tower complain about structural defects, the committee constituted at the authority level will examine the complaint and decide whether the structural defect is of minor category or comes under major category.

“For structural defects of major category, structural audit will be conducted from expert institutions. Under the Apartment Ownership Act, it is the responsibility of the builder to remove the structural defects within two years,” it stated.

“According to the RERA Act, the responsibility of removing the structural defects rests with the builder for five years and after five years with the AOA. This period will be calculated after the issue of occupancy certificate of the entire scheme, “ according to the statement. At present, it has been decided by the Board that if the structural audit report comes negative, then the structural defects will be removed by the builder within five years from the date of issue of occupancy, it stated. In the cases of two to five years period, the authority will inform the Real Estate Regulatory Authority (RERA) to get the action taken by the builder to rectify the deficiencies found after getting the audit done by the empanelled agency, it added.

Ganesh Industrial Complex starts two more industrial parks

Ganesh Industrial Complex, situated in Kolkata, has added two more industrial parks totalling 500 acres at a cost of Rs.100 crore.

Due to the exponential growth in the number of e-commerce companies that need to hold more merchandise close to customers, the demand for warehouses in India’s Tier-1 and Tier-2 cities has surged. The industrial and warehouse real estate markets in India are expected to keep growing and expanding.

Ganesh Industrial Complex, which offers warehousing solutions to a number of companies in and around West Bengal, is the driving force behind this boom in Eastern India. In four present parks in Ranihati, Rauta, and Panchla, close to Kolkata, they have cutting-edge warehouse facilities with cutting-edge amenities, totalling 17,424,000 square feet. The initiatives of Ganesh Complex are in line with the Make in India strategy, which intends to accelerate the expansion of the manufacturing sector, add 100 million new manufacturing jobs by 2025, and raise its GDP contribution to 25% by the same year. As part of the EASTPANSION initiative, Ganesh Complex is continually promoting investment, stimulating innovation, improving skill development, protecting intellectual property, and building a top-notch infrastructure for manufacturing in Eastern India. Since 2021, the West Bengal government has approved reducing the amount of land required for industrial parks from twenty acres to five acres. Additionally, all rural and urban parts of the state have mobile connectivity, and there is always access to reliable power, gas, water, and telecom services. excellent networks of roads and rail. For both mid-scale and large-scale enterprises, the industrial parks offer the perfect warehousing options. The parks are around 50 kilometres from Kolkata,and strategically located, and is connected to NH-6 and Bombay Road at Panchla and Ranihati. Modern warehouses and industry-specific amenities are both present in the complex.

ASK Property Fund, Shriram Properties come together to invest in real estate in Bangalore, Chennai, Hyderabad

ASK Property Fund, the ASK Group’s alternative asset investment division, and real estate developer Shriram Properties have agreed to establish an investment platform for the purchase of residential real estate projects.

Shriram Properties and ASK will co-invest in residential and planned development projects in Bangalore, Chennai, and Hyderabad as part of the platform agreement.

The platform will receive cumulative pledges of up to Rs.500 crores, and the committed cash is anticipated to be spent over the course of the following 12 months.

Through its managed Category II Alternative Investment Fund, ASK will make investments.

Shriram and ASK previously collaborated on the construction of Shriram Chirping Woods, a residential apartment complex on Sarjapur Road in Bangalore. In 2020, ASK successfully withdrew from the investment. In accordance with the new platform, Shriram and ASK have already committed their first investment in a plotted development project in North Bangalore.

The platform would invest up to Rs.125 crores in the acquisition and development of this project, which has already received all essential clearances and has infrastructure development that has been half completed.

 The projected project, which has an 8-lakh square foot saleable area, is scheduled to debut in the third quarter of 2022–2023.

Private equity investments in self-liquidating mid-income and affordable residential and commercial segments are the main emphasis of ASK Property Fund. Since 2009, ASK Property Investment Advisors has received funding from family offices, ultra-high net worth individuals (UHNI), high net worth people, and institutions totalling around Rs.5,000 crore.

Vaishnavi Group to redevelop Bangalore’ Chalukya Hotel

Realty firm Vaishnavi Group and the owners of Chalukya hotel in Bengaluru are finalising the terms of an agreement under which the iconic property will be redeveloped into a grade-A office complex, people aware of the plan. Redevelopment of the property, which is owned by Mohammed Iqbal, is expected to take two years from the time the requisite approvals are in. It will offer 150,000 sq. ft. of office space, the people cited earlier said.

“Vaishnavi Group and the landowners who run the hotel are finalising the terms of the joint development agreement, and the deal is expected to be closed in another two weeks,” said two people aware of the transaction. Samrat restaurant in Chalukya hotel, located in the heart of the city, a stone’s throw from Vidhana Soudha, has been popular among politicians, bureaucrats, tourists and the city’s residents since 1977. “The popularity of the hotel is such that Basaveshwara Circle, where the hotel is located, is commonly known as Chalukya circle. It’s a landmark,” one of the persons cited earlier said. “Vaishnavi is seeing if they want to keep the brand name as Chalukya or opt for rebranding.” Vaishnavi Group has been developing commercial spaces for over two decades now. It had leased out 1.5 million sq. ft. last year. Across commercial and office segments, the realty firm’s projects in the pipeline offer an aggregate 4 million sq. ft. of space. Of this, plans are to launch 3 million sq. ft. in the near future. Bengaluru’s residential segment continues to see high absorption after the revival of the market and higher pre-commitment from corporates for large office spaces. According to real estate consultant JLL, from an overall market leasing perspective, January-September 2022 leasing activity in Bengaluru stood at 8.2 million sq. ft. (23% of India’s total), already equalling the numbers for the full year 2021. In the first nine months of 2022, Bengaluru’s residential market recorded an all-time high sales of 35,446 units.

TARC launches residential project in New Delhi ‘TARC Tripundra’

TARC Ltd has launched its luxury residential project, TARC Tripundra. Nestled amidst the scenic and posh environs of Pushpanjali Farms on the main Bijwasan Road in New Delhi. Conveniently located within easy driving distance of commercial and social hubs across Delhi-NCR and located at an equidistant from Delhi and Gurugram, TARC Tripundra enjoys seamless connectivity to the Indira Gandhi International Airport and Aerocity. The premium project offers 3 and 4-BHK homes priced Rs.4.5 crore onwards. The gated township stands out for its enormous Delhi green view, 7D security, indoor heated pool, terrace area with an open air theatre, star-view facility, and a meditation deck among other facilities. Amar Sarin, CEO & Managing Director – TARC Ltd said, “TARC Tripundra has been launched keeping in mind the aspirations of homebuyers to live within the Capital without worrying about the city’s hustle and bustle. Accordingly, our emphasis is on creating an upscale luxurious residential enclave that will be akin to an oasis within the bustling city. Moreover, since most of the flats face open areas on two or three sides, there is ample provision for the entry of natural light, fresh air and cross-ventilation across every apartment. The 6-feet-plus wide balconies and sundeck options also augment the charm of TARC Tripundra.”

JSW Group to invest Rs.1 lakh crore in Karnataka over 5 years

The investments will go toward the development of a new greenfield port as well as the steel, green energy, cement, and paints industries. According to chairman Sajjan Jindal, the steel-to-paints JSW Group will invest Rs.1 lakh crore in Karnataka over the next five years across all of the group’s businesses. According to Jindal, the investments will go toward the development of a new greenfield port as well as the steel, green energy, cement, and paints industries. In the state where its flagship Vijayanagar steel factory is located, the business group has already made an investment of Rs.1 lakh crore. Karnataka has been a leader in the development of industries and continues to offer a ripe ecosystem that fosters innovation and entrepreneurship at its core, he added.

The steelman also asked state officials to expedite the monetization of natural resources, not only to boost government revenues but also to address supply-side challenges that companies confront.

Given the high standards of education, proactive governance, and efficient policymaking in the state, which has also made Bangalore the start-up capital of India, Karnataka has maintained its position as one of the most sought-after investment destinations in the country, according to him.

L&T-led realty arm signs agreement with CapitaLand India Trust to develop prime office spaces in India

L&T Realty, the Real Estate Development arm of Larsen & Toubro and Singapore-listed CapitaLand India Trust Management Pte. Ltd., trustee-manager of CapitaLand India Trust (CLINT), have entered into a non-binding term sheet for a commercial platform to develop close to 6 million square feet (0.56 million square metres) of prime office spaces across Bengaluru, Chennai and Mumbai in India. Under this platform, L&T will build and develop office spaces – while CLINT will market the office spaces. Depending on the completion of these developments, CLINT expects majority of the capital commitment for the projects to start from 2H 2024 onwards. CLINT will acquire the ownership of these properties in a phased manner, the company said.

Lulu Group may invest Rs.1500 crore in a new mall in Greater Noida

The Lulu Group, which has its headquarters in Abu Dhabi, may invest Rs.1500 crore to build a mall in Greater Noida in the NCR. The company’s representatives met with the authority and asked them to find suitable land. The Lulu Group, which already operates a mall in Lucknow, has committed Rs.2500 crore to three new projects in Uttar Pradesh: in Varanasi, Prayagraj, and Greater Noida. The Lulu Group has also made plans to build Ahmedabad, Gujarat, the largest retail mall in India. This will be an NRI investment, and the Rs.3,000 crore shopping mall would create 6,000 direct jobs and more than treble the state’s indirect employment. The last stages of the land acquisition negotiations for this project will see the laying of foundation stone early in 2023. The shopping centre will house more than 300 domestic and foreign brands, a multi-cuisine food court with seating for 3000 people, 15 multiplex screens with Imax, India’s largest children’s entertainment complex, and numerous other attractions.

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