Sunday, July 14, 2024

Ticker Tape May 2023

Ticker Tape May 2023

Avighna Group to invest Rs.1,000 crore for two luxury home projects in Mumbai, foray into UK market

Mumbai-based Avighna Group plans to invest Rs.1,000 crore and launch two luxury residential projects in Worli having a saleable area of 2 lakh square feet. The construction for both these projects has started, and the group is actively exploring opportunities to enter the United Kingdom market and open to residential, commercial and hospitality segments for it.

The company is also open to the redevelopment of old buildings in Mumbai and is exploring opportunities in the construction of warehouses and data centres.

What will be launched?

“We will be launching two luxury residential projects in the form of a 2 lakh sqft saleable area. This will include 3 BHK apartments of 2,300 sqft carpet followed by 4 BHK of 3,300 sqft and 5 BHK of 5,100 sqft. We are already getting a lot of enquiries for the same as construction has already started. We will launch the two projects in the next three to six months, and the majority of the saleable area will be luxury residential and a negligible amount will be available for retail,” said Agarwal. According to market sources, the current per sq foot rate for residential property in the Worli micro-market varies between Rs.1 lakh sqft to Rs.1.5 lakh sqft depending on several factors like the age of the property, locality, etc.

Focus on luxury residential

According to the company, its focus will be to come up with luxury residential projects in prime locations of Mumbai and along with two luxury projects in Worli has a third project in the pipeline. In the past, the company had constructed One Avighna Park in Currey Road, which is one of the marquee projects of the company.

“Mumbai and prime areas of Mumbai will be our focus. Worli and Andheri currently interest us considering the factor of they being centrally located. However, we are open to other locations in Mumbai also. Until now, we have constructed around 5 million sqft in Mumbai that includes both residential and commercial. We are a completely debt-free company and are investing from internal accruals,” added Agarwal.

Plans for the UK

The company believes there are business opportunities internationally and is currently exploring real estate investment in London. The reason for selecting the UK is owing to the ease and the suitable business environment. “We are currently actively looking for opportunities in the UK and London. The opportunity can be anything, say residential, commercial, or even hospitality. Our investment will also depend on the type of opportunity we get. We are also participating in several biddings, and are expecting to close a deal soon, Agarwal said. In the past, Lodha Group, also known as Macrotech Developers, had launched two projects in London. However, Lodha has announced not getting into London or international markets henceforth.

“We are very clear, all our growth will come from India, and all our receivables from the two London projects will be in by the end of the ongoing fiscal,” Abhishek Lodha, Managing Director of Macrotech Developers, told on April 26.

Commercial leasing plans

According to Avighna, its exposure to the residential segment is 70 percent currently and the balance 30 percent is from commercial.

“Going further, we want to increase our footprint in the commercial segment, and this will be by asset creation for commercial leasing. We want to build commercial spaces and lease them out rather than sell them. For this, we are ready to enter warehousing and data centres even if it involves entering deep micro markets of the Mumbai Metropolitan Region,” said Agarwal.

Redevelopment of old buildings

The company said it is open to the redevelopment of old buildings in Mumbai and taking up acquiring Slum Rehabilitation Authority projects that involve the rehabilitation of slum dwellers.

“We are open for redevelopment and SRA projects but very selectively. It depends on several factors. It should meet our criteria, and all the stakeholders involved should be wanting to do it. Several other factors will be required to be taken into consideration in case we want to foray into the redevelopment of old buildings and slum rehabilitation projects,” said Agarwal.

IPO on cards?

According to the company, they have no plans for launching an initial public offering (IPO). “We do not have any plans for raising money by getting the company listed or launching an IPO. As I said, we are a debt-free company and are managing investments from internal accruals.”

Brookfield completes Rs.5,000-cr deal to pick 51% stake in Bharti’s 4 commercial properties

Bharti Enterprises and Brookfield Asset Management entered into a Rs.5,000 crore joint venture agreement for a 3.3 million square feet portfolio of commercial properties in the Delhi-NCR region and Punjab. With this agreement, a Brookfield controlled real estate fund will now have an ownership of 51 percent of the joint venture, while Bharti Enterprises will retain a 49 percent stake.

Spread over 3.3-million square feet, the properties include Worldmark Aerocity in Delhi, Airtel Centre and Worldmark 65 in Gurugram, and Pavillion Mall in Punjab’s Ludhiana city.

“This transaction with Brookfield for our marquee properties in North India is a significant milestone for us to partner with a global infrastructure investor with deep and rich experience and insights into real estate,” said Harjeet Kohli, Joint Managing Director, Bharti Enterprises, said. Bharti Realty, a realty arm of Bharti Enterprises has built over 5 million square feet of grade-A diversified commercial real estate which include commercial, retail and lifestyle. In Delhi NCR, the firm is building more than 10 million square feet of retail and mixed-use real estate space. After this deal, the company will retain ownership and operation of its remaining commercial properties, which include a 10 million square foot development in Delhi Aerocity. Kohli further added that Bharti will continue to make more real estate assets for the growing demand for well-managed commercial real estate in India. “High quality real estate in global gateway markets and in particular, the Indian office market, continue to witness high demand from occupiers. We look forward to leveraging our global expertise to build future ready office environments in India,” said Ankur Gupta, Managing Partner, Head of Real Estate, APAC region and Country Head – India, Brookfield. The Canada-based global investment firm Brookfield owns and operates more than 50 million square feet of commercial real estate in Delhi-NCR, Mumbai, Bengaluru, Chennai, Pune, Hyderabad and Kolkata markets.

Adani Group-promoted ACC net profit falls 40% in Q4

Adani Group-promoted ACC reported an over 40% year-on-year decline in its consolidated net profit for the March quarter at Rs.235.66 crore, even as total income for the period rose more than 9% to Rs.4,910.06 crore and the volume of cement sold was higher.

The Adani Group company’s earnings before interest, tax, depreciation and amortization was Rs.588 crore during the quarter, down 15% on year, while EBITDA margins for the quarter stood at 12.3%, down 340 points on year. This was primarily on account of weaker realisations. On a sequential basis, both the operating profit and margins improved helped by cost efficiencies.

ACC cut down its cost by 5% per tonne, or Rs.264 to Rs.5,106 per tonne, which helped it improve the operating profit made on each tonne of cement sold to Rs.694 from Rs.542 a quarter ago.

“Our transformation journey fuelled by sizeable operational efficiencies, improved synergies and business excellence has led to substantial improvement in our financial performance and overall business indicators,” Ajay Kapur, the whole-time director and chief executive officer of the company, said.

“We have a detailed blueprint on each of the cost factors and initiatives to reduce and improve. This along with capex program will position the company back into growth momentum synonymous with its legacy,” he said.

Industrial and warehousing demand rises 11% YoY in Q1; vacancy levels shrink by 170 basis points: Colliers

Industrial and warehousing demand across the top 5 cities saw the highest leasing compared to the previous eight quarters, with the growth in private consumption in the domestic economy. The segment witnessed 11% YoY growth with a 7.2 mn sq ft lease in the first half of 2023.

Demand for warehouse and industrial space in the top 5 cities remained high in Q1 2023, increasing by 11% YoY to 7.2 million square feet. In comparison to the eight previous quarters, the quarter also saw the most leasing. 3PL operators, who made up 41% of all leasing during the quarter and kept expanding across big markets, supported this ongoing leasing trend. The FMCG industry came in at 12%, well behind this. Intriguingly, demand from the retail and FMCG sectors increased threefold year over year as they increased their presence in bigger areas like Mumbai and Delhi-NCR. This increase in the need for industrial warehouse space fits very well with the expansion of domestic private spending. Delhi-NCR led the demand during the first quarter accounting for 29% share in total leasing, followed by Mumbai at 25%. Mumbai saw 37% YoY rise in leasing, led by 3PL operators who continued their expansion spree in the city despite weaker economic & business sentiment. Tauru road and NH 48 in Delhi NCR and Bhiwandi in Mumbai remained attractive markets during the quarter.

“3PL operators are targeting larger dense markets with good-quality infrastructure for expansion to ensure quick delivery of online orders. It contributed to more than 2/3rd of the total leasing in Mumbai, led by select large deals. Average deal size by 3PL operators in the city was more than 2 lakh sq feet, 69% higher than pan India average. 3PL operators will continue to eye larger markets as they look to augment their distribution network.”says Vimal Nadar, Senior Director, and Head of Research, Colliers India.

Stamp duty in Maharashtra might be increased by 1% from April 1, 2023

According to recent reports, the stamp duty in Maharashtra may be hiked by 1 percent. If a hike of 1 percent is enforced, the total stamp duty in Maharashtra will rise to 7 percent from the present 6 percent. In addition to this, stamp duty in Navi Mumbai, Thane and Pune will also rise to 8 percent. The reports estimate that the stamp duty in Maharashtra can be hiked from April 1, 2023. If the proposal is accepted, the overall cost of houses will be increased across Maharashtra.If the Local Body Tax and Metro surcharge are also levied by the state government, the stamp duty might rise to 8 percent. However, if the LBT is not levied, the stamp duty will be 7 percent.

About Stamp Duty in Maharashtra

Stamp duty in Maharashtra is levied on property transactions across the State. The Maharashtra stamp duty and registration charges are charged under the Maharashtra Stamp duty Act.

To ease homeownership and boost the real estate sector amid the economic crisis caused by the Coronavirus pandemic, the Government of Maharashtra has reduced the Stamp Duty in Maharashtra to 2-3% of the property value. However, from April 2022, the stamp duty in Maharashtra has been reinstated.

Based on the bill passed by the Maharashtra state government on March 23, 2022, property buyers will get a waiver on stamp duty Maharashtra on purchasing resale properties for one to three years. The state government has taken this initiative to address the difficulties in property resale after the coronavirus pandemic outbreak. As per the terms and conditions of the bill, stamp duty in Maharashtra will be calculated on the difference in the property’s value and not on its overall price for the coming three years.

Stamp Duty in Maharashtra – Charges and Levies Covered (Rural and Urban)

Total Stamp Duty in Maharashtra includes Stamp Duty and additional taxes as follows:

In urban areas falling under Municipal Corporation or Municipal Council limits, there is a cess/ transport surcharge/ local body tax payable. This is 1% of the property value and is intended to be used for funding transport infrastructure projects in the cities such as Metros, bridges, flyovers, etc.

In rural areas which fall under Gram Panchayat and not under the jurisdiction of any Municipal Corporation or Municipal Council, this cess/ surcharge is replaced by Zilla Parishad cess. This cess is also payable at 1% of the property consideration value. An additional surcharge of 0.5% is applicable on areas falling under the Nagpur Municipal Corporation (NMC) and Nagpur Improvement Trust (NIT) jurisdictions. This is over and above the 1% cess/ surcharge payable.

Welspun One, GRT Group to develop 2.6-mln-sq-ft warehouses with Rs.700 cr investment

Welspun One Logistics Parks (WOLP), an integrated fund and development warehousing platform, has partnered with GRT Group to develop two Grade-A warehousing projects in Tamil Nadu totalling over 2.6 million sq ft with a total investment of Rs.700 crore. Each of these proposed parks will be spread across nearly 60 acres of land with a development potential of around 1.3 million sq. ft.

Realty sector future sentiment score scales up in optimistic zone

Private equity investor Actis is in advanced talks with infrastructure developer Patel Infrastructure Ltd to acquire a portfolio of four hybrid annuity model (HAM) roads from the company, said two sources aware of the development.

“Actis is currently conducting due diligence on these assets, two of which are operational and have started generating annuity payments and two roads which are under construction and are expected to be completed by the middle of next year. A final offer from Actis is expected by the end of this month. The under-construction projects will be acquired once completed and receive necessary approvals from authorities,” said one of the sources. The proceeds from the sale will be used to deleverage the parent company, Patel Infra, he said. The operating road projects are expected to fetch an enterprise valuation of around Rs.1,500 crore, he added. The portfolio of four road assets include a 48.8 km section of NH-12 in Rajasthan, a 31 km section of Vadodara Kim Expressway, the two operational roads and a 50.48 km stretch on NH-45C in Tamil Nadu and another 47.83 km stretch of NH-45C, the under-construction projects. Last year, Actis Long Life Infrastructure Fund acquired six operating road assets from Welspun Enterprises for an enterprise valuation of approximately Rs.6,000 crore. Actis is also planning to set up an InvIT to house these road projects, said the second source.

Best-ever April for Mumbai property stamp duty collection despite lower registrations

Pune has reported a remarkable stamp duty collection of Rs.621 crore for March 2023, which was 20 per cent more in comparison to the previous month. As per the reports, the total properties registered in March 2023 were worth Rs.9215 crores indicating hugh property prices with rising real estate demand in the city.

Khetsi Barot, the Director of The Guardians Real Estate Advisory said, “The upward trend is encouraging for developers and investors, who can anticipate a thriving market and continued growth in the future. Despite challenges, Pune’s real estate market has shown resilience and strength, and the city is in an exciting period. The market will flourish in the coming months and years if growth continues.”

Despite of rising home loan interest rates, the real estate housing demand outlook stayed positive. As per the recent data, the major housing demand was coming from first-time buyers with people looking out for enhancing their living places. The infrastructural developments and rising job opportunities also contributed in supporting the real estate market in the city.

NBCC receives PMC contract from PWD Puducherry

NBCC (India) has received an order for Project Management Consultancy (PMC) services from the Public Works Department (PWD), Puducherry. The selected consultant will be responsible for providing engineering and consultancy services towards the planning, designing and execution of disable accessible platform along roads, iconic cycle track, remodelling sewage system, recycled water network transmission and providing tertiary treatment plant works. The contract is valued at Rs.207.92 crore.

Building projects grew by over 94 pc in Chennai’s residential segment in Q1: CREDAI

Constructed projects in the residential segment in the city grew by 94.89 per cent during the January-March 2023 quarter, a study undertaken by real estate body CREDAI said on Saturday. The Research and Analysis Wing (RAW) of the Confederation of Real Estate Developers Association of India in its report said central Chennai accounted for 29 per cent of the projects followed by the city’s south at 26 per cent.

Despite the increase in the sales of constructed projects, the number of units registered during the quarter dropped by nine per cent. During the first quarter of calendar year 2023 (January-March), as many as 5,759 residential units were registered as against 2,955 units registered during the January-March 2022 period. “When compared to Q1-2022, we are overall pleased with the performance of the first quarter of 2023 and have generally met our expectations, regardless of a large decline in the number of projects and units registered in March 2023,” CREDAI Chennai President S Sivagurunathan said.

“What’s more encouraging is that the market has observed an apparent decline in the amount of unsold inventory from completed projects and sales by non-CREDAI members have also gone up as well,” he said. “Interestingly, based on sales and unsold inventory from completed projects, the trend seen is that home buyers are now favouring ready-to-move-in residences,” he added. Demands for housing layouts also grew during the first quarter as 1,128 layouts and 138 residential projects got registered, the report said.

MAIA Estates to invest Rs.4,300 cr and develop 4.5 million sq. ft property in Bengaluru

Real estate developer MAIA Estates plans to invest Rs.4,300 crore to develop 4.5 million square feet of property in Bengaluru by the end of 2025 and diversify from building luxury homes to the upper-mid segment. “We have already developed 6 lakh square feet in the city and plan to launch another 1.2 million sq. ft this year. By the end of the next year, we will have launched about 4.5 million sq. ft,” said Mayank Ruia, Founder of Bengaluru-based MAIA Estates. The total development includes about 3 million sq. ft of residential property and 1.5 million sq. ft of office space. Additionally, Ruia said about 3.5 million sq. ft of space will be developed for homes by 2025.

ONGC invites EoI for EPC works in Mumbai Offshore (Cluster-IX)

The Oil & Natural Gas Corporation (ONGC), Offshore Engineering Services Mumbai has invited expression of interest (EoI) for EPC and transportation and installation (T&I) works in MH asset in Mumbai Offshore (Cluster-IX) in Maharashtra.

The scope of EPC work comprises well head platforms (WHP), pipeline, extension of MSP flare bridge with new bridge support jackets involving pre-engineering survey, design, procurement, fabrication, load out, topside modification, testing and commissioning of new WHPs and others, as applicable.

The T&I component includes the transporattion and installation of WHPs, laying of submarine pipelines and extension of MSP flare bridge and installation of risers, and allied works.

Macrotech Developers to invest Rs.4,500 cr on real estate projects

Macrotech Developers will invest Rs.4,500 crore in construction works of real estate projects in the current financial year (FY) as it works to ramp up execution capabilities amidst strong housing demand. The developer has acquired land parcels which have an estimated revenue potential of nearly Rs.20,000 crore, after development. The Mumbai-headquartered developer, which sells its properties under the Lodha brand, has set a target of 20 percent growth to Rs.14,500 crore in the current FY. The company has notched up a significant cash flow surplus through its products, including building and delivery of these projects, and plans to utilise it towards investment, primarily in land-specific assets.

Under new business development, Macrotech creates land banks through outright purchases and joint development agreements (JDAs) with landowners. It has allocated Rs.17,500 crore plus of new business development for the ongoing FY.

The company envisions expanding business in the Mumbai Metropolitan Region (MMR) and Pune markets, and has lined up the launch of two projects in Bengaluru in this FY. Macrotech has delivered around 94 million sq. ft. of real estate, and is currently developing about 105 million sq. ft. under its ongoing and planned portfolio. Beyond this, the company has over 4,300 acres of land.

New group housing complex to come up in Ludhiana, Punjab

Gulab Valley Housing is planning to develop a new group housing complex ‘River Heights’ at Bhirmi village in Ludhiana district of Punjab. The project will spread over 3.43 acres of land parcel, and includes the construction of three high-rise towers of S+28 floors with 155 flats. In Q1/2023, Gulab Valley Housing received environmental clearance (EC) for the project.

As per the latest updates shared with Projects Today, work on the project is expected to commence by mid-2023. The architect and contractor have already been finalized.

The company is hopeful of completing the project by March 2026.

Mahindra Lifespace bags society redevelopment project in Mumbai

Mahindra Lifespace Developers (MLDL) has been selected as the preferred partner to redevelop a residential society in Malad West in Mumbai. The housing society is spread over 3.6 acres of land, and the redevelopment will unlock a revenue potential of Rs.850 crore. This is the second society redevelopment project bagged by the real estate and infrastructure development arm of the Mahindra Group. The project will allow the existing homeowners to upgrade to larger and better residences with modern facilities.

The redevelopment prsents a new growth path to MLDL, which plans to evaluate more such opportunities and expand its residential portfolio in Mumbai. Mahindra Lifespaces has a presence in the Mumbai Metropolitan Region (MMR), with over 10.77 million sq. ft. of space. Its overall portfolio of completed, ongoing, and upcoming residential projects in seven cities in India, boasts of a total area of 32.97 million sq. ft.

The company is currently developing and managing over 5,000 acres of projects in multi-locations, including integrated developments and industrial clusters.

Finolex Cables Ltd to set up a Preform Plant at Urse, Pune

Finolex Cables Ltd will set up a plant at Urse facility, Pune to produce Optical Fibre Preforms as well as expand on its Fibre draw capacity. The plant with an initial capacity of 100 Tons of Preforms, is being set up at a cost of Rs.290 Cr approx., and would be funded entirely out of internal accruals. The construction will commence upon receipt of necessary regulatory approvals. The production from this new plant is expected to commence in 15 months approximately from the date of commencement of construction of plant. The plant’s capacity would be scalable and would be expanded at a later date subject to market requirements.

IndoSpace invests Rs.1,000 cr to expand warehousing network

Industrial and logistics parks developer IndoSpace has invested Rs.1000 crore to expand its warehousing network in the national capital region (NCR), which will comprise the development of 3.4 million sq. ft. spread across two logistics parks, located in Dhatir, near Palwal, and in Taoru, near Sohna respectively.

Further on, the company will focus on greenfield assets in NCR for FY24, even as current and upcoming infrastructure, such as, KMP Expressway, Delhi-Meerut Expressway, is expected to raise demand for warehousing, which resonates with the growth plans of companies operating in e-commerce, third party logistics (3PL), pharma, distribution, and retail sectors. The real estate arm of the Everstone Group currently owns eight parks with a total potential development of 14 mln sq. ft. in NCR. Significant activities related to the warehousing industry is witnessed around Haryana’s Bilaspur Chowk belt, covering Pataudi Road, Tauru Road, Farukh Nagar, and Jhajjar. Delhi-NCR , which is home to several industries, witnessed the highest absorption in 2022 at 16 percent. The overall industrial and warehousing space stock in tier-I cities stood at 300 mln sq. ft. at the end of 2022, and is expected to reach 342 mln sq. ft. in 2023, as per a recent report.

Prestige Estates inks pact to redevelop Worli project in Mumbai

Prestige Estates Projects has entered into a development agreement with the Worli Shivshahi CHS to redevelop a prime property in Worli locality in Mumbai, with an investment of Rs.578.37 crore. The developer will execute the project through its subsidiary, Prestige Falcon Mumbai Realty. The project, which involves 192 tenements is spread over 3.3 acres opposite the GlaxoSmithKline property on Dr Annie Besant Road in central Mumbai. The developer is planning to develop a premium residential development on the plot, with completion expected in the next four years after commencement. The launch is expected by September, 2023 as the project is currently in the planning and approval process. The overall development potential of the project will be one million sq. ft. carpet area, with a revenue potential of nearly Rs.6,000 crore. The free-sale component would be around 7.5 lakh sq. ft. after factoring in the rehabilitation component.

The redevelopment project has been stalled for more than a decade, as the earlier developers could not execute the project due to disagreements with the society members and other reasons.

Leave a Comment

    Advertiser's Gallery

    Special Focus

    EXCON 2023

    Yet Another Stellar Edition

    Media Partnership

    Issue Archive