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| India to generate 25% revenues for Emaar |
| Monday, June 25, 2007 |
The boom in real estate India sector may have a rub-off effect on global players. For Dubai-based real estate major Emaar Properties, with revenues of $3.8 billion in 2006, India is a key international market that would account for 20-25% of its global revenues by 2010. Currently, almost 80% of Emaar’s revenues come from projects in the Dubai market.
However, by 2010 the group expects the share of its international projects in its top line to be around 70%, with the Dubai market accounting for the remaining. Apart from markets in United Arab Emirates, Emaar Properties has presence in more than a dozen countries including United States, United Kingdom, Saudi Arabia, Syria, Jordon, Turkey, Lebanon, Egypt, Indonesia, Singapore, and Canada.
“India is a very important market in our international operations which is likely to account for up to 25% of our global revenues by 2010,” said Emaar Properties CFO Amit Jain.
The Middle East-based real estate giant, as part of its plans to replicate the model of large-scale development of master-planned communities involving commercial, residential, retail and hospitality projects in markets across the globe, has earmarked investments to the tune of $12 billion over the next five years in India.
On the drawing board are setting up the country’s largest shopping mall complex and the tallest building, senior company executives said. Emaar is present in India through a joint venture with Delhi-based MGF Group.
“Several model projects are in the offing in India over the next six months,” said Shravan Gupta, managing director, Emaar MGF India. Emaar MGF has also qualified for development of the Commonwealth Village in Delhi that would house over 8,000 athletes and officials in 5,000 dwelling units.
Plans are also in the offing to replicate Emaar’s flagship project Burj Dubai in India, though on a much smaller scale. The ongoing $20 billion-Burj Dubai project, spread over one-square kilometer in downtown Dubai, includes the world’s tallest building, 30,000 residential units, nine hotels with 2,000 rooms and over 5 million square feet of shopping space in The Dubai Mall.
Emaar executives claimed that by August this year, Burj Dubai is expected to replace the 509-meter tall Taipei 101 tower in Taiwan, as the world’s tallest building. Burj Dubai has already bagged the second tallest building in the world tag with 134 floors and adding one floor in three days - with a height of 484 meters, overtaking the likes of Sears Tower, The Petronas Twin Tower, and the Empire State Building.
Mr Gupta said currently only Delhi and Mumbai markets have the potential to support the development of such tall buildings, with well-defined residential, commercial, hospitality and retail spaces. “We are looking at Burj-like developments in India but on smaller scale as compared to the Dubai property,” he added.
The India story for Emaar does not end with its investments in India. Over 40% of buyers for Emaar’s properties in Dubai are from the Indian subcontinent. “This more or less is in line with the demographic profile of Dubai,” said Mr Jain. There has been a growing interest from NRIs and high net worth individuals from India in Dubai’s housing market, he conceded.
Talking to ET, Mr Jain said the proposed initial public offer of Emaar MGF next year would largely fund the development of the ongoing projects in the country. “While this gives us access to cheap capital for development of projects, it would also help to bring more discipline in the local operations,” he added.
source://indiatimes.com |
posted by India Properties @ 10:24 PM  |
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| Top local real estate firm DLF Ltd. opens India biggest IPO |
| Tuesday, June 12, 2007 |
The Top real estate India company, DLF Ltd., began taking orders from investors Monday for its initial public offering of shares in what will likely be India's biggest IPO ever.
DLF is offering 175 million new shares to the public in a price band of 500 rupees to 550 rupees, the company said. If all shares are subscribed, the company will raise between 87.5 billion rupees (US$2.1 billion, euro1.6 billion) and 96.25 billion rupees (US$2.35 billion, euro1.75 billion) depending on the cut off price.
A successful listing would boost the net worth of Chairman K.P. Singh and immediate family members, who together own 97.4 percent of the company, to more than US$18 billion (euro13.4 billion).
The sales end Thursday, and the stock is expected to list on the Bombay Stock Exchange as well as the National Stock Exchange by end of June.
India's largest IPO until now was that of Britain's Cairn Energy, which listed its Indian subsidiary on the local stock exchanges in December, raising 58 billion rupees (US$1.4 billion, euro1.1 billion)
India's booming economy, which is growing at close to 9 percent annually, has seen property prices soar in recent years, bringing windfall gains to companies like DLF that hold large land reserves on the outskirts of major Indian cities. Those were bought from farmers at rates much lower than the current market price.
However, the growth in the property market has slowed in recent months because of high prices and a series of interest rate hikes, most analysts and research groups feel the lull is temporary.
DLF's IPO is expected to be subscribed at the higher end of the price band, making it a US$23 billion (euro17 billion) company in terms of market capitalization, nearly twice that of its nearest rival Unitech Ltd., valued at about US$12 billion (euro9 billion).
DLF, the country's largest real estate firm in terms of the area it has developed, first tried to make a public offer last year, but scrapped the plans amid a stock market meltdown and disputes with minority shareholders.
The company plans to spend nearly 70 billion rupees (US$1.7 billion) from the IPO proceeds on acquisition of more land and construction of ongoing projects, DLF said in a filing with stock market regulators. The rest would be used to pay loans before they mature, it said.
Source://chinapost.com |
| posted by India Properties @ 4:00 AM |
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| Construction boom in Kovai |
| Tuesday, June 5, 2007 |
Real estate development in Coimbatore looks all set to peak, according to builders’ estimates, with takers for luxury apartments and residential complexes expected to rise in the coming year.
“We see much scope in Coimbatore since it promises a lot of development in the next few years,” said Nirmal Gadhiya, Director of Chennai-based Deccan Estates and Constructions Limited.
The company has ventured into Coimbatore with its ’All Seasons Luxury Apartments’ at Ramanathapuram, which include facilities like an aerobics room, gymnasium and swimming pool.
Expected to be completed in the next two years, the price for an apartment would range from Rs 30 to Rs 40 lakh.
Deccan Estates had also finalised land at the Race Course to cater to the needs of high-end customers, Gadhiya said.
The city already has players like Jain Housing, Mayflower Enterprises, Srivari and Presidium Constructions.
True Value and Real Value, both Chennai-based companies, have started work at Coimbatore, while Delhi based Orchid has submitted plans to develop a township at Kalapatti.
According to G Srinivasan, Chairman of Coimbatore unit of the Builders’ Association of India (BAI), “Most of the developers are targeting middle and upper middle class residents.”
“With the manufacturing sector looking up and the IT Park coming, the demand for housing projects is bound to go up. There are lots of companies coming in, including the Belgium-based Hansen Transmissions International NV and aN L&T plant,” said Jayakumar Ramadoss, former Chairman, CII.
Source://newindpress.com
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| posted by India Properties @ 3:56 AM |
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| India's top real estate firm upbeat on IPO, owner set to join world's billion |
| Friday, June 1, 2007 |
The top real estate india company, DLF Ltd., is confident of a strong response to its initial public share offering - the biggest in Indian stock market history � when it opens next month despite tapering house price rises, it said Wednesday.
A successful listing will propel Chairman K.P. Singh and his family that owns 97.4 percent of DLF into the league of the world's richest, giving them a net worth of more than $18 billion.
DLF is offering 10.26 percent of its equity, or 175 million shares, to the public in a price band of 500 rupees to 550 rupees. If all shares are subscribed, the company will raise between 87.5 billion rupees ($2.1 billion) and 96.25 billion rupees ($2.35 billion) depending on the cut off price.
"We are very, very confident of the response we will get," Singh told reporters. "Those who don't buy (DLF shares) today will realize they lost an opportunity to make money," he said.
The initial public offer of shares will open on June 11.
India's booming economy, which is growing close to 9 percent annually, has seen property prices soar in recent years, bringing windfall gains to companies like DLF that holds large land reserves on the outskirts of New Delhi and other major Indian cities and towns. Most of the land was bought from farmers at rates much lower than the current market price.
Although, the growth in the property market has slowed in recent months because of high prices and a series of interest rate hikes, most analysts and research groups feel the lull is temporary.
The housing shortage in the country is currently estimated at more than 20 million units, while demand for shops, malls and office space continues to outpace supply and has pushed prices of commercial real estate to record levels.
"People say there is an asset bubble (in the real estate). It's a figment of imagination," Singh said. "It's the sunrise industry."
With the mood in the stock market staying upbeat, analysts see DLF's IPO getting subscribed at the higher end of the price band.
"It will sail through easily," said Sujit Jain at Mumbai-based brokerage Pioneer Intermediaries. Jain said the pricing is actually lower than what the market had expected. Pioneer Intermediaries is not involved in the share sale.
A successful listing will make DLF a $23 billion company in terms of market capitalization, nearly twice that of its nearest rival Unitech Ltd., which is valued at about $12 billion.
With Singh and his family owning 87.4 percent of the company after the IPO, DLF's listing will add a new name to the Forbes' list of billionaires. Earlier this year, Forbes rated Mukesh Ambani, chairman of petroleum major Reliance Industries Ltd., as the richest resident Indian with a net worth of $20.1 billion. Ambani came 14 in Forbes' 2007 worldwide rankings.
DLF, the country's largest real estate firm in terms of the area it has developed, first tried to make a public offer last year, but scrapped the plans amid a stock market meltdown and disputes with minority shareholders.
The company plans to spend nearly 70 billion rupees ($1.7 billion) from the IPO proceeds on acquisition of more land and construction of ongoing projects, DLF said in a filing with stock market regulators. The rest would be used to pay up some loans before they mature, it said.
Singh's daughter, Pia Singh, who is a director on DLF's board, said the company is partnering with several international firms to scale up operations.
It has set up a joint venture with the U.S.-based Hilton Hotels Corp. to build a nationwide chain of budget hotels, she told reporters.
Under a similar partnership with Dubai-based real estate developer Nakheel, DLF plans to build two new towns in India, she said without elaborating.
Source://turkishdailynews.com.tr |
| posted by India Properties @ 4:22 AM |
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