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| India Unilever shares up on property sale report |
| Tuesday, July 24, 2007 |
Shares in India's top consumer goods maker, Hindustan Unilever Ltd. (HLL.BO: Quote, Profile , Research), rose more than 2 percent on Wednesday on speculation it was selling some of its prime properties, but the company denied it was doing so.
The company has begun the process of selling some of its real estate assets, including its Mumbai headquarters and some residential assets, the Economic Times reported.
It said Hindustan Unilever was likely to earn big gains on sales of its properties in Mumbai and Bangalore, where real estate prices have surged.
A spokesman for the company said the report was wrong.
"The speculation that we've initiated a process to sell India properties across is wrong," he said.
"We do assess options for our idle assets, but that is on an ongoing basis, and there is no separate process that we have initiated for them," he said, referring to the report that said the company was assessing options with property developers.
Shares in the company, 52-percent owned by Anglo-Dutch Unilever Plc (ULVR.L: Quote, Profile , Research) (UNc.AS: Quote, Profile , Research), rose as much as 2.2 percent in early deals and were up 1.3 percent at 202.30 rupees at 0605 GMT.
Hindustan Unilever has been divesting some smaller units to focus on its core portfolio, which includes Lux soap, Surf detergent, Lipton tea and Wall's ice-cream.
The company is forecast to report on Sunday a 14 percent increase in its April-June net profit to 4.36 billion rupees ($108 million). For the poll, please double-click on [ID:nBOM187887].
Its board will also consider its first-ever buyback of shares, which analysts expect will be up to 1.5 percent of its outstanding equity, or 33.15 million shares.
"There is a positive sentiment around the stock because of the buyback, and talk about the company selling some properties is boosting that sentiment," said a trader. ($1=40.3 rupees) |
posted by India Properties @ 11:40 PM  |
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| Commercial rentals at all-time high in Delhi |
| Wednesday, July 11, 2007 |
In the last couple of months, rentals of central and suburban business districts of Delhi (CBD & SBD), comprising areas such as Connaught Place and Nehru Place, have touched all time highs. On the other hand, for the first time in the last half a decade or so, commercial rentals in the satellite towns, comprising Noida, Gurgaon and Faridabad, are showing signs of a slowdown in growth. Experts are at-tributing this slowdown to mainly two factors—an over supply of commercial space in the satellite towns and the impending develop-ment of a new SBD in Delhi itself, at Jasola.
Rentals in the CBD are about Rs 325 per sq ft per month now, and have gone up by 7-8% quarter on quarter (q-o-q) basis and by 50-80% on year on year (y-o-y) basis.
In the SBD, rentals have witnessed a considerable increase of about 15-20% q-o-q and 50-70% y-o-y and is close to Rs 250 per square feet per month. In case of the satellite towns of Noida and Gurgaon—at about Rs 40-50 per square feet per month and Rs 100 per square feet per month, respectively—rentals have remained stable q-o-q and have increased by 30-40% y-o-y.
Going forward, there could also be correction in certain NCR markets. For instance, in case of Noida the total commercial supply estimated in 2007 is about 5.6 million square feet.
According to a report by real estate consultancy DTZ, “this is far in excess to the projected absorption of 3.3 million square feet and, hence rentals should fall or, at best, remain stable.”
“In the next 5-6 months, we expect the growth in rentals to stabilise. In some cases, there could be minor corrections as well,” says DTZ India director Vivek Dahiya. According to brokerage firm Realty Realtors MD Harinder Singh, the overall growth in the Delhi and NCR rental market in the next one year will be about 20%, as against a 50-60% growth registered over the last one year.
On the other hand, Jasola in South Delhi is expected to see develop-ment of slightly over 2 million square feet of commercial space, almost 75% of which has already been booked. Prominent companies in the area include DLF, developing 7 lakh square feet property, TDI with about 1.5 lakh square feet space, and Omaxe with 1.5 lakh square feet property.
The Delhi Development Authority (DDA) is likely to auction some more commercial plots in Jasola later this year.“Jasola will attract much more interest from MNCs as well as retail chains as compared to the neighbouring Noida or any other satellite town in the NCR, because of being situated in Delhi. Proximity to some posh locations of south Delhi, Noida and Faridabad will act as a further catalyst to the demand,” says TDI MD
According to Omaxe chairman Rohtas Goel, this slowdown will only be a temporary phenomenon. “While a lot of commercial activities will gradually shift to areas inside Delhi, such as Jasola, the feared over supply in the satellite towns will also only last till one year and will get absorbed. There will obviously be minor corrections,” he said.
Resource:indiatimes.com |
| posted by India Properties @ 11:53 PM |
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| DLF listing to double market cap of real estate sector |
| Thursday, July 5, 2007 |
Market capitalization of the real estate sector in India will more than double, from Rs80,343 crore to Rs1.7 trillion, even if the Delhi-based realtor DLF Ltd stock gets listed on Thursday at its issue price of Rs525 a share.
Following this, the real estate sector’s market cap on the Bombay Stock Exchange (BSE) will jump from 1.9% of the total market cap of BSE to 3.94%. The exchange does not have any index for this sector. Neither does Sensex have any representation from the real estate sector.
A comparison with the emerging markets of Brazil, Russia and China shows that the share of real estate in the Indian market will be almost double that of Brazil and one and a half times of China.
The market share of listed real estate companies is 2.13% in Brazil and 2.63% in China. In Russia, where only five real estate companies are listed, it is 0.08% of the total market cap.
Mint’s research took into account only those companies that are in the real estate development business and excluded real estate-related financial offerings such as real estate investment trusts (Reits) that account for a significant percentage of the markets in Singapore and Brazil.
In India, Reits do not exist by law.
Worldwide, the real estate market grew from $368 billion (Rs15 trillion) in 2002 to $1.2 trillion in 2006. Of this, $651 billion was in Reits and $563 billion was in non-Reits. In 2002, comparable figures stood at $211 billion for Reits and $157 Billion for non-Reits.
Among Asian markets, property stocks have higher weightage on the index in Hong Kong.
The real estate stocks there account for 10.83 % of the total market cap. In Singapore it is 12%, Taiwan 11.5% and Thailand 6.5%. In Japan, however, property stocks are 3.09% of the total market cap and in Indonesia it is 3.6%.
Analysts have pointed out that the doubling of the market cap of Indian real estate stocks would send a positive signal to investors worldwide that the Indian markets have come of age.
Concurs Anuj Puri, chairman, Jones Lang Lasalle-Meghraj, a real estate advisory: “It will send out a positive signal to the international developers that real estate in India is no longer a small ticket business. It will attract the big developers in Europe to India.”
So far, two of the biggest developers from the US, Tishman Speyers and Hines, have set up India offices but European firms have typically stayed away from India.
Yash Gupta, joint managing director of Hines’ India operations, said: “The DLF issue shows the belief of the mature investor in the sector and the India story.”
Not everyone believes the sector is anywhere close to having the impact that it does on other developed stock markets.
Ashish Kalra, managing director, Trinity Capital Llc., believes the Indian real estate market has a long way to go before it reaches the volumes that drives the US and other mature markets.
Source:livemint.com |
| posted by India Properties @ 3:47 AM |
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