Will HDIL Compete with Mukesh Ambani ?

We have reliably learnt from insiders on Dalal Street that Wadhawan group promoted Housing Development and Infrastructure (HDIL) has already received an in-principle approval from the state government for the special economic zone (SEZ) project. After Bandra-Kurla complex, the Maharashtra government is planning to develop the Kanjurmarg and Vasai-Virar regions as the next business districts, reports suggest.

This will be the second-largest special economic zone (SEZ) around Mumbai after Mukesh Ambani’s 25,000-acre development, which spreads from Navi Mumbai to Alibaug.

Holiday Inn - Bangalore International Airport

Brigade Enterprises has informed us that Brigade Hospitality Services, a 100% subsidiary of the company a Bangalore-based real estate company focusing on the development of residential, commercial and hospitality properties has signed a management contract with Inter Continental Hotels Group for a new Holiday Inn Hotel called Holiday Inn Bangalore International Airport. Earlier, Brigade Hospitality Services Pvt Ltd entered into a letter of intent on 27 April 2007 with IHG to manage a proposed hotel of approximately 250 keys to be developed near the Devanahalli International Airport at Bangalore.

Holiday Inn Bangalore International Airport will be developed by Brigade Enterprises Ltd and will be managed by IHG. Well connected to the new international airport. Holiday Inn Bangalore International Airport will be laced with around 250 rooms along with restaurants, swimming pool and a gymnasium. The Holiday Inn Bangalore International Airport will be slated to accept bookings by the beginning of year 2010.

DLF Akruti Pune bags BAI Universal Award 2007

DLF Akruti Info Parks (Pune), a joint venture SEZ project between Akruti City and DLF has bagged the prestigious Builders' Association of India [BAI] Universal Award 2007 for best equipped and mechanized site. In the present era, machines and mechanized part of the constructions run upto 35% of the entire project cost.

Since the last decade, the BAI has been instrumental in initiating awards for 'Well Built Structure' under various categories. The key objective of these awards is to create an awareness amongst construction professionals on the importance of quality, time and economy, thus helping industry in upgrading and innovating from current standards.

Akruti Developers Projects in Mumbai

We have an exclusive coverage about the ongoing and forthcoming projects from Akruti Constructions, a Mumbai based realty developer.
The expected realization from the above projects is as tabulated below [Rs / Sft]
Worli-Tardeo 30000-45000
Bandra & BKC 20000-30000
Andheri 12000-20000
Jogeshwari 8000-14000
Sion-Matunga 12000-18000

Other projects in Mumbai is as shown in the Map below.

Omaxe to Develop Kokapet, Hyderabad

North India's realty company Omaxe has won a bid to foray into the southern market starting at Hyderabad. The bid of Eden Buildcon [Omaxr's subsidiary] to develop land at Kokapet area in Hyderabad for residential and commercial purposes has been accepted by the Hyderabad Urban Development Authority (HUDA).

Omaxe said the project is expected to cost between Rs 1,600 crore and Rs 1800 crore. The company received the project for 25 acres of land in Hyderabad through an open auction-cum-sealed tender basis.

Realtor Moves to Jammu - Parsvnath

Parsvnath Developers, India's leading real estate company, is all set to come up with its maiden project in Jammu. The company has announced the launch of residential project, Parsvnath Passion duly approved by Jammu development authority (JDA) in the region with an approximate realization value of over Rs 100 crore in next three years including this financial year.

Parsvnath Passion is the first integrated group housing project being developed in Jammu by a national real estate player, situated over 11 acres of lush greens having a saleable area of over 7 lakh sq.ft, the project has 75 % of the total property area as open space for comfort and ease of its residents.

DLF denies Pantaloon space in South Point Mall

Pantaloon Retail India Ltd which is facing tremendous pressure from Dalal Street over slow growth in retail space, has pulled in India's largest realty company DLF Retail over possession of property at Gurgaon's South Point Mall.

Pantaloon Retail India Ltd had booked 110,000 sft space in South Point Mall 3 years ago and an agreement was also signed. In the interim, real estate prices sky rocketed and DLF known for cheating investors decided not to allow Pantaloon Retail occupy the space in the mall. Pantaloon Retail moved to the High Court of Delhi and has filed an injunction against DLF.

In the past 3 years, retail rentals are up by more than 70% and we shall wait to see if just will prevail or K.P.Singh's corrupt practices will rule.

Funding the Maha + Navi Mumbai SEZ

As on today only one thing is certain about the funding for Reliance Maha and Navi Mumbai SEZ. Jai Corp a manufacturing company promoted by Anand Jain's family will have a 10% stake in various segments of the SEZ. Here is what we have got to know.

The total cost of SEZs which includes land Acquisition and Development is estimated at Rs 22,800 crore [$5.5 Billion]. Jai Corp will invest Rs 2,280 crore.

Jai Corp is eligible to bid for International Airport, Metro Rail and Trans Harbour Sea Link. Developers for these projects is not yet finalized. Expansion of Rewas Port and establishment of a power plant to fulfill the needs of Mukesh's dream city :-) . A debt equity of 2:1 is assumed for the project.

When completed the Navi Mumbai and Maha Mumbai SEZ together are likely to be valued in Bear Case, Base Case and Bull case as follows - [$22.5Billion] or [$27 Billion] or [$29.5Billion] Stake holders in the project will get a fixed income of 10% of their investment as Income from asset management every year. This is just the valuation for SEZs excluding Airport, Power Plants, Ports etc.

Nitesh Estates + Citi to Scale new Highs

Bangalore based YoungTurk, Nitesh Shetty, Promoter of Nitesh Estates has roped in Citigroup for an ambitious $300 million retail roll out. Nitesh Estate will mark its presence with world class structures in the cities of Chennai, Kochi, Thiruvananthpuram and ofcourse Bangalore.

In Bangalore, the company is building a 800,000 sft mall in Indiranagar and 200,000 sft of serviced apartments. This project is just off the 50+ International retailers landmark @ Indiranagar just off the 100 ft road. The company has roped in Seattle,WA based architects for the design of the mall.

The JV company is also developing a 350,000 sft mall on Boat Club road in Chennai. The projects in Thiruvananthpuram and Kochi will be around 600,000 sft and 300,000 sft respectively.

Parsvnath's Gem and Jewelley, Jaipur SEZ

Parsvnath Developers has told us that they have signed a Memorandum of Understanding (MoU) by the company's subsidiary viz. Parsvnath SEZ Ltd(PSL), with Government of Rajasthan to develop 112 acres SEZ in Jaipur. The SEZ envisage an investment of Rs 1400 crore and will focus on giving a further boost to gems and jewellery industry.

The MoU entails that the State will provide necessary support for infrastructure facilities in SEZ. The agreement will also ensure smooth implementation towards the development of the SEZ by providing single Window Service through the Bureau of Investment Promotion (BIP). It will also help PSL to avail various incentives and facilities under various schemes announced by the State / Central Government, which will ensure that its development remains on the fast track.

Navi-Maha Mumbai SEZ - Maps

Mumbai, the financial hub of India is located that it can neither grow North nor South, hence the development started moving towards east[Navi Mumbai] and then Mukesh Ambani wants to extend it south-east so that he can still touch base with Mumbai.Mukesh Ambani bought controlling stake in short sighted Nikhil Gandhi's Navi Mumbai SEZ as well in his company Sea King Infrastructure Ltd (SKIL). Reliance also wants to extent the same and here is the map of Navi Mumbai SEZ.Unsatisfied with the tiny area of Navi Mumbai and scaling global ambitions of Mukesh and Anand Jain, made them propose the Reliance Maha Mumbai SEZ as shown below.
According to insiders, Reliance Maha Mumbai SEZ will challenge the Chinese supremacy of Shenzhen and HongKong. Connecting to the financial districts of Mumbai [Dalal Street] from SEZ is so important that here is the proposed SEA Link which Reliance wants to build. In our next issue [December-8th] we will cover the investments that are going into Reliance SEZ. Questions, Comments and Critics are most welcome.