DLF gets 11.76-acre Gurgaon plot with record Rs 1,496 crore bid

dlf newsIn a closely contested auction, DLFBSE 1.19 % has emerged as the highest bidder for a land parcel put by Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) spread over 11.76 acres in Gurgaon for a record Rs 1496 crore, said three persons familiar with the development.

The company is expected to pay an additional Rs 143 crore for Transit-Oriented-Development rights. DLF will also have to pay Rs 120 crore for registration of the land parcel, taking the total deal value to Rs 1,759 crore, against the reserve price for the land parcel that was set at around Rs 686 crore.

This is an unprecedented price for a land parcel in the National Capital Region. The deal concluded through an e-auction on Monday night, at a base price of over Rs 127 crore per acre, has surpassed all earlier benchmarks.

DLF and Bharti Realty had emerged as the contenders in the final round out of more than half a dozen developers, including Indiabulls Real Estate, Experion Developers, Emaar Group, Embassy Group and RMZ showing interest in this land parcel.

The second highest bid made by Bharti Realty stood at Rs 1,446 crore.

An HSIIDC official, who requested anonymity, confirmed that a subsidiary company of DLF has emerged as the highest bidder with Rs 1,496 crore. An email sent to DLF remained unanswered till the time of going to press on Tuesday.

As per the bid terms, the allotment letter for the said land parcel will be issued to Aadarshini Real Estate Developers, subsidiary of DLF Home Developers upon payment of 10% of the quoted amount. The balance amount can be paid in installments as per the terms of bid document, DLF said in a regulatory filing.

In November, global home furnishing company Ikea had bought a 10-acre land parcel in Gurgaon for Rs 842 crore through an e-auction conducted by HUDA, the Haryana government’s development agency. The land parcel is located on NH8 behind Oberoi Hotel in Guragaon, and has the potential to develop both commercial and retail spaces.

“This is an extension of the established DLF Cyber City micro market and the deal reconfirms DLF’s long–term commitment to retain control over this NH8 cyber city micro market in terms of pricing, supply and occupier profile,” said Ankur Srivastava, chairman, GenReal Property Advisors. “It allows DLF to revalue its undeveloped FSI in this micro market while using this auction as a benchmark.”

“This is an extension of the established DLF Cyber City micro market and the deal reconfirms DLF’s long–term commitment to retain control over this NH8 cyber city micro market in terms of pricing, supply and occupier profile,” said Ankur Srivastava, chairman, GenReal Property Advisors. “It allows DLF to revalue its undeveloped FSI in this micro market while using this auction as a benchmark.”

The said 11.76 acre land parcel has a leasable potential of around 2.3 million sq ft. The plot has base floor space index of 1.75 times, which would get double to 3.5 times after factoring the benefit of Transit Oriented Development (TOD) rights.

DLF is expected to push this development into DLF Cyber City Developers Ltd (DCCDL), its joint venture with Singapore sovereign fund GIC. Promoters of DLF have sold their 33.34% stake in its rental arm DLF Cyber City Developers Ltd (DCCDL) to GIC for Rs 8,956 crore. The transaction was concluded on December 26, and the company now holds the balance 66.66% in DCCDL.

Currently, the rental arm’s portfolio includes leased space of 27 million sq ft and nearly 4 million sq ft under construction. The joint entity also has access to land bank that has additional development potential of 19 million sq ft.

According to industry experts, the successful bidder will have to lease spaces in proposed development on this plot in the range of Rs 150 to Rs 160 per sq ft a month to achieve a breakeven, given the high amount of bid. Currently, office space lease rentals in this vicinity are around Rs 110 per sq ft and a right mix of retail and commercial development may help the company fetch the expected average lease rentals.

Source : http://bit.ly/2GP5QOr


Dwarka E-Way Connector to Get Extra Lanes

GURUGRAM: MCG will be converting the stretch connecting Daulatabad flyover and Dwarka expressway into a four-lane road to ease traffic congestion on the route. The move will bring relief to hundreds of residents living in sectors along the expressway and areas such as Rajinder Park and Daulatabad.

Dwarka Expressway Four lane road

dwarka expressway four-lane road

“This junction has always faced problems in terms of traffic congestion during peak hours. We have often received complaints regarding the traffic mess at this point and hence, we are making some changes in order to cut down on the snarls on the route,” a senior MCG official told TOI on Saturday.

According to officials, the tendering process for the work has started and an estimated Rs 4.5 crore has been sanctioned by Chandigarh for the project.

The work on the project is expected to be completed in the coming year. There is a one km stretch between Daulatabad flyover and Dwarka Expressway. The widening of this stretch will be a big relief to people living in the new sectors along the expressway, including sectors 109, 110, 103 and 106, since in the absence of another approach road, they take this route.dwarka xway latest news

“The area has a lot of societies and there are no proper roads and the approach from Daulatabad is almost always congested. The road widening project would bring some relief for the people living in the area,” said Sushil Kumar, a resident of Sector 109.
Additionally, the service lanes along the Daulatabad flyover will also be widened to streamline the traffic under the flyover.

A slip road will also be built near the entry point of the flyover that will take the traffic directly from Daulatabad to Rajinder Park residential area.

“The widening of the service lane and construction of the slip road will benefit residents in areas such as Rajinder Park, Vishnu Garden, Mahalakshmi Garden, Jai Vihar and Daulatabad Industrial Area,” said another MCG official.

Source : https://goo.gl/7yaADh

Commercial realty business in India rebounds

The year 2015 marked a turnaround for India’s commercial real estate as steady economic growth and renewed corporate confidence, especially among ecommerce and IT companies, propelled transactions to the second-highest level in terms of area.

After over three years of weakness, total purchases and leases of office space in the top eight property markets rose to 35 million square feet during 2015. Net commercial real estate transactions by companies rose 17.1% from a year ago.

In 2011, a record 37 million sq. ft.of office space was taken up as rents eased after the global financial crisis. This time, however, it was the result of companies implementing growth plans, according to a report by property consultant Jones Lang LaSalle (JLL) India.

“During the year, office space demand was mainly driven by information technology IT enabled services, ecommerce, startups and large consulting firms,” said Anuj Puri, chairman at JLL India. “Players in many other sectors like fast moving consumer goods, banking, financial services and insurance, manufacturing, telecom and pharma did not come into the market – however, this should happen in 2016 and 2017. Next year will also see demand for built to-suit properties, especially from the larger IT occupiers.”

Commercial space transactions were distributed across new and old buildings in 2015, compared with largely newly completed buildings in 2011. There was a pick-up in large transactions this year, led by Flipkart, which leased 2 million sq. ft. of a custom-built office campus in Bengaluru, and Tata Consultancy Services, which rented over 2 million sq. ft. of built-to-suit space at Hiranandani Estate in Thane for 15 years.

Among purchases, pharma major Abbott IndiaBSE 1.38 % bought 5 lakh sq. ft. of space at Godrej Properties’ commercial project in Mumbai’s Bandra-Kurla Complex for about Rs 1,479 crore. A revival of momentum in commercial realty is an indicator of the economy’s health and augurs well for job creation. Deals by both investors and occupiers suggest that sentiment is improving for the office property market.

The pan-India vacancy level still stands at 16%, although the `realistic’ availability is actually 8-9% because total supply is not always relevant for corporate entities, he said. Many occupiers do not consider Grade-A buildings with multiple owners or those located in areas with inherent disadvantages and connectivity issues. Cities such as Pune, Bengaluru, Hyderabad and Chennai have a vacancy rate of 5-10% and would need fresh supply to meet growing demand, the report said.

Rental growth across Indian cities was steady, with Pune leading the pack with an 8.4% rise. This was followed by a 5.3% increase in average rentals in Bengaluru, 3% in the National Capital Region (NCR) and 1% in the Mumbai Metropolitan Region.

Source: CredaiNCR.Org


Commercial space worth $15-20 billion eligible for REITs in 2-3 yrs

Nearly 80-100 million sqft of commercial space worth USD 15-20 billion are eligible for Real Estate Investment Trusts (REITs) in the next 2-3 years, a recent survey said. According to the survey by KPMG, India potentially has about 375 million sqft of Grade-A office space which is valued at USD 65-70 billion.

Out of this, 80-100 million sqft is estimated to be eligible for REITs in the coming 2-3 years and would be valued at USD 15-20 billion. “REITs pose a large opportunity in the Indian real estate market which is backed by growing economy and more importantly by a large existing Grade-A commercial portfolio,” KPMG said.

The report said in 2015 and 2016 nearly 52.6 million sqft and 57.1 million sqft, respectively, of commercial space is expected to be added. “Most of the Grade-A properties, which will be added in the two years, will be concentrated in seven major cities like including Delhi NCR, Mumbai, Bengaluru, Chennai, Pune, Kolkata and Hyderabad,” it said.

Apart from the Grade-A office spaces, there are other commercial assets such as shopping centers, hospitality and industrial warehouses which might come under the purview of ‘REIT-able’ space, thereby presenting a potential for increasing the overall stock, it said.

KPMG noted that REITs would not address the liquidity challenges faced by developers but are expected to help streamline the sector by creating a transparent mechanism for raising finance in the market as it would be governed by SEBI guidelines which would help in maintaining transparency and their accountability.

The agency, however, noted that certain amendments in the taxation and regulatory aspects of REITs are required, which would further enhance the attractiveness of Indian REITs for global investors.

Source: CredaiNCR.Org


Land records to soon be put online

The additional chief secretary and financial commissioner of revenue department, Dalip Singh, on September 11 said that land records will soon be made available on http://www.jamabandi.nic.in.

Singh was speaking at a function organized to lay the foundation stone for a new office building for the revenue department at Jharsa Road.rnrn”Since land has become costly in Haryana, it has gained importance and is considered wealth, so its proper maintenance is necessary. The land records are in the process of being made available online. Anybody can see the record on http://www.jamabandi.nic.in,” he said.

He added that a system was being devised under which the data will be uploaded on the website as soon as the sale deed is registered. Under this system, fraud in land deals could be checked to a large extent, said Singh.

Singh further said that he had directed revenue officials to clear pending mutations in a time-bound manner and said the deputy commissioner has prepared a schedule for it. He said that Tehsil areas in Gurgaon and Faridabad could be further divided as uploading of data in the two districts has been slow due to the large number of transactions.

He also said that in order to solve the problem of lack of government accommodation for employees of the revenue department, forming a housing corporation within the department was being considered.

Source: CredaiNCR.Org