Govt extends Metro line to Najafgarh in Phase-III
The Times of India (Delhi edition)
It’s official. On Monday, chief minister Sheila Dikshit announced in the House that the government would include a corridor from Dwarka Mor to Najafgarh as part of MetroPhase-III. The corridor, which will be about 5-6 km long, will connect outer Delhi with the heart of the city. Officials in the department added that Delhi Metro Rail Corporation (DMRC) had been asked to prepare a detailed project report (DPR) for the corridor. “Delhi Metro Phase-III will be extended from the existing 105km that it will cover with this addition,” said an official.
Infra-heavy budget for Noida
The three development authorities in Noida, Greater Noida and Yamuna Expressway will table their budgets on Tuesday. The total amount is Rs 17,000 crore. The share of Noida, Greater Noida and Yamuna Expressway will be Rs 6,000 crore, Rs 5,000 crore and Rs 6,000 crore respectively. The budgets will be tabled during the last board meeting of the three authorities for this fiscal year. It is likely that Greater Noida and Yamuna Expressway authorities may hike plot rates.
The Metro extension in Noida will also be discussed during the board meeting. Noida will spend the amount on construction of three elevated roads, three flyovers, five underpasses and other infrastructure projects.
3i India Infrastructure Fund, an investment fund set up by global private equity firm 3i Group, has picked up a minority equity stake in KMC Infratech (KMCIL), a road projects subsidiary of the Hyderabad-based infrastructure firm KMC Constructions (KMCCL) for Rs 500 crore. M. Goutham Reddy, director of KMCCL, said this is one of the largest investments in the Indian road sector, which enables the company to improve its pre-qualifications significantly. Refusing to quantify the equity stake offered to 3i India Infrastructure, he said, “It is a minority stake and is linked to performance.”
Real Estate News
Australian Company Raises its Stake Beyond 5% in Unitech
Indian Realty News
Australia’s Platinum Investment Management has raised its stake in India’s second largest real estate firm Unitech to 5.16%. Platinum Investment Management has acquired 60,56,100 equity shares of Unitech, which is equal to 0.23% of the total paid up capital of Unitech, the realty firm said in a filing on the Bombay Stock Exchange. Before this open market transaction, Platinum had 4.93% stake in Unitech, the filing added. The promoters have 48.57% stake in Unitech.
Share of Unitech today closed at Rs 39.30 on the BSE, down 2.48% from its previous close. At the current rate, 60,56,100 shares would have cost nearly Rs 24 crore. Gurgaon-based Unitech has about 10,000 acres of land bank mainly in Noida, Greater Noida and Gurgaon. It is present in almost all the verticals of real estate including housing, retail, offices and hotels. The company has recently announced that it would launch 10 million sq ft of area in the next three months.
Mumbai Real Estate Sector can witness Oversupply in 2012-13: Jones Lang LaSalle
Indian Realty News
Mumbai’s residential market is predicted to witness a glut in 2012-13 owing to steady new launches at a time when sales are extremely slow, according to real estate consultancy Jones Lang LaSalle. “The overall sentiments of the market and the consistent rate of new project launches in Mumbai give a clear indication of an impending oversupply by 2012. A lot of developers in the most severely affected locations are currently open to closing sales at lower rates,” said a note by JLL.
It points out that bouncing back from the economic slowdown-induced realty slump in Mumbai in early 2009, the rates started rising swiftly until the end of 2010. During this period, a total of Rs 20,000 crore was pumped into land acquisition by developers in Mumbai, Delhi and Bangalore. Of this, Rs 12,000 crore was spent in Mumbai alone, leading to high land valuations and inflated rates.
Hospitality Major Hyatt Optimistic on Plans to Open Five Hotels in Collaboration with DB Realty
Indian Realty News
Chicago-headquartered Hyatt Hotels Corporation, one of the world’s biggest hotel chains, is going ahead with plans of opening five hotels with the Mumbai-based DB Group. The latter is presently embroiled in the 2G telecom spectrum scam, its managing director, Shahid Balwa, having been arrested (he had resigned after this took place last month). DB Hospitality is building five premium properties in Mumbai, Pune, Mundra (Gujarat) and Goa. These will be handed over to Hyatt for management, upon completion.
Steve Haggerty, global head, real estate and development, Hyatt Hotels Corporation, said, “The plan is intact. The hotels we intended to do with DB Hospitality, we still plan to open, and they remain in the pipeline. We have no further comment or information to share. We cannot really comment on what has happened with DB Realty.”
“We have taken no action so as far as our role and our position is concerned, it hasn’t changed. All the signed projects with DB Hospitality are in various stages of development. We expect to open Goa this year and construction on Pune is quite advanced,” Haggerty told Business Standard.