18 July 2018

Table of Contents for Ticker Tape

Ticker Tape: Construction

L&T Construction to build a bridge across Krishna River in AP


The construction arm of Mumbai-based Larsen & Toubro Ltd (L&T) recently announced that it will construct an iconic bridge across the river Krishna at Amaravati, Andhra Pradesh. The work includes design and construction of a 3.2 km, six-lane iconic bridge across the river Krishna, which includes 2.72 km of approach bridges, on EPC basis. The bridge will connect Pavitrasangamam in Vijayawada and N10 Road in Amaravati. The Rs. 1,387 crore project was received from Amaravati development Corporation Ltd (ADCL) and L&T has also been entrusted with the operation & maintenance for the bridge for 5 years.




Revised MIG Norms expected to boost Affordable Housing Under PMAY


The Ministry of Housing and Urban Affairs has revised the carpet area for houses under the Middle Income Group (MIG) category for interest subsidy under the credit linked subsidy scheme (CLSS) of Pradhan Mantri Awas Yojana (urban).  The carpet area for MIG I has been revised upwards form 120 sq metre to 160 sq m while for MIG II it has been revised from 150 sq m to 200 sq mt.


This initiative is expected to result in enhanced economic activity that would contribute to improvement in the demand side. Apart from increasing the number of beneficiaries, the increase in carpet area will improve the construction activity and will assist in moving the housing sector forward.The increased construction activity in housing sector has a cascading effect on core sectors like cement, steel, machinery and other allied sectors. More construction activity in the urban areas would result in creation of more jobs for both skilled and unskilled workers.




Ajmera Realty Acquires 5.5 Acres of Land at Electronic City-2


Ajmera Realty has acquired 5.5 acres of land at Electronic City-2, Bengaluru through its wholly owned subsidiary. This land has the potential to develop 5.5 lakh sq ft of built up space and generate revenue of about `300 cr in three years. All statutory approvals are in place and this project may be launched by next quarter. Last week Ajmera Realty had launched a project of 7Lakhs Sq.ft. In addition to that, now the total area under development in Bengaluru, along with the existing projects is approx.14 Lakhs sq. ft., which will generate revenue of `700 crores approx, over a period of 3 to 4 years.




Embassy Group wins recognition


Embassy Group, Bengaluru-based real estate developer, has been recognised as brand leader in both the commercial office and hospitality segments in India.An annual Brand Perception Audit Report by Track2Realty, an independent Research venture, conducted a comprehensive survey on the Real Estate sector in India. This is the second consecutive year that the Embassy Group has won the top spot for the Office segment, while the ranking in the Hospitality segment has risen from sixth position to the prime spot over the past three years reflecting the growth in the Embassy Hospitality business with Hilton, Four Seasons and Le Meridien brands coming into the Embassy Group stable. The company has also been recognised as The Best Employer in the Real Estate sector while Embassy’s CSR activities were recognised as number 2 on a pan India-basis.




Runwal Group to buy RMI land in Mumbai for Rs 180 cr


Mumbai based luxury real estate company Runwal Group is set to buy over 2.7 acres land parcel of Rashtriya Metal Industries (RMI) at Andheri for a consideration about Rs 180 crore. Reports suggest that Runwal has signed a memorandum of understanding with RMI to buy the land parcel that houses RMI's office and factory. The company, which is present in luxury residential, townships and commercial spaces, is planning to develop this plot as a mixed-use development project.




Smart Cities Mission is still very much a work in progress


The Narendra Modi government on June 25, 2015, unveiled with much fanfare the Smart Cities Mission (SCM), one of its marquee initiatives aimed at upgrading 100 cities. The Union government agreed to give each of the cities Rs 100 crore every year for five years, with an equal contribution coming from the state government and the urban local body combined. SMC is carried out through a special purpose vehicle (SPV), registered under the Companies Act, 2013, instead of through a corporation, and also encourages private investment.


Among the projects in SCM are affordable housing, integrated multi-modal transport, creation and preservation of open spaces, and waste and traffic management, among others. The projects focus either on a particular area of the city or the entire city.




Temasek, Ascendas-Singbridge Group commit `2,000-cr investment in logistics, industrial real estate in India


Ascendas-Singbridge has launched Ascendas India Logistics Programme wherein Temasek, a global investment company headquartered in Singapore, is a principal investor in the programme. Temasek and Ascendas-Singbridge Group have jointly committed Rs 2,000 crore (Singapore $400 million) for investment in logistics and industrial real estate in key locations in India. The commitment of capital for the programme follows the recent establishment of Ascendas-Firstspace, a joint venture between Ascendas-Singbridge and Firstspace Realty, to deliver logistics and industrial facilities across major warehousing and manufacturing hubs in India. Tapping into India’s growing logistics sector, the programme will invest in projects in key warehousing and manufacturing hubs in Mumbai, the National Capital Region, Pune, Chennai, Bengaluru, and Ahmedabad, among others. The programme targets to develop a portfolio of 13 to 15 million sq ft of space. To date, it has two seed assets with 1.25 million sq ft of operational space and over 4 million sq ft in development potential.




Godrej Properties raises `1,000 crore from GIC-managed firm


Realty firm Godrej Properties Ltd recently decalred that it has raised Rs 1,000 crore through issue of preferential shares to a GIC-managed investment firm. In a filing to the BSE, Godrej Properties said that an allotment committee of the board of directors has allotted 12,765,000 equity shares to GAMNAT Pte Ltd on preferential basis at the price of `783.50 per equity share. Godrej Properties, the real estate arm of Godrej group, is currently developing residential, commercial and township projects spread across 151 million square feet in 12 cities.




Allcargo arm Avvashya Logistics to invest `400 cr to expand warehouse capacity


Avvashya CCI Logistics Pvt Ltd, a unit of Mumbai-listed Allcargo Logistics Ltd, will invest Rs 400 crore by 2022 to expand its warehousing capacity to 10 million sq ft as the Goods and Services Tax regime drives consolidation in the logistics industry, as per media reports. The expansion will focus on three key areas: Speciality chemicals, retail associated with e-commerce and auto engineering. While auto will continue to remain a key focus area for the company with plans to enhance penetration by increasing services, the growth will be more in retail where the industry has been growing at a compounded annual growth rate (CAGR) of 30-34 per cent.




Shriram EPC posts Q4 profit of Rs 87 lakh


Shriram EPC returned to profitability in 2017-18, posting a fourth quarter standalone net profit of `87 lakh, compared to a net loss of Rs12 crore in 2016-17. For the full year ended March 31, 2018, the company posted a net profit of Rs 11 crore against a net loss of  Rs151 crore. After resolving the ongoing dispute with a customer in Basra, Iraq, the order of $230 million has been restored to the  JV This order will be executed by the JV over the next three years, in partnership with a local Iraqi company.With the resolution of the dispute, the ongoing implementation of other overseas contracts, along with the continued focus of the Indian government on infrastructure development, the company will be in a position to build upon its growth and performance, going forward, as per the company.




AP, Singapore sign pacts for Amaravati development


The Andhra Pradesh government and Singapore signed several pacts recently for the development of the new capital, Amaravati. The papers were signed and exchanged by senior officials of the State government and Singapore in the presence of Chief Minister N Chandrababu Naidu and Singapore Trade Minister S Iswaran. The 1,691 acre land parcel will be handed over in three phases — 660 acres in the first phase — to the Singapore companies for infrastructure development and other promotional activities. Iswaran said Singapore would join hands with the State government not only in building the new capital, Amaravati, but in various other activities such skill development, institution building, industrial development and agri business.





JK Cements Sets Up Additional Capacity for Wall Putty


JK Cements has planned to set up Additional Capacity for Wall PuttyJK Cement has successfully implemented additional installed capacity of 2 lakh tonnes per annum of white cement based wall putty at JK White in Katna District of Madhya Pradesh.  Commercial dispatches began on June 6 and thereby installed capacity at Katni has risen to 4 lakh tonnes per annum. Total capacity for white cement based wall putty ahs risen to 9 lakh tonnes per annum.




Cidco expects over `500 cr from sale of 1.3 hectares


Navi Mumbai town planning authority Cidco, which has put nearly 1.3 hectares of land on the block, is expecting four times the base price or over Rs 500 crore from its sale, with several infrastructure projects coming up in and around Nerul. City and Industrial Development Corporation (Cidco) recently invited bids for the lease of 1.3 hectares or 13,619.47 sq mt of plot at sector 19A for residential and commercial development quoting a base price of `95,461 per sq mt. Cidco is currently promoting Nerul, along with other centres like Vashi and Belapur, as an iconic node, offering a floor space index of 1.5 for the mix-use development.




Mirae Asset Global to launch $100 million AIF in India


South Korea’s Mirae Asset Global Investments Co. Ltd is set to launch a $100 million alternate investment fund (AIF) in India primarily to invest in residential projects. The company had announced its plans to enter the Indian real estate market last year, and had subsequently got the approval from the Securities and Exchange Board of India (Sebi) to launch the Mirae Asset Credit Opportunities fund.The fund will focus on residential projects across Mumbai, Bengaluru, NCR, Pune, Chennai and Hyderabad, and is likely to be deployed within the next 18 months.




LTI Announces Digital Engg & Construction Solution Based on SAP Cloud Platform


Mumbai-based Larsen & Toubro Infotech Ltd (LTI), a global technology consulting and digital solutions company, recently announced the availability of its Digital Engineering & Construction Solution for Engineering, Construction and Operations (EC&O) companies. According to the company, the preconfigured solution for SAP S/4HANA opens up an array of digital transformation opportunities for asset-intensive industries like Engineering & Construction, Heavy Engineering and large projects-based organizations.




Indiabulls realty arm to transfer 24 acres in Panvel to MMRDA


A unit of property developer Indiabulls Real Estate has planned to transfer a 24-acre land parcel in Panvel near Mumbai to the Mumbai Metropolitan Region Development Authority (MMRDA) as part of the town planner’s rental home project under the affordable housing scheme. The Indiabulls Real Estate subsidiary involved in the deal is Lucina Land Development. The builder has already constructed 4,834 affordable homes, along with related amenities, and these units have been handed over to the authority under the MMRDA Rental Housing Scheme. This constitutes over 1.28 million sq ft of development — completed in accordance with the prescribed specifications of the town planner. These units have been allotted to millworkers by MMRDA, and are expected to be handed over to them soon. Based on the Maharashtra State Housing Policy of 2007, the rental housing scheme was initially introduced by the state government in 2009 to allow participation of private sector developers and aimed at reducing the slum clusters. A few developers have also received sanctions for their projects under this scheme in extended suburbs such as Virar, Thane and Karjat.




MHADA to redevelop 122 BDD chawls in Worli


The Maharashtra Housing and Area Development Authority (MHADA) has allotted the tender to the Tata-led consortium for redevelopment of the Bombay Development Directorate (BDD) chawl.At least 122 BDD chawls, located in Worli, will be redeveloped under this project. The authority had received bids from three consortiums for the project. The plan involves redevelopment of 122 BDD chawls in Worli, for which the project cost is estimated at Rs10,700 crore. Tata Projects Limited and Capacite Infraprojects were the last to submit their bids. The Tata-led consortium quoted the lowest price, at `49,617 per square metre, while the remaining two consortiums, led by Arabian Construction Company Limited and ACC quoted ` 53,810 per square metre.




Omaxe sells properties worth Rs 1,228 cr in FY18


Realty firm Omaxe Ltd declared that its sales booking rose by 30 per cent to Rs 1,228 crore last fiscal on higher volumes even as the company's average sales realisation dropped. According to an investors presentation, the company sold 4.98 million sq ft space last fiscal, up 56 per cent from 2016-17. In terms of value, sales booking increased to Rs 1,228 crore in 2017-18 from Rs 946 crore in the previous fiscal. Out of total sales, housing segment contributed Rs 918 crore while the commercial space accounted for Rs 310 crore. Its income from operations rose by 9 per cent to Rs 490.70 crore for the quarter ended March as compared to Rs 451.92 crore in the corresponding period of the previous year. On an annual basis, Omaxe's net profit dropped to Rs 83 crore during the last fiscal from `105 crore in the previous year but turnover went up to Rs 1,898 crore from Rs1,686 crore. With about 110.8 million sq ft of delivered space in both real estate and construction contracting, the company is currently undertaking 19 real estate projects - four group housing, nine townships and six commercial.




Ficci report blames poor planning for the shortage


To make AHFCs more inclusive, there is a need to increase affordability, expand opportunities to un-/underserved markets and foster the affordable housing finance market, a report by FICCI suggested. As per the report, rapid urbanisation and the lack of planning for affordable housing have led to a shortage of 10–12 million urban homes. Around 26–37 million urban households — predominantly in low income and EWS category — reside in informal housing, often in poor conditions. According to the report, there are 26 affordable housing finance companies providing loans and the outstanding loan portfolio as of December, 2017 is over Rs 27,000 crore and over 2,30,000 houses financed. On the other hand, in 2013, there were 10 AHFCs with a Rs 1,000- crore portfolio.




Sowparnika Introduces First of its Kind Homes in Realty Segment


Sowparnika Projects and Infrastructure Pvt. Ltd has introduced  'Positive Homes' a unique proposition designed and developed based on new age customers demand. Positive Homes comes with and uncompromising features and fixtures and price that is unheard of, all-inclusive price of around `10 lakhs for a Studio. The over 3 Lakhs sq ft of 1st Positive Homes series is expected to be completed in record time of two years, this is a result of Sowparnika's innovative model developed through experience gained over 15 years from projects across Karnataka, Kerala and Tamil Nadu. The city experiences influx of around 8 Lakh people every year and most of them are the 1st job seekers, first time entrepreneurs and even job shifters crowd. There is a study which establishes the fact that buying home is the first in the wish list of 80 per cent of the 1st job seekers, entrepreneurs and even the floating population and that's a huge opportunity. Sowparnika wants to capitalise this opportunity in building luxury homes which suits their aspirational lifestyle at an enviable pricing which they will not feel the pain to pay without compromising their lifestyle.




L&T posts Rs 31.70 billion profit in Q4, beats estimates


Engineering conglomerate Larsen & Toubro (L&T) reported a 5 per cent year-on-year increase in its consolidated profit after tax (PAT) at Rs 31.70 billion for the quarter ended March 2018 on improved operational performance, surpassing the Bloomberg consensus estimate of Rs 29.95 billion. The company, which beat its revised guidance for order inflow in the last financial year, remains optimistic of a promising year ahead for new orders. The firm’s revenues from operations were Rs 406.80 billion, 11 per cent higher than Rs 366.20 billion reported in the corresponding quarter a year earlier. These were a tad short of expectations of Rs 411 billion. Earnings before interest,  taxation, depreciation and amortisation (Ebitda —an indication of operating profitability) came in at Rs 53.90 billion, or 23 per cent higher than Rs 43.80 billion reported in the same quarter a year back.




Arihant Superstructures gets  finance from HDFC


Realty developer Arihant Superstructures through its subsidiary Arihant Abode, has recently received a sanction of construction finance worth Rs 250 crore from Housing Development Finance Corporation. The funds are being raised for the company’s flagship housing project Arihant Aspire in Panvel near Mumbai, the company said in a regulatory filing. The project spread over 16.5 acre has total 3.1 million sq ft of saleable area under development. The project is being developed in three phases and the first phase is expected to be delivered over the next five years. Total tenure of the facility is also five years. The company has received all the requisite approvals for the project and has already started the construction of the same. It has already sold around 300 apartments in this project.


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