Saturday, January 16, 2021

Ticker Tape - Construction

Gera Developments launches Staycation Homes

Gera Developments, creators of premium residential and commercial projects in Pune, Goa, and Bengaluru, has launched Staycation Homes at Gera’s World of Joy, Upper Kharadi, to suit lifestyles in the ‘new normal’. Staycation Homes housed at Gera’s World of Joy are right-sized studio apartments (carpet area 267 sq ft) designed to suit the ‘new normal’ lifestyle and enjoy the world-class amenities offered by Gera’s World of Joy, the Second ChildCentric® Homes Project in Pune. This premium residential project by Gera Developments has received overwhelming response since its launch in November 2019 with Phase 1 almost completely sold out. Gera Developments is offering these unique homes starting at an all-inclusive price of `32.9 lakhs at an attractive scheme under which the customer needs to pay only `2.9 lakh and government taxes at the time of booking and complete the payment on possession.



Mantra Properties records highest sale of over 675 units in Aug-Oct


Pune-based developer Mantra Properties, has achieved a peak performance during the pandemic by recording the highest sale of over 675 units crossing turnover of over `325 crore for the period August-October 2020. Mantra Properties brought in a disruptive campaign — Mantra Ghar Banaye Dhani 8 per cent Ki Aamdani — to prospective home buyers, wherein for the first time in the history of real estate a home earns an ROI of 8 per cent and that too for two years.

The scheme works like a recurring deposit for two years, wherein, on whatever payments the customer makes toward their home, they will receive 8 per cent ROI calculated on the period and the same will be paid out at the end of the first year. Similarly, on the payments made in the first year and the second year, 8 per cent will be calculated for the tenure and will be paid out at the end of the period.



Blackstone, Prestige Group finalise terms for `11,000-crore realty deal


US private equity major Blackstone Group and realty developer Prestige Group have finalised the terms of a $1.5 billion (`11,000 crore) transaction in one of the largest real estate portfolio deals in India. The deal, expected to be concluded by the end of 2020, will see Blackstone acquiring over 21 million sq. ft. of completed and under-construction office projects and retail malls, said two people with direct knowledge of the development. Blackstone will pick up five completed office complexes with 7 million sq. ft. of leasable area and four office projects with 10 million sq. ft. under development. It will also acquire nine completed retail malls with 4 million sq. ft. of leasable area. Prestige’s two hotel properties are being evaluated for inclusion in this portfolio.


The transaction will be consummated through a combination of primary investments, secondary investments, business transfers, asset transfers, joint ventures, demergers, slump sales, or a combination thereof as mutually agreed between the parties. In October, Prestige had signed a non-binding letter of intent with certain entities, acting on behalf of funds controlled, managed by the Blackstone Group for the sale of these assets including offices, retail, hotels and mall management business. Blackstone will acquire 100% control of the portfolio that has been carved out of Prestige’s ready and under-construction projects. In the office segment, Prestige has 36 million sq. ft. of completed projects, 15 million sq. ft. of ongoing projects and 22 million sq. ft. under planning. In retail, the company has 10 operational projects of 7.5 million sq. ft. space. In hospitality, the company has ready inventory of 1,262 rooms, yielding revenue of `327.5 crore annually.



NBCC India Ltd awards project in Jharkhand


NBCC India Ltd has awarded the work, for the Construction of Smart Township/Colony with Colony Road Network and Other Road, Service Building and other allied jobs related to mines for Magadh & Amrapali area of CCL at Tandwa in Chatra district, Jharkhand to M/s Ram Kripal Singh Construction Pvt. Ltd.(L-1) at their quoted price of `611,83,95,876/-.



NBCC updates on Amrapali projects


The Hon’ble Supreme Court appointed Ld. Court Receiver has granted the approval to tender all the projects of Amrapali.


Accordingly, NBCC (India) Limited has awarded the work of 22 projects of Amrapali (residential) of total estimated cost of `7309.71 crore out of which two projects of `7.50 crore has been completed and handed over.Further, till now 695 flats have been completed and handed over by NBCC.




Safexpress launches its 56th ultra-modern Logistics Park in Kolkata


Supply chain and logistics company, Safexpress launched its 56th ultra-modern logistics park near the city.


Spread over 2.75 lakh square feet, the state-of-the-art facility is located on Durgapur Expressway. The Park, enabled with state-of-the-art trans-shipment and 3PL facilities, is expected to boost the industrial growth of the region.


It will also help in minimising the infrastructure gaps and serve the supply chain, logistics requirements and warehousing needs of companies located in and around West Bengal (WB), the company said in a statement.


Being one of the largest industrial hubs of WB, Kolkata is a crucial location from the point of view of supply chain and logistics. The logistics park will enable loading and unloading of over 100 vehicles simultaneously to ensure smooth and uninterrupted movement of goods, the release added.


Having a total warehousing area of over 17 million square feet, Safexpress provides supply chain and logistics services to more than 5000 corporate clients. With its fleet of more than 7500 GPS-enabled vehicles and delivers to all 31,083 pin codes of India.




Jindal Stainless bets big on decorative pipes, tubes in eastern India


The Jindal Stainless group is betting big on decorative pipes and tubes in the east, even as the segment was expanding at a rate of 12-13 per cent amid Covid induced disruptions Out of the `7,000 crore national market of decorative pipes and tubes, the eastern region accounts for `1,000 crore a year. The company has embarked upon Phase 2 of its nationwide pipe & tube co-branding programme ‘Jindal Saathi’ as a strategy to increase its footprints.The reduction in counterfeit supplies in the market which was reduced from last year’s level of 15-16 per cent to 5-7 per cent this year, and co-branding of P&T have helped the company boost its market share to 50 per cent from 44 per cent, Sharma said.


The $2.79 billion Jindal Stainless was aiming at raising its market share to 60 per cent at the national level.


The company was targeting 15 per cent growth in sales in the eastern market. With Jindal Saathi 2.0 initiative, it has expanded co-branding of its products to 100 cities in the east from 26 in the previous campaign.




Ashwin Sheth acquires 5-acre Cinevista land parcel in Mumbai’s Kanjur Marg for `260 cr


Real estate developer Ashwin Sheth Group has signed a deal to acquire a 5-acre plot that houses a movie studio owned by production house Cinevista at Mumbai’s Kanjur Marg suburb for more than `260 crore. The two parties are in the process of registering the transaction. The studio has mostly been known for shooting television serials. A few movies have also been made there. A part of the studio had caught fire in 2018.



Realty developers urge govt to set up regulatory body for cement sector


In the backdrop of frequent allegations of cartelisation and undue profiteering in the cement manufacturing industry, realty developers have urged Prime Minister Narendra Modi to set up a regulatory authority for the sector.


Builders Association of India (BAI), the apex body of the construction industry with over 20,000 business entities, has stated in its letter that such regulatory authority will prevent manufactures from indulging in unethical trade practices.


In May, developers had sought government’s intervention alleging cartelization among cement and steel manufacturers following a sudden increase in prices. The developers’ body has substantiated its demand with the rulings and observations of various statutory bodies, committees and submissions in supreme institutions like Parliament and its statutory committees.


Cement Industry was de-controlled in 1989 and de-licensed in 1991 under the policy of economic liberalization. Decisions of installation of new plants are taken by the industry based on market demand.



Sarovar Hotels and Resorts to add over 15 properties by end of 2021


Hospitality firm Sarovar Hotels and Resorts is looking to add over 15 properties, mainly in tier-II and -III cities in India, by 2021-end as part of its expansion plans.The company currently manages 93 hotels with more than 6,900 rooms in 55 destinations in India and Africa. Strategic expansion plan for 2021 is to add more than 15 hotels focussing on tier-II and tier-III cities including Panipat, Morbi, Dalhousie, Katra, Dibrugarh, Latur, Mussoorie, Dhamtari, Udaipur and Jalandhar, The upcoming hotels will be primarily under the Sarovar Premiere, Sarovar Portico and Golden Tulip brands.


At present, the company’s three overseas properties are in Africa — one in Zambia and two in Kenya.



Top eight markets Q3 residential launches record 68% rise


Residential launches across India’s top eight property markets have witnessed a major upturn with 68 per cent jump during the quarter ended September over the previous quarter that was marked by the lockdowns owing to the outbreak of Covid19 pandemic. The growth in housing launches was led by Hyderabad, Kolkata, Mumbai and Pune. Launches rose 658 per cent on-quarter in Hyderabad, 326 per cent in Kolkata, 238 per cent in Mumbai Metropolitan Region (MMR) and 164 per cent in Pune, showed data from Liases Foras Real Estate Rating & Research. While sales, launches and inventory levels have improved sequentially from the lockdown quarter, the performance remains far from recovering to the year ago levels. Launches continue to be down 70 per cent when compared with a year ago period. These eight tier I markets have recorded sales of 42,297 units in September quarter, up 60 per cent from June quarter. Sales witnessed a maximum Increase of 68 per cent in Kolkata followed by 64 per cent in Ahmedabad and 60 per cent each in MMR and Bengaluru.


Overall sales across tier I cities, however, declined 37 per cent from a year ago. Sales in the National Capital Region (NCR) and Bengaluru witnessed maximum decline of 47 per cent and 46 per cent, respectively on from a year ago followed by 37 per cent in Ahmedabad and 32 per cent in Kolkata. Least decline of sales was seen in Chennai by 22 per cent and Pune by 35 per cent. Prices in the consolidated tier I cities, according to Liases Foras, remained the same on both sequential and on-year basis. Unsold units decreased by 3 per cent on a sequential basis and the current unsold across top 8 cities stands at 932,767 units. Months’ inventory reached 66 months during the quarter from 109 months in the previous quarter which is a 39 per cent drop as sales increased faster than new launches. Although when compared to the year ago period it still remained 54 per cent higher.




Law & order woes, approval delays: 441 infra projects see cost overruns


Delays in land acquisition and green clearance, along with law and order problems, have made as many as 441 infrastructure projects, each worth at least `150 crore, run into cost overruns totalling more than `4.35 lakh crore.

As per a report by the Ministry of Statistics and Programme Implementation, which monitors infrastructure projects costing `150 crore and above, there are 1,661 such central sector infrastructure projects of which nine are ahead of schedule and 206 are on schedule as on September 1, 2020.


The total original cost of implementation of the 1,661 projects was about `20.9 lakh crore but their anticipated completion cost is now expected to be about `25.26 lakh crore, which reflects cost overruns of over `4.35 lakh crore (20.81% of the original cost).


The expenditure incurred on these projects till August was `11.48 crore, or 45.47% of the total anticipated cost.


Law and order problems, delay in land acquisition and obtaining forest/environment clearances, lack of infrastructure support and linkages along with geological surprises, delay in tie-ups of project financing, finalisation of detailed engineering, change in scope, tendering, ordering and equipment supply, teething troubles before commissioning and contractual issues are the primary reasons for time overruns as reported by various project implementing agencies, according to the report. It has also been observed that project agencies are not reporting revised cost estimates and commissioning schedules for many projects, which suggests that time/cost overrun figures are underreported according to sources at ministry.


While 539 projects are delayed, 211 projects reported both time and cost overrun. Of the 539 projects, the highest number of delayed projects pertains to railways followed by road transport and highways, and petroleum. However, the number of delayed projects decreases to 440 if the delay is calculated on the basis of the latest schedule of completion. Of the total, 98 projects have reported additional delays from their date of completion reported in the previous month. Of these, 26 are mega projects costing at least `1,000 crore. For 907 projects, neither the year of commissioning nor the tentative gestation period has been reported.



Birla Estates to invest `1,350 crore in 3 housing projects; aims to be among top builders


B K Birla group realty firm Birla Estates will invest `1,350 crore to develop three ongoing housing complexes and plans to add 3-4 projects every year as it seeks to be among top builders over the next five years. The company has recently launched a 47-acre housing project in Gurugram, Haryana, comprising 764 independent floors and the response has been good so far despite pandemic.


The price per unit is in the range of `1.3-3 crore. This project is in equal joint venture with Delhi-based Anant Raj Ltd. The construction cost is estimated at around `550 crore.


Mumbai-based Birla Estates, a wholly-owned subsidiary of Century Textiles and Industries Ltd, is developing a 22-acre housing project in Mumbai with a total of 850 apartments in this project at a cost of `650 crore. The company have launched 534 flats so far, of which 485 units are already sold out. Going forward, Birla Estates plans to develop projects in land bank owned by the group and is also looking at joint ventures with landlords.


The company’s main focus will be on four major markets of Mumbai, Bengaluru, Pune and Delhi-NCR.




Shiva Cement Ltd approves expansion project of `1530 crores


The board of directors of Shiva Cement Ltd at its meeting held today, has approved the plan for expansion of setting up of 4000 TPD clinker unit along with a 1 MTPA grinding unit. The company will fund the project cost of `1530 crores with a mix of long-term debt and equity. The ground breaking ceremony is scheduled to be held on October 22, 2020.



Sunteck Realty acquires approx. 50 acres in emerging micromarket, Vasind


Sunteck Realty Ltd, India’s leading luxury developer has entered into an agreement to acquire approx 50-acre land parcel in Vasind. The project will offer approximately 2.6 million square feet. Envisaged as a one of the large residential development under ‘Sunteck World’ brand in Thane District, the project will have a revenue potential of `1,250 crores (`12.5 Billion) spanning over next 4-5 years.



Major boost to Atmanirbhar Bharat, easier entry for local companies in road projects


India is set to make it easier for local companies, especially new entrants, to bid for road projects as the government gives a big push towards Atmanirbhar Bharat Abhiyan.


Major changes in the eligibility criteria for projects built on the engineering, procurement and construction (EPC) mode, including easing of financial and technical criteria, are under way, according to senior government officials aware of the matter.

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