Tag: property in kolkata

Eden City comes up with new residential scheme in Kolkata

Eden City Maheshtala, the flagship project of Eden City group, a Kolkata headqua rtered real estate developer, has become the first residential project in the city to get a six star rating by Crisil Real Estate Star Ratings (Crest). These ratings address two critical needs in the realty sector improved transparency and objective benchmarking of projects. Both of which have been fulfilled by Eden City Maheshtala, claims the company.

Spread over 22 acres at Maheshtala near Batanagar, a half-hour drive from the central business district of the city, the project will house as many as 40 ground-plus-seven and ground-plus-15 towers with more than 2,200 flats of two and three bedrooms each. The apartment sizes will vary between 796 sq ft and 1,524 sq ft with prices ranging between Rs 13.14 lakh and Rs 39.78 lakh.

Developers said amenities include a fully equipped club with swimming pool, gymnasium, library, games room, yoga and meditation room, coffee shop and restaurant, banquet halls, medicine shop, convenience store and ATM. Besides, there are four community halls, an indoor stadium, a football field, multipurpose courts, children’s play ground jogging tracks and two natural water bodies. A school, hospital, shopping complex, multiplex and a football stadium are also due to come up shortly in the vicinity.

More than 1,200 families have already been offered possession till date and many of them have already started living there. Bookings are open at present for ready-to-move-in flats as well as flats to be delivered by December 2013, 2014 and 2015, said the company’s chairman, Indrajit De.

Incidentally, Eden City, Maheshtala is the largest housing project in south Kolkata and the first one to be funded through foreign direct investment by UK-based F&C REIT Asset Management.

Source: mydigitalfc.com

Kolkata Poised for High Cross-Sector Growth in Office, Retail, Hospitality and Residential

Kolkata’s real estate market is set for a high growth phase fuelled by the IT/ITES sector. This is according to the report, “Emerging City Winners Profiles: Kolkata”, released today by Jones Lang LaSalle, one of the world’s leading real estate services firm. An increasing corporate presence in the city is also triggering growth for Retail, Hospitality and Residential properties.

“Kolkata boasts of a highly literate and well equipped workforce, lower land acquisition costs (when compared to Mumbai and Delhi) and attractive government initiatives which make it a compelling destination for corporates and developers, alike”, said Mr Vincent Lottefier, Country Head, Jones Lang LaSalle India. He further added, “We at Jones Lang LaSalle are excited to be a part of Kolkata’s growth and pleased to offer our entire range services including transaction management services, retail advisory, strategic consulting, capital markets, property management, integrated facility management and project and development services”.

The report states that increasing corporate presence is stimulating growth in per capita income and encouraging consumption in Kolkata. Overall, the city provides a positive environment for new corporate entrants, as well as existing corporates eying expansion.

Abhishek Kiran Gupta, Senior Manager, Research, Jones Lang LaSalle, India adds “Kolkata is now on the ‘global radar’ of multi national companies, a large skilled labour pool, a pragmatic, business friendly and stable business environment, active promotion and incentives, combined with low operating costs and the city’s strong cultural heritage are attracting the attention of both the domestic and international business community. The city has become a favoured destination for IT/ITES activities, with a rapidly growing corporate presence.

Kolkata now has most of the ingredients in place to move its economy up the value-chain its size, skill base and heritage point to a significantly higher international profile over the long term”.

He further added “Kolkata’s real estate market is set for transformation, and property will play a pivotal role in the city’s continued renaissance. All real estate sectors have significant potential. The growing IT/ITES sector will underpin strong expansion of the office sector; Kolkata is a high priority destination for retailers attracted by its large population and rising disposable incomes; the residential market is expanding on the back of a growing IT/ITES workforce and hotel demand is being boosted by corporate business and tourism. The Kolkata real estate market is now on the radar of leading national and international developers, all keen to participate in Kolkata’s increasingly dynamic real estate market”.

According to the report, Kolkata, whose economy grew by 8% in 2005, is home to 175 IT and ITES firms which employ approximately 40,000 people. Rapid expansion and increased business activity is expected to strongly boost demand for speculative built space as well as built to suit offices and 4.5 million sq ft of additional supply is likely to be completed by 2007 in Salt Lake and New Town Rajarhat. The city is also a high priority destination for domestic and international retailers with over 2 to 3 million sq ft of organized retail under construction by 2008.

Stimulated by the growth of the IT/ITES sector, hotel room demand in Kolkata is expected to grow at an annual 11.7% over the next five years and supply at 15.4% per year. Similarly, Kolkata’s residential demand continues to be strong, as shown by absorption patterns of recent residential demand, which are expected to grow in tandem with economic activity and investor interest.

“Emerging City Winners” is Phase IV of the Jones Lang LaSalle’s World Winning Cities Research, a multi-year programme which draws together the essence of contemporary city competitiveness. World Winning Cities Research examines trends that impact the business and economic landscape, and how these factors are coalescing to create the rising urban stars of the next decade. The research aims to identify the winners and losers among the emerging BRIC cities in India, China, Russia and Brazil.

About Jones Lang LaSalle

Jones Lang LaSalle (NYSE: JLL), the only real estate money management and services firm named to FORTUNE magazine’s “100 Best Companies to Work For” and Forbes magazine’s “400 Best Big Companies,” has approximately 150 offices worldwide and operates in more than 450 cities in over 50 countries. With 2006 revenue of over USD$2.0 billion, the company provides comprehensive integrated real estate and investment management expertise on a local, regional and global level to owner, occupier and investor clients. Jones Lang LaSalle is an industry leader in property and corporate facility management services, with a portfolio of over 1.0 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse real estate money management firms, with approximately USD$40.6 billion of assets under management.

Jones Lang LaSalle has over 45 years of experience in Asia Pacific. With over 11,500 employees operating in over 30 markets across the Asia Pacific region, the company is positioned to partner with clients to provide the quality advice needed for making quality decisions.

The Little Book of Real Estate Definitions, Asia Pacific by Jones Lang LaSalle is a useful resource to gain a better understanding of the most commonly used real estate terms in the region.

Source: Business Wire India

Godrej Properties buys back Red Fort

Realty firm Godrej Properties on Wednesday said the company has bought back private equity firm Red Fort Capital’s 49 per cent stake in a subsidiary that is developing an IT Park in Kolkata, for an undisclosed amount.

In 2008, Red Fort had picked up 49 per cent stake in the IT Park project ‘Godrej Genesis.’

“In terms of the agreement with Red Fort India Real Estate Babur (Red Fort) for Project Godrej Genesis at Kolkata, the company has given exit to Red Fort by purchasing its 49 per cent stake in the equity share capital of its subsidiary Godrej Developers Pvt Ltd (GDPL),” Godrej Properties said in a filing to the BSE.

GDPL has become wholly-owned subsidiary of the company with effect from December 4, 2013, it said, but did not disclose the amount it paid to Red Fort for the stake.

In July, Godrej had bought back HDFC Asset Management Company Ltd’s nearly 50 per cent stake each in the realty firm’s two projects at Chennai and Chandigarh.

HDFC PMS (Portfolio Management Services) had invested about Rs. 100 crore to pick up stakes in Godrej Properties two subsidiaries, which are developing realty projects in Chennai and Chandigarh.

Godrej Properties has presence in 12 cities across India with about 90 million sq ft of potential developable area.

The company reported 48 per cent rise in net profit during first half of this fiscal at Rs. 73.7 crore, while total income grew by 21 per cent to Rs. 564.6 crore during the period under review.

PE firm Red Fort Capital focuses on Indian real estate and has invested in several projects. Besides Godrej, it has made investment in projects of Parsvnath Developers, The 3C Company and Lotus Green among others.

Source: The Hindu

Kolkata developers eye other cities on slowdown blues

Limited growth opportunities in Kolkata are forcing city-based developers to explore other markets. Chennai is high on the preference list, followed by non-metros such as Ahmedabad, Raipur and Bhubaneshwar.

Delay in receiving clearances, long turnaround time (for projects) and other inherent risks are some reasons for venturing outside the State.

At least five major developers have firmed up plans for entry in Chennai, while Raipur, Bhubaneshwar and Ahmedabad are the other alternatives.

Harsh Patodia’s Unimark Group, Nandu Belani-controlled Belani Housing Development, Sushil Mohta’s Merlin Group, Pradeep Chopra’s PS Group and the Space Group are planning to enter Chennai.

Merlin is also firming up plans for entry in Raipur and Ahmedabad.

“The signs of a slowdown in Kolkata are imminent. Over the last one year there has not been any upward price movement despite increase in demand. Commercial space off-take has gone down too,” Nandu Belani of Belani Housing Development Ltd told Business Line.

Belani has over the last one year set up an office in Chennai followed by zeroing in on a plot. He plans to develop a residential project. Merlin too is eyeing a residential project in Chennai.

According to Harsh Patodia, President (CREDAI Bengal), apart from expanding operations, the need to de risk investments i.e. having more offerings outside a single city is also a reason. The best bet would be to enter new markets that have similar dynamics as Kolkata.

Chennai, which has moderate presence of private equity players and investors, relatively stable price movement and upcoming infrastructure, along with demand for apartments, offers the best alternative.

Other places such as Ahmedabad have a faster turnaround time and Raipur and Bhubaneswar have fewer local developers. As such these States have come up as logical alternatives.

LOCAL TIE-UPS

“In the southern States, people identify with local developers. Many of us are entering into tie-ups with a local player in the region,” Patodia said.

Patodia’s Unimark Group is in final discussions with a prospective local partner for its Chennai entry. Kolkata’s Space Group too has entered into tie up with Chennai’s Olympia Group for joint development.

SLOWDOWN

Market sources, meanwhile, indicate that over the last one year, growth in Kolkata has been stunted. A prime indicator is the price (of apartments).

Till April, the average per sq ft price in the city stood between Rs 3,000 and Rs 5,000, a stable price that has neither moved up or down.

“Developers have been taking a hit on their margins. They are unsure of unsold stock if they opt for new projects. Price is unlikely to move up with the uncertainty in the market,” a developer said.

Delay in obtaining clearances and non-withdrawal of the Urban Land Ceiling Act leading to non-availability of land; followed by increase in registration fees and property valuation; have adversely impacted developers. Large projects are on the back-burner.

Source: Business Line