Sahara Buys UK’s Iconic Grosvenor House Hotel for £470 million

In the first crossborder deal for the Indian hospitality sector this year and also the first one for Subrata Roy’s Sahara India, the Lucknow-based financial services-to-real estate conglomerate has acquired UK’s iconic Grosvenor House hotel for a knock-down price of £470 million (Rs 3,275 crore) from the Royal Bank of Scotland (RBS). The UK has been a favourite shopping destination for Indian companies, with several well-known assets like Tetley and Typhoo in the tea category, Cuticura, Erasmic and Nulon in cosmetics and premier auto brands Jaguar & Land Rover having been snapped up.
The 494-room luxury property on London’s Park Lane, which was once home to the Duke of Westminster, is Sahara India’s second acquisition in the hospitality sector after its 2006 buyout of Sahara Star hotel, earlier known as Airport Centaur, in Mumbai. “This acquisition is part of the major expansion plans of the group. In addition to the acquisition of Grosvenor House, London will be the gateway for Sahara to introduce some of its new business ventures internationally,” said Subrata Roy Sahara, managing worker & chairman, Sahara Group.
RBS took over Grosvenor House in 2001 after Le Meridien collapsed into administrative receivership. The bank had been looking for a buyer for Grosvenor House for the last three years. At that time, the hotel was “valued for more than £1 billion.” However, unfavourable economic conditions hit valuations hard. Roy said, “The valuation, even today, is quite high but due to a highly satisfactory due diligence by RBS and after long and strict negotiations, we have purchased it for £470 million.”
Richard Lewczynski of Blandford Goldsmith put the deal together for Sahara India, which has acquired the property through Amby Valley Ltd. Grosvenor House, which has the largest banquet hall in London, is managed by the US-based Marriott International and is positioned as a JW Marriott hotel since September 2008. However, following the change in ownership, Sahara and Marriott will jointly manage the property. The conglomerate plans to refurbish Grosvenor House by offering several facilities such as an Indian restaurant under the name Namak, a night club, swimming pool and spa.
When Subrata Roy took over Sahara Star, he gave the property a complete makeover. The five-star hotel boasts of being the world’s largest pillar-less clear-tosky dome structure complemented by India’s biggest marine aquarium. Kaushik Vardharajan, MD of HVS, a global hospitality consultancy firm, said, “The US and European hospitality sector continues to be under pressure with low room occupancy levels and dropping tariffs. As a result, valuation of hotels has declined significantly. This helps companies like Sahara to acquire properties at a discount.” Vardharajan added that in terms of capital investment, it works out better to acquire hotels abroad at a discount compared to building one in India. The cash flows kicks in immediately in a running hotel compared to a greenfield one.

Real Estate Companies Reconsider Capital Raising Plans

With real estate and financial services stocks battered on Dalal Street, several companies have been forced to review their capital-raising plans. At least one public sector bank, which was working on sale of shares to institutional investors, has put its plans on hold till sentiment improves.
But the worst hit would be real estate players, several of whom had lined up initial public offers (IPOs). The list included Emaar MGF, which had deferred its issue earlier, Embassy Projects and Lavasa Corp that has also received a showcause notice from the environment ministry. Raheja Universal, BPTP, Ambience, Lodha Developers and Kumar Universal were also planning share sales.
“The current controversy has adversely affected investor sentiment for certain sectors and until things settle down, investors are likely to be cautious,” said Pratik Gupta, head of equities at Deutsche Bank. JP Morgan India investment banking head Rohit Chatterjee said in the short term, investors are likely to stay away from finance and realty stocks. Drugmaker Claris Lifesciences, which was in the market to raise Rs 300 crore, had to lower the price band to Rs 228-235 from the earlier Rs 278-293 in view of the choppy markets. Poor response also forced the company to extend the issue closing date, originally scheduled to end on Friday, to December 2.
Investor worry was in evidence on Friday with the BSE Sensex closing 184 points down at 19,136, led by a 4.68% decline in real estate stocks. This is the lowest closing level in 11 weeks. During the day, the Sensex dropped below the 19,000-mark as investors were worried about the future of the sector and tightening of lending to realty companies.
The fall was led by Unitech, which is also under the lens in the 2G telecom scam, declining by 4.8%, while DLF, the country’s largest real estate developer, recouped most of the losses and closed 1.7% down. Shares of Hindustan Construction, the promoter of Lavasa, crashed 19%.
In the afternoon, financial services secretary R Gopalan tried to play down the fears saying there was no directive to cut down lending. During the week, the Sensex declined by 2.3% with the loan probe by CBI affecting sentiment since Wednesday. Among the financial services companies under the CBI scanner, LIC Housing Finance closed 12% lower at Rs 931.15, while Central Bank dropped 10% to close at Rs 188.40. Investment bankers said the overall India story remained intact but appetite for real estate and banking stocks had taken a hit. This was apparent in the widening of spreads on credit default swaps for Indian stocks seeing the biggest jump since June. An increase in the spreads indicates that global investors are worried about the prospects of Indian stocks.
“Overseas institutional investors are very worried. There main fear is about the possibility of more murkiness in the real estate sector,” a senior executive at a leading foreign bank said. Bankers said the inability of developers to tap the stock market could affect them severely as banks are expected to tighten flow of loans to the sector. Even before the scandal broke out, RBI had tightened norms for lending to the sector fearing that a bubble was building up. “There may be some cash flow problems for some of the companies in the short term given that IPOs are tough and banks are tightening lending norms,” said a banker.

PBEL to Develop Housing-cum-Commercial Township Project in Chennai

PBEL Property Development (India) Ltd on Wednesday outlined plans to develop an integrated housing-cum-commercial township project in Chennai along Old Mahabalipuram Road. PBEL is a venture between Property and Building Corporation Ltd (PBC), a subsidiary of Israeli conglomerate IBD group, Electra Real Estate Ltd, a subsidiary of Elco Holdings Israel, and Hyderabad-based Incor, with the first two firms holding 45 per cent equity apiece and Incor (10 per cent).

The executive director of PBEL Property, Anand Reddy, said that the project will come up on 42-acre that the company has acquired. Of this, about 30 acres would be earmarked for residential and the rest of the 12 acres will be for commercial use, which would include large office and retail area too.

Sobha Developer to come up with 12 Million Square Feet of Residential Projects

Sobha Developers will launch about 12 million square feet of residential projects this fiscal year and has implemented selective price increases, according to a top company official.
“Prices have been stable. This quarter on, there have been selective price increases on some products,” managing director J C Sharma told the Reuters India Infrastructure Summit on Wednesday.
Of the 12 million square feet projects the company plans to launch, Sobha hopes to sell about 3 million in the year to March 2011, Sharma said.

The company, which has a significant presence in southern India, reported a surge in standalone net profit for the April-June quarter.

TCIL Plans Exit from Real Estate Business

Transport Corporation of India (TCIL) will demerge its real estate and warehousing divisions in next three months and expects to create greater value for shareholders through the hive-off. After the demerger, the company would focus on the core activity of providing logistic services, according to a report published in Financial Express.

“Our board approved the demerger in April this year while shareholders have just given their nod to the proposal. The matter is with the Andhra Pradesh High Court at present. We are expecting a green signal in next 2-3 months,” (TCIL) executive director Vineet Agarwal, said. “The logic in the demerger is that we want to create value for shareholders by focusing on our core activity. The development of real estate and warehouses will be done by the new company,” he added.

TCIL Plans Exit from Real Estate Business

Transport Corporation of India (TCIL) will demerge its real estate and warehousing divisions in next three months and expects to create greater value for shareholders through the hive-off. After the demerger, the company would focus on the core activity of providing logistic services, according to a report published in Financial Express.

“Our board approved the demerger in April this year while shareholders have just given their nod to the proposal. The matter is with the Andhra Pradesh High Court at present. We are expecting a green signal in next 2-3 months,” (TCIL) executive director Vineet Agarwal, said. “The logic in the demerger is that we want to create value for shareholders by focusing on our core activity. The development of real estate and warehouses will be done by the new company,” he added.

Sarovar Hotels to invest Rs 70 crore for 2 more hotels in Gujarat

As part of its plans to double up the number of rooms across the country, Mumbai-based Sarovar Hotels Ltd. is setting up two more hotel properties in Gujarat by December 2010. At an investment of Rs 70 crore, the company is coming up with a 5-star business hotel, Park Plaza, in Ahmedabad and 3-star property, Sarovar Portico, in Rajkot.

“Hospitality industry in Gujarat is mostly driven by business, followed by tourism. Therefore, we are consciously setting up properties to cater this segment. For instance, Park Plaza, which is being developed by a Delhi-based realtor, will be a dedicated 5-star budget hotel in Ahmedabad with almost 100 rooms. Meanwhile, we are also scouting for land in cities like Vadodara and Surat for our other hotel brands,” said Anil Madhok, managing director of Sarovar Hotels.

While the company will be doubling the number of hotels in Gujarat to 200 by year end, Sarovar Hotels will continue to expand its operations for the next couple of years. “Even in others parts of country, we are rapidly opening up new properties. In the next few months, hotels in Jaipur, Chennai and Chandigarh will be opened soon,” Madhok said.

From 45 hotels under brands like Park Plaza and Park Inn, under its tie up with Carlson Hotels, and Sarovar Portico, Sarovar Premium and Hometel, Sarovar Hotels is aiming to expand to 75 in the next couple of years.

“By the end of the next calendar year, we hope to expand from current 3,300 rooms to over 6,000 rooms across the country,” Madhok added.

While the new hotel properties are being developed and managed by Sarovar Hotels itself, the company also managed properties for other developers where it has earned revenue in terms of fees of Rs 700 crore for the financial year 2009-10.

Source : http://www.business-standard.com/india/news/sarovar-hotels-to-invest-rs-70-crore-for-2-more-hotels-in-gujarat/400322/

DLF converts Mumbai mall project into residential one

To cash in on the demand for residential and office space in Tier-I and Tier-II cities, real estate companies are planning ambitious projects in cities this financial year. Realty major, DLF feels with rapid economic growth in the smaller cities, there will be more demand there. Its DLF Garden City project in Indore has been a major success, with the first phase being sold. It is planning to come up with the second phase during the current financial year. Ansal Properties is also in the process of developing residential projects in Jaipur, Jodhpur, Agra, Ajmer, Kundli and Panipat, among others. In the current fiscal, the company plans to launch a million sq ft area in a commercial project in Lucknow, which will have office buildings and a shopping mall. On the other hand, Omaxe has 40 residential and integrated township projects in Tier-II and Tier-III cities. The projects are primarily in Haryana, Uttar Pradesh, Rajasthan, Madhya Pradesh and Punjab. Industry analysts assert that the demand for residential space has shown growth and will keep growing if the prices are right. “The Tier-II and Tier-III cities are witnessing growth in the residential segment. One can also witness demand in Tier-II cities for office space, primarily from the call centres and Business Process Outsourcing companies,” said Mr Anuj Puri, chairman and country head with the realty consultancy of Jones Lang LaSalle Meghraj.

Source : Business Standard

DLF Home Developers offers new housing project DLF New Town Heights in Gurgaon.

DLF Homes has launched a new housing project named “DLF New Town Heights” in Gurgaon. DLF New Town Heights Gurgaon offers 2, 3 & 4 BHK quality apartments in one of the most famous development corridors in the NCR with all the modern facilities like Living/Dining/Passage & Lobby: Vitrified Tiles within Apartment Kitchen & Toilets, Anti Skid Ceramic Tiles Bedrooms: Laminated Wooden Flooring Balcony, basement parking, swimming Pool, Tennis Court and many more.

DLF New Town Heights Gurgaon located 4 kms from NH-8 IMT Manesar entrance, 12 kms from Gurgaon city bus stand & 15 kms from Rajiv Chowk.

DLF Developer is well known name in real estate. DLF Group has completed many housing projects successfully in all over India. DLF group is team of extremely skilled professionals and equipped with latest technology, has expanded into the creation of world-class residential project, commercial offices, retail complexes, office cum retail projects and hotels.

Affinity Solutions Pvt. Ltd an associate of all the leading brands of Indian Real Estate market with more than 10 yrs of experience in real estate services handling the entire project in India. We understand the value of your time and money so provide the best services in Real Estate market with our unique portfolio management services.

Source:http://www.sbwire.com/news/view/45539

Rakeen eyeing major investments in India

UAE-based realty major Rakeen has announced plans to launch integrated mega township projects in India, it was revealed to Property Pulse.

In an exclusive interview with Property Pulse on the sidelines of just concluded Realty Plus Conclave 2010 held in the Capital, Dr. Khater Massaad, Executive Chairman, Rakeen and CEO, RAK Investment Authority (RAKIA) said that India has become the most attractive destination as there is a huge demand for real estate projects. “Moreover, the country enjoys an excellent relationship with the Emirate,” he added.

Rakindo Developers Pvt Ltd, a joint venture between Rakeen and Chennai-based Trimex Group, is currently engaged in completing its first integrated township project in Coimbatore in Tamil Nadu. “The date for booking for this project will be announced in June,” informed Dr. Massaad.

According to Prasad R Koneru, MD, Rakindo Developers Pvt Ltd, Rakindo is developing Kumarakom Wetlands in Kumarakom, Kerala and Chennai Marina in Tamil Nadu. “The 1000-acre Kovai Hills township project in Coimbatore will also feature a luxury resort and a spa. Besides offering luxury living options under this project, the company is also creating affordable housing just alongside the main project,” added Koneru.

Rakeen is also involved in projects like infrastructure and ports development in India. Meanwhile, the much talked about Al Marjan project, a cluster of five coral-shaped man-made islands spread over 2.7 million sq mt off the coast of Ral Al Khaimah — is being developed in the emirate. The project comprises waterfront homes, floating villas, hotels, resorts, sporting facilities and commercial areas.

The company’s other projects include Bab Al Bahr, RAK Financial City, Gateway City, RAK Convention Centre, Banyan Tree Al Wadi Resort and Jabal Al Jais, among others. Rakeen also has projects in countries like the Congo, Georgia, Lebanon and Kyrgystan.

Source:http://www.realtyplusmag.com/rpnewsletter/fullstory.asp?news_id=8479&cat_id=1

DLF converts Mumbai mall project into residential one

DLF, the country’s largest realtor by market value, is planning to build a premium residential apartment complex at Worli in Mumbai instead of a high-end mall project, as demand for retail spaces has come down sharply, according to a company executive.
“We felt residential will do well here, and we will fix the price depending on market conditions,” he said. According to DLF website, the project is under “planning and development” under the high-end mall brand Emporio.
Rents of retail spaces are down by 25-30 per cent from their peak in 2007-08 as demand slowed. Though demand for office spaces have picked up slowly, property consultants expect lukewarm demand to continue for retail developments.
Worli, which was a former hub of textile mills, is witnessing modern office developments by realtors such as Indiabulls, Bombay Dyeing and Century Textiles, and residential apartments command a price of Rs 22,000 per sq ft and above.
DLF made news in 2005 when it bought a 17-acre Mumbai Textile Mill land from National Textile Corporation (NTC) for Rs 702 crore. The company at that time announced it would build a futuristic retail-cum-entertainment complex on the land.
The new project is expected to be launched in the next four-five months after taking all the necessary approvals, the executive said.
According to property consultants, the company changed the plan several times as real estate market went through a prolonged slowdown.
However, DLF is not alone which converted its mall project into a residential one. Host of others such as DB Realty in Dahisar area of Mumbai, West Pioneer in Kalyan near Mumbai and TTK group in Bangalore also changed their plans to build mall to apartment projects.
Apartment prices have risen 15-20 per cent since mid-2009 as home buyers returned to the market. Earlier, prices had declined by around 40 per cent as home buyers stayed away.
Buoyed by response for its apartment projects, DLF is expected to launch 8-10 new residential projects in the next one year, according to sources. DLF, which stalled some of its office projects during the slowdown, is planning to launch two-three commercial projects in Gurgaon and Hyderabad.
DLF today sold 1,200 units of independent floors in its Panchkula Valley housing project in Chandigarh within a week of its launch.
Source:http://www.business-standard.com/india/news/dlf-converts-mumbai-mall-project-into-residential-one/386894/

Omaxe lays foundation for ‘Omaxe Waterfront’ in Allahabad

Real estate developer Omaxe Ltd. laid the foundation of Omaxe Waterfront City, the first hi-tech township at Allahabad.

Omaxe Waterfront is spread over approx. 1535 acres. Omaxe, through an SPV has already signed a developer’s agreement with the Allahabad Development Authority for approx 725 acres with an environmental clearance already been obtained.

Strategically located on the banks of the holy Ganga, Omaxe Waterfront City brings the world famous concept to live by the waterfront for the elite of Allahabad. Omaxe Waterfront City will be developed as a holistic ultra modern eco-friendly hi-tech township comprising of various residential options, commercial, retail, industrial, institutional, recreational and entertainment zones.

Omaxe Waterfront City unveils the most comfortable and luxurious lifestyle away from the hustle-bustle of the daily life.

Source:https://mail.google.com/mail/?shva=1#inbox/126dedacd3a736af

CHD Developers launches Lifestyle Prime at CHD City in Karnal

New Delhi, February 17, 2010 – CHD Developers Ltd, one of the leading real estate developers in North India has announced the launch of Lifestyle Prime, premium independent floors to families looking for elegant design and comfortable space in a low-rise format at CHD City, Karnal, Haryana. Lifestyle Prime is the successor to the extremely successful CHD Lifestyle, stylish, comfortable and affordable independent floors which were sold out within just 6 weeks of launch, and Lifestyle Grand, modern, spacious and majestic independent floors out of which just a few are now available for bookings. The construction for both CHD Lifestyle and Lifestyle Grand has already been commenced ahead of schedule and the same is expected for CHD Lifestyle Prime, which offers luxuriant and spacious independent floors available in two different floor area options of 1042 sq.ft. and 1145 sq.ft. and are competitively priced, starting at just Rs.14,55,000. CHDLifestyle Prime is an integral part of CHD Developers’ Rs. 500 crore mega project, CHD City at Karnal, Haryana, where the total land area underdevelopment is over 225 acres.

According to Mr. Gaurav Mittal, Director, CHD Developers, “Anyone who values personal privacy and convenience will find Lifestyle Prime an elegant place to live in. The independent floors are spacious and airy, offering an unmatched living experience to the families of our customers. With incredible attention to detail, the flats inLifestyle Prime offer an exclusive and enviable lifestyle.”

CHD City is fast taking actual shape and it is evident in the latest developments, which include full possessions of Silver County Villas Phase-I and the Phase-II is under construction. The Central Park spread across 5 acres has been completely beautified and all the commercial plots are ready for possession. Till date, over 150 possessions for residential plots have been taken and a number of customers have already started their private constructions on their plots. Construction for a Temple inside the CHD City is also on and basic services and infrastructure including milk booths and Taxi stand have been completed and made operational.

“All these developments at CHD City will definitely make CHD Lifestyle Prime an irresistible offering for our prospective customers,” added Mr. Mittal.

The CHD Lifestyle Prime floors are uniquely designed and have large bedrooms and latest Kitchen settings. All flats in Lifestyle Prime feature a three tier security and alarm systems and are east-west facing, with high tech 24×7 power back up, latest pre-paid card system and dedicated car parking area for each floor.

The Ground Floor of Lifestyle Prime has built up area of 1145 sq.ft. with 3 Bedrooms, Drawing Room and Kitchen and also with attached Utility Area. The First and Second Floors have built up area of 1042 sq.ft. with 2 Bedrooms, Drawing Room and Kitchen with attached utility balcony. While the Ground Floor has access to both front and rear lawns and large verandah in front, the First Floor residents can luxuriate in spacious balconies that open to lush greenery. The inhabitants of the Second Floor will also have the roof terrace rights, apart from the balconies.

“A true grandeur of stately residence awaits our customers at CHD Lifestyle Prime, which has a distinct flavor and ambience that our customers will be proud to call their own. Lifestyle Prime offers a modern and vibrant living atmosphere, where families can enjoy an exclusive and active environment with their own distinct social life and sense of community,” Mr. Mittal further added.

CHD Lifestyle, another project offering independent floors with smaller size area was completely sold out within just 6 weeks of its launch, a noteworthy record of sorts considering the recent slowdown in the real estate industry in India. The follow-up, CHD Lifestyle Grand also received enthusiastic response from the buyers and only a few independent floors are now available for bookings. Hundreds of families have chosen to invest in CHD Lifestyle and CHD Lifestyle Grand because of the company’s inherent strengths and impeccable track record.

It is worth noting that this kind of success is not new to CHD Developers. Last year, one of the company’s commercial projects at CHD City, Karnal Business Centre (KBC), was sold out in 5 months of the launch and this happened during the slowest phase of the Indianreal estate industry . KBC offered prime shop-cum-office (SCO) commercial plots that a progressive business could construct upon as per its unique requirements for any commercial purpose.

Demand for both residential and commercial properties at CHD City underline the fact that it is one of the finest private townships coming up in Karnal, Haryana, located right on NH-1 and midway from Delhi to Chandigarh. NH–1 is being rapidly widened into a 8-lane Expressway, thus substantially reducing the travel time from Delhi to Chandigarh and to Karnal.

Almost 25,000 families are expected to inhabit the CHD City, making it the most sought after destination in Karnal as its residents will be able enjoy the best of amenities in finest dining, shopping, arts and entertainment, which include a mall, food court, hotel, clubhouse, commercial centre, offices, school, hospital, multiplex, dedicated play area for kids, jogging tracks, high speed internet broadband and wi-fi connectivity, 24-hour power backup and round-the-clock security.

CHD City will also feature world-class facilities at its clubhouse, which will include Swimming Pool, Lawn Tennis Courts, Badminton Courts Pool and Billiards, Health Club, Steam, Sauna and Coffee Shop. Even a 5-star hotel is supposed to come up in its vicinity, which will further add to the marketability of the location. This area is right opposite to the Oasis landmark on the NH and is close to Karna Lake and the golf course, which means that there will always be an abundance of greenery, making it a prime location. This fast developing area is, thus, emerging as the most happening suburb of Karnal.

CHD Developers Ltd. has ushered in a new era of building projects for the residential as well as commercial sectors in northern India and has to its credit several residential complexes such as Gayatrilok at Haridwar, Sri Krishnalok at Vrindaban (Mathura) and CHD City, a residential township in Karnal. CHD has successfully delivered projects covering over 700,000 sq.ft. area and proposes to develop more than 10 million sq.ft. area in the next few years.

About CHD Developers

CHD Developers, an ISO 9001:2000 certified company, was originally founded by the farsighted entrepreneur Mr. R.K Mittal, CMD as “Capital Developers Pvt. Ltd.” in the year 1990. Today having proven itself time and again under the progressive leadership of Mr. Gaurav Mittal, Director, CHD Developers is one of the fastest growing ‘Real Estate Major’ in Northern India. CHD’s expertise lie in diverse field including Real EstateDevelopment , Construction, Education and Hospitality where its reckoned for building state of art, elegantly designed, strategically located and high quality Residential Townships, Residential Apartments, Commercial Complexes and Restaurants. CHD believes in providing true value for money and forging strong relationships with its customers as it has a track record of delivering all their projects on time.

Source:http://press-releases.techwhack.com/47547-lifestyle-prime

Convention Hotels India to launch its first property by Quarter One of 2011 in North Goa

Convention Hotels India (CHI) plans to foray into the hospitality segment by launching its first property at Calangute in North Goa by Quarter One of 2011. The company plans to operate in ‘built out’ model in the hospitality space. For the upcoming property CHI has tied up with Holiday Inn for management of the hotel, which will have a room inventory of 136.

CHI also has properties under construction in Goa, Bengaluru and Coimbatore. The approximate amount of investment for these projects as of now is Rs 480 crore, and the company has outlined a total investment of Rs 800 crore for these projects. Hyatt Place Hotel with 220 rooms at Outer Ring Road in Bengaluru will be operational by Quarter Four of 2011; Holiday Inn at Panjim in Goa with 200 keys will be operational by Quarter One of 2012, as well as the Hilton Garden Inn at Coimbatore with 200 keys will be operational by Quarter One of 2012. Depending upon the location and market these properties will cater to MICE, business and leisure clientele.

Source:http://www.hospitalitybizindia.com/detailNews.aspx?aid=7306&sid=1