News: DLF, Indiabulls strike JV to develop properties
(TNN 27/04/2006) Mumbai - It could be the coming together of two big players in the Indian real-estate sector. The Delhi-based real estate major DLF Universal has tied up with Indiabulls Financial Services to form a 50:50 joint venture (JV) called Kenneth Builders & Developers to develop residential and commercial properties across India.
To start with, Kenneth Builders & Developers has acquired 35.8 acres of land from Delhi Development Authority (DDA) through a competitive bidding process for Rs 450 crore. DDA had called for bids to develop residential projects under its public-private partnership project.
The JV company would develop high-end residential properties in the NCR, sources close to the development said. Emaar-MGF and Agarwal group were the other bidders for the DDA plot. Indiabulls shares ended 12% higher than its previous closing at an all time high of Rs 279.
The Indiabulls-DLF JV has floated a special purpose vehicle (SPV) to acquire the DDA property. The newly formed JV will be used to buy commercial and residential properties across India in the future. “Currently, the JV is bidding for more than four properties in Delhi and the NCR.
Depending upon projects, the scope of the JV will be expanded to various parts of India,” sources said. Real estate prices in Gurgaon, Delhi’s fastest-growing suburb, has zoomed 100% in just last one year and virtually every conceivable neighbourhood in the NCR has seen capital values appreciate in excess of 80%.
Sources have indicated that the residential development on the Kalkaji plot will feature high-end residential apartments in private landscaped surroundings and the public-private project will involve the construction of housing units for the economically weaker section of the society with all civic amenities.
The acquired plot is in a prime location at south Delhi between Anand Mai Marg and Delhi-Mehrauli Road. Indiabulls and DLF have between them (separately) acquired three textile mills like Elphinstone Mills, Jupiter Mills and Mumbai Textile Mills from National Textile Mills(NTC) for Rs 441.8 crore, Rs 276 crore and Rs 700 crore respectively in Mumbai.
Indiabulls has also bought 150 acres of land near Sonepat, near the Delhi-Haryana border, for Rs 50 crore. It plans to develop a mixed-use township with residential, commercial and recreational developments.
So far, DLF has completed and has under development projects of over 207m sq ft across its residential, commercial and retail businesses with a spread of 54m sq ft under commercial, 19m sq ft under retail and 134m sq ft under residential projects.
The real estate major is in the process of mobilising around Rs5,000-10,000 crore though a public issue to spread its wing across India. DLF is also aggressively pursuing the developments of SEZs across the country with over half a dozen projects secured or identified in northern India, including Punjab and Haryana.
All real-estate sectors — residential, commercial and retail — are currently witnessing huge growth in demand. New customer segments are emerging. The residential market is not only witnessing huge growth but also the average age for ownership of new homes is declining drastically.
To start with, Kenneth Builders & Developers has acquired 35.8 acres of land from Delhi Development Authority (DDA) through a competitive bidding process for Rs 450 crore. DDA had called for bids to develop residential projects under its public-private partnership project.
The JV company would develop high-end residential properties in the NCR, sources close to the development said. Emaar-MGF and Agarwal group were the other bidders for the DDA plot. Indiabulls shares ended 12% higher than its previous closing at an all time high of Rs 279.
The Indiabulls-DLF JV has floated a special purpose vehicle (SPV) to acquire the DDA property. The newly formed JV will be used to buy commercial and residential properties across India in the future. “Currently, the JV is bidding for more than four properties in Delhi and the NCR.
Depending upon projects, the scope of the JV will be expanded to various parts of India,” sources said. Real estate prices in Gurgaon, Delhi’s fastest-growing suburb, has zoomed 100% in just last one year and virtually every conceivable neighbourhood in the NCR has seen capital values appreciate in excess of 80%.
Sources have indicated that the residential development on the Kalkaji plot will feature high-end residential apartments in private landscaped surroundings and the public-private project will involve the construction of housing units for the economically weaker section of the society with all civic amenities.
The acquired plot is in a prime location at south Delhi between Anand Mai Marg and Delhi-Mehrauli Road. Indiabulls and DLF have between them (separately) acquired three textile mills like Elphinstone Mills, Jupiter Mills and Mumbai Textile Mills from National Textile Mills(NTC) for Rs 441.8 crore, Rs 276 crore and Rs 700 crore respectively in Mumbai.
Indiabulls has also bought 150 acres of land near Sonepat, near the Delhi-Haryana border, for Rs 50 crore. It plans to develop a mixed-use township with residential, commercial and recreational developments.
So far, DLF has completed and has under development projects of over 207m sq ft across its residential, commercial and retail businesses with a spread of 54m sq ft under commercial, 19m sq ft under retail and 134m sq ft under residential projects.
The real estate major is in the process of mobilising around Rs5,000-10,000 crore though a public issue to spread its wing across India. DLF is also aggressively pursuing the developments of SEZs across the country with over half a dozen projects secured or identified in northern India, including Punjab and Haryana.
All real-estate sectors — residential, commercial and retail — are currently witnessing huge growth in demand. New customer segments are emerging. The residential market is not only witnessing huge growth but also the average age for ownership of new homes is declining drastically.
posted by InCar Group Press Room at 12:20
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