After several failed attempts to lease out its six-acre Wadala plot for an iconic tower, the Mumbai Metropolitan Region Development Authority (MMRDA) has tweaked tender conditions, which industry sources say, may help it fetch a record price when bids are opened on 29th June 2010. With a reserve price set at Rs 1,980 crore and a deferred payment schedule spread over five years with a 10% interest annually, the MMRDA’s tender has suddenly generated a lot of interest among Mumbai’s leading developers.

Till 2nd July 2010, almost a dozen real estate companies had purchased the tender document. In 2006, Reliance Industries had paid over Rs 1,100 crore for a plot (18 acres) in the BKC. So, what makes this land—which had no takers till recently—turns into hot property? Although earlier earmarked for a mixed-use tower (commercial and other use) for which not many showed any interest, the MMRDA recently said the winning bidder could now even set up an entirely residential project. Further, the authority also permitted construction of multiple towers instead of a single tall skyscraper.

“With a 100% residential potential, it would not be a surprise if it turns out be the largest land deal in the city,” claimed a builder, adding that there will be more takers for residential than commercial. The Wadala plot has a development potential of close to 60 lakh sq ft. It was initially planned as a 101-storey commercial tower, but the MMRDA had to scale it down after it found no takers, besides facing objection from the civil aviation department.

Comment (0) Read More...

<!-- /* Font Definitions */ @font-face {font-family:"Cambria Math"; panose-1:2 4 5 3 5 4 6 3 2 4; mso-font-charset:0; mso-generic-font-family:roman; mso-font-pitch:variable; mso-font-signature:-1610611985 1107304683 0 0 159 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-unhide:no; mso-style-qformat:yes; mso-style-parent:""; margin-top:0in; margin-right:0in; margin-bottom:10.0pt; margin-left:0in; line-height:115%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Arial","sans-serif"; mso-ascii-font-family:Arial; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:Arial; mso-fareast-theme-font:minor-latin; mso-hansi-font-family:Arial; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi; mso-bidi-language:EN-US;} a:link, span.MsoHyperlink {mso-style-priority:99; color:blue; mso-themecolor:hyperlink; text-decoration:underline; text-underline:single;} a:visited, span.MsoHyperlinkFollowed {mso-style-noshow:yes; mso-style-priority:99; color:purple; mso-themecolor:followedhyperlink; text-decoration:underline; text-underline:single;} .MsoChpDefault {mso-style-type:export-only; mso-default-props:yes; mso-ascii-font-family:Arial; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:Arial; mso-fareast-theme-font:minor-latin; mso-hansi-font-family:Arial; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi; mso-bidi-language:EN-US;} .MsoPapDefault {mso-style-type:export-only; margin-bottom:10.0pt; line-height:115%;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.0in 1.0in 1.0in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} -->

NCR - based real estate developer LandCraft Developers Pvt Ltd has announced the launch of its second residential project - River Heights Status - on NH 58, which is coming up adjacent to its first project River Heights on NH-58 at Raj Nagar Extn in Ghaziabad, Uttar Pradesh.

The project’s 756 residential units are being developed on an 8-acre prime property comprising of 2 and 3 BHK units. The project is scheduled to be completed within a period of 30 months from the date of commencement of construction work. The project will have 2 & 3 BKH options ranging from 823 sq ft to 1244 sq ft and starting at Rs 3.08 lakh onwards.

Speaking on the occasion, Manu Garg, director, LandCraft Developers, said: “As part of our continuing efforts in creating value for customers in today’s challenging environment, we have done everything possible, based on the feedback from our old and prospective customers, to make this new venture unique in many respects.”

Comment (0) Read More...

State Bank of India (SBI), India’s largest lender, is neck and neck with mortgage leader and pioneer HDFC in terms of home loans outstanding, according to data from Icra, the rating agency. The bank is aiming to increase its home loan portfolio (opening balance of loans plus loans disbursed less repaid in a year) by 31% this year, the same as last fiscal, but the pie will be bigger because of a larger base or compounding. “We have a client base of more than 15 lakh individuals and we are aiming to add another 4 lakh this year,” said a top bank official. “We added about 2.92 lakh last year,” the official said, requesting anonymity.

The person did not say if more teaser rate type plans are on the anvil.Such loans were primarily behind the Rs 17,000 crore burgeoning of the bank’s portfolio last fiscal. Last fiscal, HDFC clocked a 15% in outstanding loans (new disbursals less repayments) on a 27% growth in disbursements. HDFC’s outstanding loans have grown by 30% only in fiscal 2008, while it has remained around 15-16% in the next two years. The pace of sanctions continues to be frenetic. “We have sanctioned loans worth Rs 3,650 crore spread across 31,400 accounts in April and May this year,” said the official. That, annualised, comes to more than Rs 22,000 crore —exactly the amount of outstanding the bank hopes to have for the year.

The special home loan scheme launched by SBI last year gave a boost to the loan growth in this segment. The scheme offers low fixed interest rates for initial years and floating rates thereafter. It has been revised several times but the fixed and floating rate combination has been maintained throughout. With the base rate coming in from next month, certain revisions are again expected in the scheme. “We will be able to take a call on that only when there is clarity on the base rate that is chosen for the bank,” said the official indicating that the decision will be taken only a few days before base rate sets in. It is expected that the interest rates on the scheme will be revised as per the base rate while the fixed and floating combination will be retained.

Comment (0) Read More...

Mumbai : About a dozen companies,mostly in the real estate sector, have been told by the Reserve Bank of India (RBI) to restructure the deals they have cut with foreign investors.

These local firms have recently brought in foreign direct investment (FDI) by selling convertible papers notes that will convert into shares after a date to offshore funds and strategic players.

Comment (0) Read More...

London: Property repossessions and mortgage arrears in UK fall in first quarter of 2010Arrears and repossessions in the UK are down but there is still vulnerability in the system as the property market remains fragile, experts are warning.

The latest figures from the Council of Mortgage Lenders show that repossessions and mortgages entering arrears both fell in the first quarter of the year. However, the CML warned that this was no cause to complacency as a large number of households are ‘just coping’ and are vulnerable to any further shocks arising from the current economic uncertainty.

Comment (0) Read More...