DLF, the largest realtor according to market capitalisation, is close to elling off its biggest non-core asset Aman Resorts to the China based HNA group, said sources close to the development.
The source adds, "HNA is running ahead in the race and close to finalising the deal. The valuation is slighlty above Rs 2000 crore. The bid amounts recieved from the Malaysian sovereign wealth fund Khazanah, luxury fashion group Louis Vuitton and Kingdom Holdings which owns the five star hotel chain Four Seasons were in the range of Rs 1800- 2000 crore for the property."
DLF spokesperson, Sanjey Roy, replied in an email, "We do not comment on market speculations."
DLF is expected to announce the deal by mid-January. Goldman Sachs and Citi group had been advising DLF on the deal. It is said that the founder of Aman Resorts, Adrian Zecha, was also a part of the final decision. DLF had bought 97 per cent stake in the company for a valuation of $400 million in 2007, during the realty boom. Since the downturn in the realty sector, DLF has been looking around for a buyer for this property.
An analyst tracking the company said, "They have been looking for a buyer since last two years for Aman Resorts, they were looking to raise Rs 2500 crore from the property which none of the buyers are looking to shell out. Also it is important whether it is an all cash deal or will there be staggered payments, as last week Crisil downgraded its various short term debt program worth Rs 237.3 billion according to its assesment that the debt levels may continue to remain high due to delay in disposal of assets non core assets and weakening cash flows. They really have to sell the assets now and generate cash on their books"
HNA Hotels and Resorts Group is part of the HNA group based out of China, which is headed by Chen Feng, the board chairman of the group. The hotel subsidiary operates more than 40 luxury hotels and resorts in China and has three hotel assets in Brussels and Belgium.
The Aman resorts has 25 assets across Thailand, Bhutan, Cambodia, China, France,Indonesia, Laos, Montenegro, Morocco, Philippines, Sri Lanka, the Turks and Caicos Islands and the US. It has three properties in India. After the stake offloading, DLF will retain the Delhi Aman property. The other two assets are in Rajasthan called the Aman-i-Khas and Amanbagh which will exchange hands.
On Aman sale, Saurabh Chawla, executive director of DLF had said at the end of the last quarter, "We have four bids in the second round and we are in the process of evaluating the bids, we hope to make a closure on this deal by next quarter end."
At the end of the day, DLF's stock closed at Rs 179.15 per share, down 2.13 per cent on BSE.
note written on January 2, 2012
Wednesday, January 11, 2012
Beating blues, realty consultants and data research firms line up expansion plans
Despite a lacklustre performance from domestic realtors this year, international property consultants and data research firms are gearing up for big expansion plans in the country.
IPCs and research firms are leaving no stone unturned in filing all the gaps in offerings from their stable and looking at newer avenues for product differentiation. The strategy includes a foray into newer cities to entering neighbouring the growing Sri Lankan realty market and providing realty data index to the banking regulator. Scientific data research for general home buyers is on also on the cards.
International property consultants (IPC), Jones Lang LaSalle India (JLL), Knight Frank, DTZ and research firms P E Analytics and Liases Foras have already readied a corpus.
JLL which operates in 11 cities has lined up key launches for next year which includes focussing on its Sri Lankan business and starting its industrial practice.
Anuj Puri, Chairman and Country Head for JLL in India, says, “There are a lot of developers who want to launch projects in Sri Lanka and thus we are starting our operations there and also we are going to launch operations in two more cities in tier III which are Ahmedabad and Bhuwaneshwar. We are also getting into residential services with more depth and we will start our industrial practice in the country.”
Puri adds, “There is a lot of interest from American and European manufacturers to set up manufacturing units in areas like Chennai, Gujarat, Pune , Baroda, Delhi-Jaipur industrial
belt. They want to manufacture goods and send them back to their countries and also there is a talent pool available with lower labour costs.”
In the Asia Pacific region, for the September quarter, 2011, JLL reported revenues of $201 million as compared to $165 million for the same period in 2010, an increase of 22 percent, 12 per cent. The company attributed its increase in revenues to Greater China and India.
Peer, Knight Frank India, is looking to increase its presence in the eastern belt of the country.
Pranab Datta, Vice Chairman and managing director, of the company, said, “Even though the environment is becoming turbulent with the global turmoil, we believe there is still a lot of opportunity in the Indian market. We are expanding our presence in West Bengal while consolidating in existing markets. Also we are going to look at new products which will come by the last quarter of this financial year. In our research portfoliowe are looking at more information based analysis for our clients.”
Datta adds, “Knight Frank's Asia Pacific region contributes a large chunk to its entire revenues and we are adopting multi- pronged strategy to contribute to the growth.”
Consultants are betting that realty industry will improve by the end of the calendar year 2012, and thus they want to be ready to ride the expected upturn.
Anshul Jain, Chief Executive Officer, DTZ India, an IPC based out of Gurgaon says, “We are really looking at cautious growth in the sector and in the coming year we are expanding our service line in the commercial office space in various cities as we expect investments to be back in the sector by the end of 2012.”
P E Analytics, which ows and operates Prop Equity, an online subscription based real estate data platform is planning to add six new cities in its database in 2012.
Samir Jasuja, Founder and Chief Executive Officer at PropEquity, said, “We are collaborating with a banking regulatory body and a commodity exchange to develop housing starts and realty indices We are also looking at launching three new products, Collateral Risk Management (CRM) targeted at financial institutions, a business to consumer product for retail customers, and Catchment Area Analysis for developers, which are expected to go live in the next six months in phases.”
Jasuja adds, “We are very well funded for our expansion plans, and if everything goes according to our plan, then we are looking at a Nasdaq listing in the next 3-4 years.”
Real estate rating and research firm, Liases Foras, founded by Pankaj Kapoor, says, “We are looking and testing to come up with a scientific research product in next 3-4 months. We are also looking at valuations of properties and also we will be expanding in other 3-4 cities for data collection.”
IPCs and research firms are leaving no stone unturned in filing all the gaps in offerings from their stable and looking at newer avenues for product differentiation. The strategy includes a foray into newer cities to entering neighbouring the growing Sri Lankan realty market and providing realty data index to the banking regulator. Scientific data research for general home buyers is on also on the cards.
International property consultants (IPC), Jones Lang LaSalle India (JLL), Knight Frank, DTZ and research firms P E Analytics and Liases Foras have already readied a corpus.
JLL which operates in 11 cities has lined up key launches for next year which includes focussing on its Sri Lankan business and starting its industrial practice.
Anuj Puri, Chairman and Country Head for JLL in India, says, “There are a lot of developers who want to launch projects in Sri Lanka and thus we are starting our operations there and also we are going to launch operations in two more cities in tier III which are Ahmedabad and Bhuwaneshwar. We are also getting into residential services with more depth and we will start our industrial practice in the country.”
Puri adds, “There is a lot of interest from American and European manufacturers to set up manufacturing units in areas like Chennai, Gujarat, Pune , Baroda, Delhi-Jaipur industrial
belt. They want to manufacture goods and send them back to their countries and also there is a talent pool available with lower labour costs.”
In the Asia Pacific region, for the September quarter, 2011, JLL reported revenues of $201 million as compared to $165 million for the same period in 2010, an increase of 22 percent, 12 per cent. The company attributed its increase in revenues to Greater China and India.
Peer, Knight Frank India, is looking to increase its presence in the eastern belt of the country.
Pranab Datta, Vice Chairman and managing director, of the company, said, “Even though the environment is becoming turbulent with the global turmoil, we believe there is still a lot of opportunity in the Indian market. We are expanding our presence in West Bengal while consolidating in existing markets. Also we are going to look at new products which will come by the last quarter of this financial year. In our research portfoliowe are looking at more information based analysis for our clients.”
Datta adds, “Knight Frank's Asia Pacific region contributes a large chunk to its entire revenues and we are adopting multi- pronged strategy to contribute to the growth.”
Consultants are betting that realty industry will improve by the end of the calendar year 2012, and thus they want to be ready to ride the expected upturn.
Anshul Jain, Chief Executive Officer, DTZ India, an IPC based out of Gurgaon says, “We are really looking at cautious growth in the sector and in the coming year we are expanding our service line in the commercial office space in various cities as we expect investments to be back in the sector by the end of 2012.”
P E Analytics, which ows and operates Prop Equity, an online subscription based real estate data platform is planning to add six new cities in its database in 2012.
Samir Jasuja, Founder and Chief Executive Officer at PropEquity, said, “We are collaborating with a banking regulatory body and a commodity exchange to develop housing starts and realty indices We are also looking at launching three new products, Collateral Risk Management (CRM) targeted at financial institutions, a business to consumer product for retail customers, and Catchment Area Analysis for developers, which are expected to go live in the next six months in phases.”
Jasuja adds, “We are very well funded for our expansion plans, and if everything goes according to our plan, then we are looking at a Nasdaq listing in the next 3-4 years.”
Real estate rating and research firm, Liases Foras, founded by Pankaj Kapoor, says, “We are looking and testing to come up with a scientific research product in next 3-4 months. We are also looking at valuations of properties and also we will be expanding in other 3-4 cities for data collection.”
Sunteck Realty to acquire Goregaon industrial parcel for Rs 400-440 crore
Even though realty sales have come to a standstill, realty developers have not yet given up on buying the land parcel which has caught their attention.
The Mumbai based Kamal Khetan, promoted Sunteck Realty, has acquired a 15 acre industrial land parcel near Inrobit mall at Goregaon for Rs 400-440 crore, said sources privy to the deal.
A senior official who was part of the transaction, said, “International property consultants Jones Lang LaSalle India had the mandate to sell off that cluster of industrial gala in Goregaon and they have been looking for a buyer since early 2011. They had shown the parcel to a few developers and finally Sunteck has locked the deal. It will develop high end residential project on the same. They are working out some final intricacies of the deal regarding the usuage area etc.”
When contacted, Sunteck Realty did not wish to comment on the same.
Sources say that a private equity fund will step in and the transaction is divided into two blocks.
Sunteck has partnership with the Ajay Piramal Group which has a jointly floated company called Starlight Construction which is building the high end residences in Bandra Kurla Complex and Sunteck is also backed by real estate focussed private equity fund Kotak Realty Fund which holds 9.5 per cent stake in the company. At the end of March 2011, the company’s debt to equity was 0.4x.
An analyst tracking the company in condition of anonymity, said, “ It is a fairly good deal for Sunteck keeping in mind that residential apartments are selling around Rs 8000-11000 per sft in that area. It will probably have an asset build up area of close to 3-4 million sft which is a good proposition for the developer. Also with the funds flowing in from the partnerships it is a good deal to bag in this market.”
In July 2010, Sunteck had acquired a 7 acre land parcel in SV Road in Goregaon for Rs 124 crore under its parent company from a joint family after negotiating for a year. Sunteck was planning to launch a luxury residential project on the same and had planned to launch the project in the range of Rs 10, 000- 11, 000 per sft.
In the end of the last quarter, the promoters have increased their shareholding in the company to 70.08 per cent as compared to 66.94 per cent at the end of the June quarter this financial year, a jump of 3.14 per cent.
At the end of the day Sunteck Realty’s shares closed at Rs 257. 30 per share, a fall of 16.46 per cent on the Bombay Stock Exchange.
Note: It was written on Tuesday, January 10.
The Mumbai based Kamal Khetan, promoted Sunteck Realty, has acquired a 15 acre industrial land parcel near Inrobit mall at Goregaon for Rs 400-440 crore, said sources privy to the deal.
A senior official who was part of the transaction, said, “International property consultants Jones Lang LaSalle India had the mandate to sell off that cluster of industrial gala in Goregaon and they have been looking for a buyer since early 2011. They had shown the parcel to a few developers and finally Sunteck has locked the deal. It will develop high end residential project on the same. They are working out some final intricacies of the deal regarding the usuage area etc.”
When contacted, Sunteck Realty did not wish to comment on the same.
Sources say that a private equity fund will step in and the transaction is divided into two blocks.
Sunteck has partnership with the Ajay Piramal Group which has a jointly floated company called Starlight Construction which is building the high end residences in Bandra Kurla Complex and Sunteck is also backed by real estate focussed private equity fund Kotak Realty Fund which holds 9.5 per cent stake in the company. At the end of March 2011, the company’s debt to equity was 0.4x.
An analyst tracking the company in condition of anonymity, said, “ It is a fairly good deal for Sunteck keeping in mind that residential apartments are selling around Rs 8000-11000 per sft in that area. It will probably have an asset build up area of close to 3-4 million sft which is a good proposition for the developer. Also with the funds flowing in from the partnerships it is a good deal to bag in this market.”
In July 2010, Sunteck had acquired a 7 acre land parcel in SV Road in Goregaon for Rs 124 crore under its parent company from a joint family after negotiating for a year. Sunteck was planning to launch a luxury residential project on the same and had planned to launch the project in the range of Rs 10, 000- 11, 000 per sft.
In the end of the last quarter, the promoters have increased their shareholding in the company to 70.08 per cent as compared to 66.94 per cent at the end of the June quarter this financial year, a jump of 3.14 per cent.
At the end of the day Sunteck Realty’s shares closed at Rs 257. 30 per share, a fall of 16.46 per cent on the Bombay Stock Exchange.
Note: It was written on Tuesday, January 10.
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