Nearly a year after the demand slowdown, the property market sentiments seem to be improving, according to real estate companies. Builders across the market segment are claiming that the last two months have witnessed a surge in bookings and interest, ending months of anxiety on cash flows that had led to project delays, and left customers fuming.
Adding to the cheer in the market is also the institutional interest in real estate space. A slew of realtors, including HDIL and Parsvnath Developers, are following the footsteps of Unitech and Indiabulls Real Estate to line-up QIP issues in a bid to ease the debt burden.
Analysts watching the real estate space, however, say that with each macro market behaving differently, it is difficult to generalise the mood in the property market. While they admit that buyer interest in certain projects in specific locations seems to be back, they also believe it is too early to term it a “demand revival”.
“We will wait to see the cash flow situation of listed real estate companies at the end of the quarter before cheering the market,” they say. Also, there seems to be unanswered questions on who is really picking up residential inventory.
An industry insider pointed out that in specific cases in North India it is not unusual for brokers to drive-up the demand by cornering housing inventory at steep discounts from players. These brokers then offload the inventory to end-users. “That trend may still be there. So one has to wait and watch before declaring that the end-user demand is indeed back in the property market,” the person said.
Realtors, however, feel that the general sentiments are lifting.
Earlier this week, two realty firms — BPTP and Jaypee Greens — said they received “overwhelming” response to their affordable housing projects in Delhi NCR. BPTP said its bookings were nearly four times more than the number of flats on offer at Faridabad where it is selling ‘BPTP Park Elite Floors’. “Launched on May 9, with an initial target of 1,000 units, booking had to be closed within 15 days due to the heavy demand. By the closing date of May 26, the company had received a booking of 3,700 units,” BPTP said.
Jaypee Greens (a real estate division of Jaiprakash Associates) too said its 3,300 apartments were booked within 24-hours of the launch of its residential project Jaypee Greens AMAN at Noida-Greater Noida Expressway.
And similar sentiments are being echoed in other parts of the country as well. For instance, in its Cosmopolis project in Bhubaneswar, Assotech says that it has signed up 100 booking in the last 45 days alone. The price tag for the project is Rs 27-46 lakh. The company said the demand for its other projects in Gwalior and Rudrapur too are looking up.
“Yes, things are improving. While it is still difficult to gauge the medium-term outlook, the elections and the clear mandate coupled with some improved buying sentiments have resulted in a flow of bookings. Customers in smaller markets, who need a house for their own requirements, are willing to take the plunge. The investors will come in at a later stage,” says Mr Sanjeev Shrivastava, CMD of Assotech Group.
A senior official of Lodha Group — a builder with presence in and around Mumbai and upcoming projects in Hyderabad and Pune — feels that the “hype” about slowdown had been overblown, and that there has been a turnaround post-December 2008.
The company claims that it has sold 2.5 million sq. ft of residential space in the last five months against a third of that level during July-December.
“The demand-supply mismatch still exists, and so there cannot be a prolonged recession in demand for rightly priced homes,” says Mr Abhishek Lodha, Director, Lodha Group.
In April, DLF said it got bookings for 1,356 apartments (2 million sq.ft) in a single day in its project Capital Greens at New Delhi. A presentation by Unitech to its investors earlier this month, put the area sold by the company between April 1 and May 15, at 2.5 million sq.ft.
The company said that the overall sale value of the properties which had been booked will add up to about Rs 850 crore. Unitech has already outlined plans to launch 40 projects across 15 cities, including Delhi NCR, Mumbai, Kolkata, Mohali/Chandigarh, Chennai and Lucknow.
Real estate companies have discovered the market sweet-spot in the affordable and mid-income housing space, and are tuning strategies accordingly, a senior Unitech official recently told Business Line. Though the claims of the real estate companies point towards some recovery in the market, analysts are waiting to see how events unfold in coming months.
Sunday, May 31, 2009
Wednesday, May 27, 2009
Tata Realty to raise $1 Billion
Tata Realty and Infrastructure said it plans to raise a $1 billion (Rs 4,700 crore) infrastructure fund to support projects worth Rs 20,000 crore that will be executed over the next three years. TRIL is a wholly-owned subsidiary of Tata Sons.
The company will invest Rs 11,000 crore in real estate, Rs 5,000 crore on road projects and Rs 4,000 crore on other infrastructure projects, said Mr Sanjay Ubale, Managing Director & CEO, at a news conference here on Wednesday. Around 20 per cent of the company’s earlier offshore fund of $700 million has been deployed, he said. Separately, the company will raise Rs 1,400 crore in debt, said company officials.
Some of the larger projects won by TRIL include three SEZs – one a 25-acre SEZ at Chennai for Rs 3,800 crore, the other two being IT SEZs in Ahmedabad and in Pune. A 7-lakh sq ft residential complex in Amritsar is under development, and a 35-acre residential and mixed-use project is being evaluated at Gurgaon.
Although the real estate market is still sluggish, this is not an inappropriate time for developing SEZ projects or malls, said Mr Ubale: “Real estate is cyclical and our projects will probably be ready as the markets pick up. In addition we do stand to benefit from lower commodity prices.”
Roads, metro and mono-rail and airport projects are also under consideration: TRIL has tie-ups with Mitsubishi for bidding for metro projects; with Grandi Stazioni of Italy for redevelopment of New Delhi Railway station; with Changi Airports for Amritsar and Udaipur airports; and with Atlantia spA of Italy for roads and highways.
A recent win has been the four-laning National Highway Authority project of a 110-km Pune-Solapur stretch at Rs 1,400 crore, in tie-up with the Italian company. The SPV, which will undertake the project, will be a 50:50 joint venture between TRIL and Atlantia, each putting in Rs 280 crore, with debt requirement for the project at Rs 970 crore.
The company will invest Rs 11,000 crore in real estate, Rs 5,000 crore on road projects and Rs 4,000 crore on other infrastructure projects, said Mr Sanjay Ubale, Managing Director & CEO, at a news conference here on Wednesday. Around 20 per cent of the company’s earlier offshore fund of $700 million has been deployed, he said. Separately, the company will raise Rs 1,400 crore in debt, said company officials.
Some of the larger projects won by TRIL include three SEZs – one a 25-acre SEZ at Chennai for Rs 3,800 crore, the other two being IT SEZs in Ahmedabad and in Pune. A 7-lakh sq ft residential complex in Amritsar is under development, and a 35-acre residential and mixed-use project is being evaluated at Gurgaon.
Although the real estate market is still sluggish, this is not an inappropriate time for developing SEZ projects or malls, said Mr Ubale: “Real estate is cyclical and our projects will probably be ready as the markets pick up. In addition we do stand to benefit from lower commodity prices.”
Roads, metro and mono-rail and airport projects are also under consideration: TRIL has tie-ups with Mitsubishi for bidding for metro projects; with Grandi Stazioni of Italy for redevelopment of New Delhi Railway station; with Changi Airports for Amritsar and Udaipur airports; and with Atlantia spA of Italy for roads and highways.
A recent win has been the four-laning National Highway Authority project of a 110-km Pune-Solapur stretch at Rs 1,400 crore, in tie-up with the Italian company. The SPV, which will undertake the project, will be a 50:50 joint venture between TRIL and Atlantia, each putting in Rs 280 crore, with debt requirement for the project at Rs 970 crore.
Sunday, May 24, 2009
More realty cos firming up fund-raising plans
With recent qualified institutional placements (QIPs) of Unitech and Indiabulls Real Estate raking-in over Rs 4,000 crore, market watchers believe that more than a half a dozen real estate companies, including Parsvnath Developers, Omaxe and Sobha Developers, could be next in line for fund raising.
Housing Development & Infrastructure Ltd (HDIL) on Saturday sustained the fund-raising momentum in the realty space when it announced plans to raise over Rs 2,800 crore from sale of shares.
Delhi-based Parsvnath Developers is also mulling various options, including a QIP, to raise overall Rs 500-800 crore in the current quarter. According to a person involved with the plans, Parsvnath would use the funds for ongoing projects and lowering its debt obligations, that are currently pegged at Rs 1,600 crore.
When contacted, the Parsvnath Chairman, Mr Pradeep Jain, declined to comment on the company’s plans but said that the market sentiments were strong. “There is an investor appetite for real estate stocks and also valuations at the current level are attractive,” Mr Jain said.
Similarly, Omaxe is looking at fund-raising options such as QIP or a preferential placement although just how much it would look to raise, could not be ascertained. Omaxe’s total debt currently stands at Rs 1,600 crore and the company hopes to trim this to Rs 1,000 crore by the fiscal-end. Hence, in case of Omaxe too, part of the money raised could go into retiring debt and the balance into new and existing projects, a source pointed out.
An e-mail sent to the external communications agency of Sobha Developers went unanswered. Macquarie analyst Mr Unmesh Sharma said that there could be two rounds of capital raising in the realty pack. “In the first round, we will see companies raising capital to repair their balance sheet, and in second phase some companies will go for share sale to opportunistically purchase assets,” he said.
In April, Unitech’s QIP issue of Rs 1,625 crore lifted the flagging sentiments in the real estate sector; this was followed by a stake sale by DLF promoters, and a QIP issue by Indiabulls Real Estate.
According to a Unitech official, nearly 95 per cent of Unitech’s QIP issue was placed with FIIs such as HSBC, Prudential, Orient Global, Sandstone Capital and Och-ziff.
Earlier this month, promoters of DLF Ltd offloaded 9.9 per cent stake in the company to institutional investors, for Rs 3,860 crore. Capital International Fund bought the largest chunk of DLF shares, while other investors were HSBC, Fidelity and T Rowe Price. Indiabulls Real Estate too raised Rs 2,656 crore through issue of shares on institutional placement basis.
Housing Development & Infrastructure Ltd (HDIL) on Saturday sustained the fund-raising momentum in the realty space when it announced plans to raise over Rs 2,800 crore from sale of shares.
Delhi-based Parsvnath Developers is also mulling various options, including a QIP, to raise overall Rs 500-800 crore in the current quarter. According to a person involved with the plans, Parsvnath would use the funds for ongoing projects and lowering its debt obligations, that are currently pegged at Rs 1,600 crore.
When contacted, the Parsvnath Chairman, Mr Pradeep Jain, declined to comment on the company’s plans but said that the market sentiments were strong. “There is an investor appetite for real estate stocks and also valuations at the current level are attractive,” Mr Jain said.
Similarly, Omaxe is looking at fund-raising options such as QIP or a preferential placement although just how much it would look to raise, could not be ascertained. Omaxe’s total debt currently stands at Rs 1,600 crore and the company hopes to trim this to Rs 1,000 crore by the fiscal-end. Hence, in case of Omaxe too, part of the money raised could go into retiring debt and the balance into new and existing projects, a source pointed out.
An e-mail sent to the external communications agency of Sobha Developers went unanswered. Macquarie analyst Mr Unmesh Sharma said that there could be two rounds of capital raising in the realty pack. “In the first round, we will see companies raising capital to repair their balance sheet, and in second phase some companies will go for share sale to opportunistically purchase assets,” he said.
In April, Unitech’s QIP issue of Rs 1,625 crore lifted the flagging sentiments in the real estate sector; this was followed by a stake sale by DLF promoters, and a QIP issue by Indiabulls Real Estate.
According to a Unitech official, nearly 95 per cent of Unitech’s QIP issue was placed with FIIs such as HSBC, Prudential, Orient Global, Sandstone Capital and Och-ziff.
Earlier this month, promoters of DLF Ltd offloaded 9.9 per cent stake in the company to institutional investors, for Rs 3,860 crore. Capital International Fund bought the largest chunk of DLF shares, while other investors were HSBC, Fidelity and T Rowe Price. Indiabulls Real Estate too raised Rs 2,656 crore through issue of shares on institutional placement basis.
Thursday, May 21, 2009
Realty stocks witness renewed interest
As things start to look better for the economy and capital markets, brokers’ outlook for real estate sector stocks have also taken a positive turn.
The BSE realty index surged 40.89 per cent in the last week as against 15.7 per cent rise in the Sensex.
These scrips are also among the most traded.
While most of the index heavyweights in the Sensex such as Reliance, L&T, SBI and ICICI Bank saw a two-week average traded quantity between 9.5 lakh and 36.3 lakh shares; DLF’s two-week average traded quantity was 2.29 crore shares, while Unitech saw an average of 2.2 crore.
On the NSE, DLF and Unitech figured in the most traded list on Thursday. A total of 6.7 crore Unitech shares exchanged hands today and 2.05 crore of DLF.
Marketmen said that realty stocks were among the most beaten down in the market fall.
Good recovery
“From their peak, the values of the realty stocks have fallen by 95 per cent and from the lows these stocks have recovered quiet well,” said Mr Vishal Goenka, Chief Executive Officer at Kantilal Chhaganlal Securities. “People might feel that the corrections in these stocks were over done and there could not be much downside from here on,” Mr Goenka said.
Marketmen also attributed the rise in realty stocks to a string of good news that has come for the realty sector.
QIP placements
“The successful qualified institutional placements (Unitech) and stake sales of some key real estate companies (DLF) have led to investors thronging to these counters,” said an official with a US-based investment bank.
“These are very liquid counters and are also very high beta stocks, and with the markets all pepped up these are the stocks which will see major action ,” said Mr Hardeep Dayal, Managing Director at Centrum Realty and Infrastructure.
Broking firms have become positive towards the realty stocks now.
Macquarie had recently upgraded its rating on DLF from “Underperform to Neutral”.
“DLF has now come out of ‘the boy who cried wolf’ phase with this capital raising. The de-leveraging story is clearly under way. From an operating cash flow perspective, initial signs are encouraging,” stated the report.
Enam Securities has upgraded Unitech and HDIL from “Underperformer to Neutral”.
Indiabulls Real Estate and DLF are among the real estate scrips on Motilal Oswal’s “Buy” lists.
The BSE realty index surged 40.89 per cent in the last week as against 15.7 per cent rise in the Sensex.
These scrips are also among the most traded.
While most of the index heavyweights in the Sensex such as Reliance, L&T, SBI and ICICI Bank saw a two-week average traded quantity between 9.5 lakh and 36.3 lakh shares; DLF’s two-week average traded quantity was 2.29 crore shares, while Unitech saw an average of 2.2 crore.
On the NSE, DLF and Unitech figured in the most traded list on Thursday. A total of 6.7 crore Unitech shares exchanged hands today and 2.05 crore of DLF.
Marketmen said that realty stocks were among the most beaten down in the market fall.
Good recovery
“From their peak, the values of the realty stocks have fallen by 95 per cent and from the lows these stocks have recovered quiet well,” said Mr Vishal Goenka, Chief Executive Officer at Kantilal Chhaganlal Securities. “People might feel that the corrections in these stocks were over done and there could not be much downside from here on,” Mr Goenka said.
Marketmen also attributed the rise in realty stocks to a string of good news that has come for the realty sector.
QIP placements
“The successful qualified institutional placements (Unitech) and stake sales of some key real estate companies (DLF) have led to investors thronging to these counters,” said an official with a US-based investment bank.
“These are very liquid counters and are also very high beta stocks, and with the markets all pepped up these are the stocks which will see major action ,” said Mr Hardeep Dayal, Managing Director at Centrum Realty and Infrastructure.
Broking firms have become positive towards the realty stocks now.
Macquarie had recently upgraded its rating on DLF from “Underperform to Neutral”.
“DLF has now come out of ‘the boy who cried wolf’ phase with this capital raising. The de-leveraging story is clearly under way. From an operating cash flow perspective, initial signs are encouraging,” stated the report.
Enam Securities has upgraded Unitech and HDIL from “Underperformer to Neutral”.
Indiabulls Real Estate and DLF are among the real estate scrips on Motilal Oswal’s “Buy” lists.
Wednesday, May 20, 2009
Unitech sells office complex for Rs 500 Crore
In a boost to the company’s plans to lower debt obligation, real estate firm Unitech Ltd has sold an office complex in Saket, New Delhi, to an high networth individual (HNI) for about Rs 500 crore. The company is hoping that the latest transaction, alongwith the recent sale of the Marriott Courtyard, and other assets currently on the block, would enable it to raise Rs 1,000 crore by the end of the quarter.
Sources close to the development said that the office complex - which was initially intended for Unitech’s use till a cash-crunch prompted it to put-up the property in the market - has 2.10 lakh sq ft of space.
The source refused to divulge the identity of the new owner, but said that the money from the current transaction would come by June-end.
This is the second asset sale by Unitech.
Earlier this year, the realtor sold-off its hotel project in Gurgaon for Rs 235 crore to Mr Roop Madan, Managing Director of the Delhi-based Sanya Motors.
Of the total proceeds from that sale, Unitech has already received 45 per cent of the payment, while balance 55 per cent is expected to flow in this month, sources claimed.
The company is also scouting for a buyer for its serviced apartment project - Marriott Executive Apartments; and has also put on the block yet another hotel property in Gurgaon.
Serviced apartment project
The serviced apartments project is located in Gurgaon near the Unitech Cyber Park and the Unitech Greenwood City on 3.39-acre of land; the serviced apartments along with an office block has been designed by the Seattle-based Callison Inc and will be operated by Marriott as Marriott Executive Apartments.
Unitech’s current debt is pegged at Rs 7,800 crore and it has stated its intention to reduce the debt position to Rs 6,000 crore-6,500 crore by the end of the current financial year.
As part of the asset sale strategy, the company is also looking to sell plots (hospitals and schools) in its townships.
Sources close to the development said that the office complex - which was initially intended for Unitech’s use till a cash-crunch prompted it to put-up the property in the market - has 2.10 lakh sq ft of space.
The source refused to divulge the identity of the new owner, but said that the money from the current transaction would come by June-end.
This is the second asset sale by Unitech.
Earlier this year, the realtor sold-off its hotel project in Gurgaon for Rs 235 crore to Mr Roop Madan, Managing Director of the Delhi-based Sanya Motors.
Of the total proceeds from that sale, Unitech has already received 45 per cent of the payment, while balance 55 per cent is expected to flow in this month, sources claimed.
The company is also scouting for a buyer for its serviced apartment project - Marriott Executive Apartments; and has also put on the block yet another hotel property in Gurgaon.
Serviced apartment project
The serviced apartments project is located in Gurgaon near the Unitech Cyber Park and the Unitech Greenwood City on 3.39-acre of land; the serviced apartments along with an office block has been designed by the Seattle-based Callison Inc and will be operated by Marriott as Marriott Executive Apartments.
Unitech’s current debt is pegged at Rs 7,800 crore and it has stated its intention to reduce the debt position to Rs 6,000 crore-6,500 crore by the end of the current financial year.
As part of the asset sale strategy, the company is also looking to sell plots (hospitals and schools) in its townships.
Saturday, May 9, 2009
Secura Investment launches Shariah-compliant real estate VC fund
Secura Investment Management India Pvt Ltd has launched its first real estate venture capital fund. The fund aims to ensure flow of investment in real estate and infrastructure development sector, thereby creating opportunities for organised investment in the field.
Secura India Real Estate Fund is the first venture capital fund in Kerala and is registered with SEBI. The company, headquartered in Kozhikode, makes its investments in accordance with SEBI guidelines. The fund operates in accordance with the Shariah laws and regulations, Mr M.A. Mehaboob, Managing Director, Secura, said.
Secura is jointly promoted by the hi-lite group, a major real estate player in the State, and professionals from the investment management sector.
The initial corpus of the fund will be Rs 50 crore and the company, which is to concentrate in the State real estate market, is targeting Rs 1,000 crore in the next 2-3 years, he said.
The primary objective is to carry out the activity of a venture capital fund and for raising resources to make available venture capital assistance to portfolio companies in the real estate and allied sectors. The fund is mid-term growth-oriented one and investment will be made in promising development projects, he said.
The investment collection, usage and distribution of the fund will be monitored by an independent trustee to ensure investment security.
The Mumbai-based IL&FS Trust Company Ltd, a subsidiary of Infrastructure Leasing and Financial Services, is the trustee of the fund.
The Shariah advisor of Secura is the Taqwa Advisory and Shariah Investment Solutions Pvt Ltd (TASIS). TASIS ensures that the conditions and the fund investments are in accordance with the Shariah regulations, Dr Shariq Nisar, Director, TASIS, said.
The working of the fund has to be reported to the SEBI and TASIS once in every three months and IL&FS will check the report every month as well. The annual auditing is carried out by Deloitte Haskins and Sells, he added.
Secura India Real Estate Fund is the first venture capital fund in Kerala and is registered with SEBI. The company, headquartered in Kozhikode, makes its investments in accordance with SEBI guidelines. The fund operates in accordance with the Shariah laws and regulations, Mr M.A. Mehaboob, Managing Director, Secura, said.
Secura is jointly promoted by the hi-lite group, a major real estate player in the State, and professionals from the investment management sector.
The initial corpus of the fund will be Rs 50 crore and the company, which is to concentrate in the State real estate market, is targeting Rs 1,000 crore in the next 2-3 years, he said.
The primary objective is to carry out the activity of a venture capital fund and for raising resources to make available venture capital assistance to portfolio companies in the real estate and allied sectors. The fund is mid-term growth-oriented one and investment will be made in promising development projects, he said.
The investment collection, usage and distribution of the fund will be monitored by an independent trustee to ensure investment security.
The Mumbai-based IL&FS Trust Company Ltd, a subsidiary of Infrastructure Leasing and Financial Services, is the trustee of the fund.
The Shariah advisor of Secura is the Taqwa Advisory and Shariah Investment Solutions Pvt Ltd (TASIS). TASIS ensures that the conditions and the fund investments are in accordance with the Shariah regulations, Dr Shariq Nisar, Director, TASIS, said.
The working of the fund has to be reported to the SEBI and TASIS once in every three months and IL&FS will check the report every month as well. The annual auditing is carried out by Deloitte Haskins and Sells, he added.
Thursday, May 7, 2009
Tata Housing launches low-cost project
Tata Housing Development Company has launched a low-cost housing project at Boisar, which is about 80 km from Mumbai.
The company said the model, offering apartments of 283 sq ft, 360 sq ft and 465 sq ft, in the price band of Rs 3.9 lakh-6.7 lakh, would be replicated across tier I and II cities.
Shubh Griha projectAnnouncing the launch of the project, Shubh Griha, of about 1,200 units, Mr. Brotin Banerjee, Managing Director and Chief Executive Officer, Tata Housing, said, “We observed that since most of the people in the low-income bracket live away from their families to earn a livelihood in the big cities, there is a large percentage of migrant population living in either rented or company provided accommodation. Our study shows that around 48 per cent in the lower segment are currently staying in rented accommodation. As a real estate company, we are sensitive to the need of providing this segment with their own home along with a community life. We believe in empowering them and giving them the pride of owning a house.”
Community conceptHe said though it was priced at an entry level, the ‘neighbourhood and community’ concept would change the conventional residential choice available for this segment of consumers today.
With a balanced mix of buildings and open spaces, the projects would be constructed under the guidance of Indian Green Building Council.
The low-cost housing units at Boisar would be built on about eight acres of a total of 63 acres, which will also have homes in the affordable segment, besides shopping, hospital, schools and other amenities, in subsequent phases.
Mr Banerjee said revenues from the sale of low cost units alone would be over Rs 80 crore, while declining to furnish the total project cost. The units would be delivered in two years.
Booking ProcessApplicants can purchase application form costing Rs 200 from select SBI branches across Mumbai. The bookings should be made with an initial booking amount of Rs. 10,000 at the bank branches.
The first list and the waiting list will be declared after scrutiny of applications. The allottees would be intimated by Tata Housing along with payment schedule.
Saturday, May 2, 2009
Builder offers compact homes in Bangalore
If this developer manages to set a trend, homes in Bangalore could well go the Mumbai way – small and compact. And in these times of recession, when a genuine buyer is not able to loosen his purse strings for that prized home, a product in the Rs 4 lakh to Rs 19 lakh category is indeed a blessing. At least that’s what this new real estate developer hopes it would be.
CSC Constructions has launched three projects in Bangalore – at Attibele near the Electronics City, Devanahalli, and Sarjapur Road – hoping to make “home buying within the reach of one and all.”
All the projects will have apartments in the studio, single bedroom, two bedroom and three bedroom categories. The target customers include senior citizens, ex-Servicemen, young couples, first-time buyers, government employees and all those who would want to move from rentals to EMIs without any difficulty.
Mr P.C. Sukanand, Managing Director, CSC Constructions, said, “We cater to all income levels. We would provide what other developers have been providing all these years, but at realistic prices. We have cut down on our margins instead of loading our profits on to the cost of construction.”
More projects
The company also plans to launch six more projects in the city in the next six weeks. “Depending on how we do here, we plan to go to Mumbai also,” he said.
The company would be investing about Rs 20-35 crore in each project towards development, with the landowner being the joint developer.
“We are not over-exposing ourselves to a single location, and we are going across multiple locations, thus offering customers a choice of location,” said Mr Rohit Chugani, Executive Director of the company. The company is also in talks with private equity players for funding for future projects.
“We hope to close in on few deals soon,” he added.
CSC Belle at Attibele will have 1,400 units ranging from 253 sq ft to 850 sq ft, with prices starting at Rs 4 lakh. Phase 1 of this project would see 860 units developed. CSC Boulevard at Devanahalli would have 480 units ranging from 290 sq ft to 1,000 sq ft, with prices starting at Rs 5 lakh. CSC Belva at Sarjapur Road would have 840 units in the 350-950 sq ft range, with prices starting at Rs 5 lakh.
“There will be no compromise on quality or cutting short of amenities in our projects,” said Mr Sukanand.
The residential complexes will come with amenities including swimming pool, kids’ play area, a Hospice centre, crèche, 24-hour security, supermarket/shops, gym, party hall, club house, etc.
CSC Constructions has launched three projects in Bangalore – at Attibele near the Electronics City, Devanahalli, and Sarjapur Road – hoping to make “home buying within the reach of one and all.”
All the projects will have apartments in the studio, single bedroom, two bedroom and three bedroom categories. The target customers include senior citizens, ex-Servicemen, young couples, first-time buyers, government employees and all those who would want to move from rentals to EMIs without any difficulty.
Mr P.C. Sukanand, Managing Director, CSC Constructions, said, “We cater to all income levels. We would provide what other developers have been providing all these years, but at realistic prices. We have cut down on our margins instead of loading our profits on to the cost of construction.”
More projects
The company also plans to launch six more projects in the city in the next six weeks. “Depending on how we do here, we plan to go to Mumbai also,” he said.
The company would be investing about Rs 20-35 crore in each project towards development, with the landowner being the joint developer.
“We are not over-exposing ourselves to a single location, and we are going across multiple locations, thus offering customers a choice of location,” said Mr Rohit Chugani, Executive Director of the company. The company is also in talks with private equity players for funding for future projects.
“We hope to close in on few deals soon,” he added.
CSC Belle at Attibele will have 1,400 units ranging from 253 sq ft to 850 sq ft, with prices starting at Rs 4 lakh. Phase 1 of this project would see 860 units developed. CSC Boulevard at Devanahalli would have 480 units ranging from 290 sq ft to 1,000 sq ft, with prices starting at Rs 5 lakh. CSC Belva at Sarjapur Road would have 840 units in the 350-950 sq ft range, with prices starting at Rs 5 lakh.
“There will be no compromise on quality or cutting short of amenities in our projects,” said Mr Sukanand.
The residential complexes will come with amenities including swimming pool, kids’ play area, a Hospice centre, crèche, 24-hour security, supermarket/shops, gym, party hall, club house, etc.
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