State of Real Estate -...

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Please refer to Disclosures and Disclaimers at the end of the Research Report. State of Real Estate For the month of September 2013 9 October 2013 PhillipCapital (India) Pvt. Ltd. The month that wasHaryana’s affordable housing plan has received an overwhelming response with 100 applications so far. Early indications are that the affordable housing supply in the near future in Gurgaon (54 applications) will increase. Sobha Developers and Prestige estates have reported strong new sales for Q2FY14 in Bangalore (Months of July and August would have contributed to the chunk as market sources indicate that September was sober) The key developments which took place in September – Maharashtra chief minister Prithviraj Chavan has assured developers of speedy approvals and sort out all matters that are crucial for our industry, including speedier environment clearances. Haryana's Town and Country Planning Department has received license applications from real estate developers for setting up affordable houses. Maximum number of applications for licenses has come for setting up houses in Gurgaon city at 54, followed by Sohna at 15, Faridabad at 10 while rest are for Jhajjar, Palwal, Rewari, Karnal and Nilokheri. Refer Page7 The total relocations across top eight cities in the first half (H1) of 2013 was at 5.46 mn sq ft which was 2.5 times higher compared to the same period last year and is onethird of the total leasing activity Among the 8 cities, Bangalore recorded the highest proportion of relocations with a substantial increase of more than three times when compared to the same period last year. Companies relocated from CBD/OffCBD locations such as MG Road, Millers Road, Vittal Mallya Road and Residency Road to peripheral regions such as the Outer Ring Road. Developers across the country are attracting buyers through several discount schemes/gifts with most common being gold coins, cashback on monthly rentals, customization, free parking and club facility, zero brokerage, upfront cash discounts among others. Bangalore commercial market seems to be poised for big ticket deals (two deals translating to Rs14 bn). Volvo closing in on 1 mn sq ft space at Outer Ring Road in Marathahalli and an undisclosed buyer/lessee is in discussions with RMZ corp for commercial space. Refer page18 Bangalore East supply pipeline strong The first half of 2013 witnessed a considerable uptrend in the number of unit launches with organized developers launching large affordable projects in peripheral areas such as Budigere Cross in the east, Anekal RoadAttibele in the south, Tumkur Road in the north and Mysore Road in the western part of the city. Refer page14 Commercial space continue to drag behind with office space leasing drops 20% qoq in JulySeptember 2013Bangalore saw the highest take up of space2.9 mn sq ft‐‐ continued to accounting for 42% of the total demand for space across the top seven cities. Mumbai Broker SpeakSituation remains grim as transactions have evaporated. Seems to suggest that distress supply in the market is increasing and supply from corporate bulk investments is hitting the market at lower prices (even lower than the cost of acquisition in extended suburbs such as Taloja). Takeaways from Nitesh Estates Management meet (including impact of subvention schemes on prices over last 18 months) Refer Page21 Abhishek Ranganathan (+ 9122 6667 9952) [email protected] Neha Garg (+ 9122 6667 9996) [email protected]

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  • PleaserefertoDisclosuresandDisclaimersattheendoftheResearchReport.

    StateofRealEstateForthemonthofSeptember2013

    9October2013PhillipCapital (India) Pvt. Ltd.

    The month that was Haryanas affordable housing plan has received anoverwhelming responsewith100 applications so far.Early indications are thattheaffordablehousingsupplyinthenearfutureinGurgaon(54applications)willincrease.SobhaDevelopersandPrestigeestateshavereportedstrongnewsalesforQ2FY14 inBangalore(MonthsofJulyandAugustwouldhavecontributedtothechunkasmarketsourcesindicatethatSeptemberwassober)ThekeydevelopmentswhichtookplaceinSeptember Maharashtra chief minister Prithviraj Chavan has assured developers of

    speedyapprovalsand sortoutallmatters thatarecrucial forour industry,includingspeedierenvironmentclearances.

    Haryana's Town and Country Planning Department has received licenseapplications from real estate developers for setting up affordable houses.MaximumnumberofapplicationsforlicenseshascomeforsettinguphousesinGurgaoncityat54,followedbySohnaat15,Faridabadat10whilerestareforJhajjar,Palwal,Rewari,KarnalandNilokheri.ReferPage7

    Thetotalrelocationsacrosstopeightcitiesinthefirsthalf(H1)of2013wasat5.46mn sq ftwhichwas2.5 timeshighercompared to the sameperiodlast year and is onethird of the total leasing activity Among the 8 cities,Bangalorerecorded thehighestproportionofrelocationswithasubstantialincreaseofmore than three timeswhencompared to thesameperiod lastyear. Companies relocated from CBD/OffCBD locations such asMG Road,MillersRoad,VittalMallyaRoad andResidencyRoad toperipheral regionssuchastheOuterRingRoad.

    Developersacrossthecountryareattractingbuyersthroughseveraldiscountschemes/giftswithmost common being gold coins, cashback onmonthlyrentals,customization,freeparkingandclubfacility,zerobrokerage,upfrontcashdiscountsamongothers.

    Bangalore commercialmarket seems tobepoised forbig ticketdeals (twodealstranslatingtoRs14bn).Volvoclosing inon1mnsq ftspaceatOuterRingRoad inMarathahalliandanundisclosedbuyer/lessee is indiscussionswithRMZcorpforcommercialspace.Referpage18

    Bangalore East supply pipeline strong The first half of 2013witnessed aconsiderable uptrend in the number of unit launches with organizeddevelopers launching large affordable projects in peripheral areas such asBudigereCross intheeast,AnekalRoadAttibele inthesouth,TumkurRoadinthenorthandMysoreRoadinthewesternpartofthecity.Referpage14

    Commercial space continue todragbehindwithoffice space leasingdrops20% qoq in JulySeptember 2013 Bangalore saw the highest take up ofspace2.9mnsqftcontinuedtoaccountingfor42%ofthetotaldemandforspaceacrossthetopsevencities.

    Mumbai Broker Speak Situation remains grim as transactions haveevaporated.Seemstosuggestthatdistresssupplyinthemarketisincreasingand supply from corporatebulk investments ishitting themarketat lowerprices (even lowerthanthecostofacquisition inextendedsuburbssuchasTaloja).

    Takeaways from Nitesh Estates Management meet (including impact ofsubvention schemes on prices over last 18 months) Refer Page 21

    AbhishekRanganathan(+912266679952)[email protected](+912266679996)[email protected]

  • 9October2013/INDIAEQUITYRESEARCH/REALESTATE AUGUST2013

    Mumbai PrithvirajChavanbuildsbridgeswithbuilders'lobby,announcessops:Maharashtra

    chiefminister Prithviraj Chavan has offered a number of sops and assured themspeedy approvals and faster clearances from the government for real estateprojects. The chiefminister has assured us of speedy approvals and sort out allmattersthatarecrucialforourindustry,includingspeedierenvironmentclearances.Themeetingwasattendedbymunicipalcommissionersfromnumberofcivicbodiesin theMumbaiMetropolitan Region and senior urban development departmentofficials.

    Sellinga17acreprojectinSouthMumbai,LodhastyleAfterbuyinga17acreplotfromDLF, thecountrys largestdeveloper, forRs27bn inAugust2012,LodhahasdoneeverythingtowoocustomerstotheprojectinaratherslowpropertymarketinMumbai.Inall,thedeveloperisbuildingsixtowersof75storeyseachand12villasaroundasixacreparkon the70 feethighelevatedplot.The towerhad twobedroomapartmentsstartingat1,305sqftwithapriceofRs24,471orRs33mnandthreeBHKsstartingat1,539sqftwithapriceofRs34mn.The latestattraction intheprojectwasLodhas tieupwithUSbased realty tycoonDonaldTrump,knownforhighrisebuildings inManhattan, for an 800foot tall Trump Tower inside thePark.

    Mumbaihigh court allows redevelopmentofbuildings in ShivajiPark area In amajor interimreliefforresidentsofbuildings intheShivajiParkareathatobtainedcommencementcertificatesfromtheBMCfortheredevelopmentoftheirpropertiesbefore July 31, 2012, the Bombay high court has allowed the redevelopment ofthese properties despite the structures coming within the proposed heritageprecinct. Judges said that those buildings which have received commencementcertificatespriortoJuly31,2012,couldgoaheadwithredevelopmentwork.Thosebuildingswhere redevelopment plans have been sanctioned and they have beenlegallydemolishedbetween July31,2013,andAugust13,2013, shouldapproachtheBMCforfurtherpermissions.

    SeafacingMumbaiduplexgoesatRs135,000/sqftInthecostliestapartmentdealinthecountry,aseafacingduplexinaMalabarHillbuildingwasrecentlysoldforRs570mnorroughlyRs135,000asqft.TheduplexinthetonyDarshanApartmentsonMount Pleasant Road was sold last month to the Bulchandanis, a prominentbusiness familywith interests in software, aluminium and real estate. They ownthreeotherduplexesinthesamecomplex.

    Mumbai sees18,000 residentialunits launched in firsthalf2013,up30%Weakresidential property market scenario in Mumbai has not deterred real estatedevelopersfrom launchingnewprojects inthefinancialcapitalofthecountry.Thecityhaswitnessedlaunchesofaround18,000unitsinthefirsthalfoftheyearuntilJune, representing an increase of 30% over last year, said a quarterly report byCushmanandWakefield.Ofthetotalnewlaunches,amajorityof30%werefocusedin thewestern suburbs of Andheri, Bandra,Malad and Goregaon. NaviMumbaicontributed24%oftheoveralllauncheswiththesecondphaseofalargetownshipprojectlaunchedinPanvel.ThecentralsuburbanstretchfromKurlatoMulundalsocontributed20%of thenew launcheswith two largeprojects launched inMulundalongwithprojectsinChembur,KanjurmargandGhatkopar.

    SoBos highend luxury homes find few takers Highend properties in SouthMumbaihave fewer takers in a gloomy economy.Whileproperty appreciation inSobo, as the area is fondly called,hasdropped to10% from30% two years ago,rentalyieldshavefallenbymorethanhalf.Saleofnewpropertyhasdropped30%inthe past eight to 12months,with fewer investors and enduserswilling to buyexpensivehomes.Forevery100homesavailable forsale inaquarter,onlysixaregettingsold.

    SRA issues showcause to 300 builders To pull up builderswhose projects havebeenpendingforyears,theSlumRehabilitationAuthority(SRA)hassentshowcausenoticestoover300builderswhohavefailedtobeginhousingprojectsforthepast

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    fiveyears.TheSRAhas identifiedover400 suchprojects.Asmanyas164noticeshavebeensenttobuildersundertakingSRAprojects intheeasternsuburbs. Inthewestern suburbs, 160 builders had received notices so far. The SRA has alsosuggested crucial changes in the scheme to ensure successful completion of thehousing schemes. Officials said the agency had suggested relaxation of CoastalRegulationZone II(CRZ)normstoenableredevelopment inover290slumpocketsaffectedbythenorms.

    Realtorshopetoclear inventoryon freebies, festivalsales:Realtydevelopersarehopeful of clearing a large portion of their inventory pileup during this festiveseason by luring in buyerswith freebies and discounts, even as they sit tight ondeclared prices. Developers are likely to attract buyers through several discountschemes/giftswithmost commonbeinggold coins, cashbackonmonthly rentals,customization,freeparkingandclubfacility,zerobrokerage,upfrontcashdiscountsamongothers. inMumbairegion,whichhasbeenwitnessingamajordrop insalesforquitesome time,developers likeLodha,MantriRealtyandRomellGrouphavealreadyannouncedvariousdiscounts.WhileLodhahasofferedRs2lakhdiscountonspotbookingforits'LodhaElite'projectinDombivli,MantriRealtywasoffering100gmgoldonbookingstillSeptember18foritsupcomingSereneprojectatGoregaon.

    Relocations in Mumbai have increased substantially in the firsthalf of 2013compared to the same period during 2012with companies relocating from CBDlocationssuchasNarimanPoint,BallardEstate,andChurchgateetc.tolargerofficespacesinlocationssuchasBKCandAndherieastatrentalslowerbyapproximately5565per cent.With IT/ITeS companiesexpanding toperipheral locations,FMCG,Pharma andMedia companies opted for relocations to larger space at attractiverentals inthesuburban locationsofMumbaisuchasAndheriEast, JogeshwariandPowai

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    ResidentialProjectsRecentandNewLaunchesinMumbai/PuneDeveloper Nameofthe

    ProjectCity Location Subvention

    schemeResidential/Commercial

    Size(InSqft) Price/unit Possession

    Rustomjee Meridian KandivaliWest

    CharkopVillage,OffM.G.Road

    Residential 12BHK Rs9mnonwards

    Kalpataru Radiance GoregaonWest

    NexttoPrabodhanKridaBhavan

    Residential 234BHK Rs1845mn

    HiranandaniEstate Cardinal ThaneWest OffGhodbunderRoad

    Residential 2.53BHK Rs13750/sqft

    VijayGroup VijayGalaxy ThaneWest WaghbilNaka,G.B.Road

    Residential 12BHK Rs7.9mnonwards

    IndiaBulls FirstResidences Panvel Opp.HondaWarehouse

    20/80 Residential PenthousesandDuplexes

    Rs12mnonwards

    DamjiShamjiShahGroup

    MahavirMillennium ThaneWest OffPokhranRoad

    25/75 Residential 23BHK Rs6.512mn

    DamjiShamjiShahGroup

    MahavirKalpavruksha

    ThaneWest OvalaVillage 20/80 Residential 12BHK Rs4.639mn

    IndiaBulls GolfCity Savroli KhalapurTollPlaza

    Residential Apartments Rs6000/sqft

    Rustomjee Urbania ThaneWest NearMajiwadaJunction

    Y Residential 2BHK Rs9870Sqft

    Rustomjee Azziano ThaneWest ThaneWest Residential 23BHK Rs9750Sqft

    Kalpatru Aura Ghatkopar(w) LBSMarg Residential 2and2.5BHK Rs1215mn

    EktaWorld EktaTripolis GoregaonWest

    NearMegaMall Residential 4BHK Rs16.623.1mn

    Lodha LodhaSplendora ThaneWest Bhayandarpada,GhodbunderRoad

    Residential 2BHK Rs8.9mn

    DamjiShamjishahgroup

    MahavirUniversePhoenix

    Bhandup(West)

    LBSMarg Residential 22.534BHK Rs13.325.7mn

    MarathonGroup MarathoneNexzone

    Panvel NationalHighway4B

    Y Residential 2BHK Rs4.8mnonwards

    Acme AcmeAvenue KandivaliWest

    Charkop Residential 1.523BHK Rs7.3mnonwards

    MantriRealty Serene GoregaonEast OffFilmCityRoad

    Residential 123BHK Rs8.5mnonwards

    Nearingpossession

    RuparelRealty Ariana Parel Parel Residential 23BHK Rs16000/sqft

    RuparelRealty Iris MatungaWest

    MatungaWest Residential 123BHK Rs20000/sqft

    RuparelRealty Orion SwastikPark Chembur Residential 123BHK Rs11500/sqft

    RuparelRealty SeaPalace PalmBeachRoad

    NerulWest Residential 34BHK Rs35.237.1mn

    Mayfair Hillcrest VikhroliWest NearLbsMarg Y Residential 2BHK655sqft Rs15.6mn. 2015

    AjmeraGroup ILand WadalaEast NexttoIMax,BhaktiPark

    Residential 4BHK Rs17100/sqft

    Rustomjee Oriana BandraEast BehindMIGClub,NDharmadhikarRoad

    Residential 34BHK Rs90mnonwards

    NaharGroup NaharAmritShakti Chandivali OffSakiViharRoad

    Y20/80 Residential 23BHK 3BHKRs20.7mn/Luxury2BHKRs20.6/3BHKRs30.6mn

    HiranandaniEstate TheWalk Thanewest OffGhodbunderRoad

    Residential Smallsizeapartments

    Rs8.89.1mn

    Lodha NewCuffParade Mumbai NearIMAXDome

    Residential 23BHK Rs28.5mnonwards

    SuntechRealty SigniaOceans NaviMumbai Airoli Residential 34BHK Rs9000/sqft

    SuntechRealty SigniaOrion NaviMumbai Airoli Residential 23BHK Rs10000/sqft LaunchingSoon

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    Developer NameoftheProject

    City Location Subventionscheme

    Residential/Commercial

    Size(InSqft) Price/unit Possession

    HiranandaniEstate HiranandaniHeritage

    KandivaliWest

    S.V.Road Residential 135BHK Rs17000/sqft

    Mayfair MayfairGreens KandivaliWest

    S.V.Road Residential 234BHK Rs20000/sqft Jun15

    Gundecha Altura KanjurmargWest

    LBSRoad Residential 23BHK Rs17500/sqft Readypossession

    Tridhaatu Antariksh Mumbai Chembur Residential 3BHK Rs36mnonwards

    ConstructioninFullSwing

    Source:PhillipCapitalIndiaResearch

    NCR EastDelhi colony to get freehold rightsAsmany as 144 families displaced after

    partition,whohadbeen campaigning for full rights toplots given to them in the1950s, havewon their long and arduous battle.DelhiDevelopmentAuthority onMonday announced that familieswhowere givenplots after1950 in eastDelhi'sJheelKhuranjaareawillnowhavefreeholdrights.

    Nationalizedbanks return to fundNoidaExtensionprojects TheGreaterNoidaAuthorityisupbeatthattheGreaterNoida(West)region,formerlyNoidaExtension,isslowlybeingremovedfromtheblacklistofbanksandtheyhavestartedshowinginterestinbackingbuyerswhowanttoinvestinprojectsintheregion.Afterthelandrow in 2011, banks had stopped financing such projects due to fears of landacquisitionbeingquashedbythecourts.

    NCR seesmaximum delay in realty In terms of the average delay in deliveringresidentialprojectsacross India;more than25%of thecommitted supplyhasnotbeenabletohitthemarketasperschedule.InGurgaon,onlyonethirdofthetotalcommittedsupplyfor2013hasbeendeliveredsofar.ThesituationhasbeenevenmorealarminginotherNCRregionssuchasNoida,whereonlyaboutonefifthoftheresidentialsupplycommitted fordelivery in2013hasbeendeliveredso far. IntheWest,PuneandMumbaihaveshownamuchbetterperformanceintermsofprojectcompletionsthesecitiescoulddelivermorethan40%ofthecommittedsupplyof2013asperscheduleddelivery.

    Rising defaults by shortterm realty investors add to developerswoesA largenumberofsuchinvestorswhogenerallybuymultiplepropertiesandselltheminsixtoeightmonthsforquickgainsareapproachingdevelopersforrefunds,andinsomecaseseven taking them tocourt,according to some realestateconsultants.Shortterm realestate investors,a sourceofquick funds forhousingprojects,areincreasinglydefaultingonpaymenttodevelopers,aseconomicslowdownandrisingcostof living keeps regularhomebuyerson the fringes,narrowing exit routes forspeculators.

    New home launches drop by 8% in DelhiNCR DelhiNCR property marketwitnessed8percentfallinthenumberofresidentialunitslaunchedduringthefirsthalf of 2013 amid slowdown in demand and economy, according to consultantCushman&Wakefield.Thedeclineinnewlauncheswassteeperinthehighendandluxury segment. The NCR residential market registered degrowth in the totalnumberofunitslaunchedinthefirsthalfoftheyearascomparedthesametimelastyear.Thetotalnumberofunitslaunchedin1H2013isestimatedtobe20,700whichislowerby8percentover1H2012.Thetotalnumberofunitslaunchedinthehighendsegmentdecreasedbyabout70percentduringH12013comparedtothesameperiodlastyear.Therewerenonewlaunchesintheluxurysegmentduringthefirsthalf of 2013 due to increased availability of units in themarket that are nearingcompletioninthissegment.

    LandpoolingpolicyanintegrateddevelopmentaleffortAccordingtothepolicy,theprivatedeveloperswillnowbedealingdirectlywiththefarmerstoacquireland.DDAwill take the land from the developers and develop the necessary support

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    infrastructure. In return, thedeveloperswouldbegivenachunkof thedevelopedland, to develop further. The policy ensures more planned and organizeddevelopment in largeareasof land,whilstalsoprovidingDDAwith thenecessarylandwhichtheycanutilizetodevelopaffordablehousing.

    SouthDelhispropertypricesdownby2035%,DefenceColonyandVasantViharworsthitbyslowdownpricesofhomesinupscaleSouthDelhihavedroppedby20per cent35 per cent over the last one year,with developers and cashstrappedinvestorsofferingbigdiscountstodisposeofftheirassetsinaslowingeconomy.Tillaboutsixmonthsago,discountsonnewhomesintheareawerebeingofferingonlybydevelopers facingoversupply.Butwith the economic situationworsening, thiscategory of sellers has expanded to include cashstrapped investors andbusinessmenwhoarekeentosellthehighendapartmentstheyhadpickedupsomeyears ago.Whilepriceshave fallen across residential colonies in SouthDelhi, thedrop is themost inDefenceColony andVasantVihar. For instance, a2,000sq ftapartment inDefenceColony,available forRs95100mnayearago,cannowbenegotiated for anything between Rs 65mn and Rs 80mn, according to dealers.Similarly,thepriceofa2,300sqftapartmentinVasantViharhasdroppedtoRs100120mnfromRs120140mnlastyear.

    In the National Capital Region, office occupiers opted to relocate from primelocationsinDelhitoGurgaonaswellaswithinGurgaonwiththerentaldifferentialsintherangeof2030percenttranslatingtocostadvantagetotheoccupiers.

    Withdrawal of Zoning Plans of Countrywide Promoters (subsidiary of BPTP) inGurgaon The town planning authority ofHaryana haswithdrawn of approval ofreviseddemarcationcumzoningplansof licenseofCountrywidePromoterPvt.LtdforSector102/102A,Gurgaon (108acresprojectknownasAmstoria)projectas ithasdefaultedonduesofRs1.74bntowardstwolicenses.Theauthorityhasfurtherbarredalldevelopmentworks,sale,acceptanceofbookingsforthesaidproject.

    86 realtors inclusing Emaar MGF, DLF show interest for Haryana affordablehousing project:Haryana's Town and Country PlanningDepartment has receivedlicence applications from real estatedevelopers for setting up affordablehouses.Maximum number of applications for licenses has come for setting up houses inGurgaon city at 54, followed by Sohna at 15, Faridabad at 10while rest are forJhajjar, Palwal, Rewari, Karnal and Nilokheri. Among companies which havesubmittedlicenseapplications,prominentrealestategroupsareDLFLtd(3projectsinGurgaontotalingto33acres)andEmaarMGF(1project58acres),EsselHousingat Gurgaon, SRS Hightech projects at Faridabad, CHD Developers at Karnal andSohna at Raheja Developers. Interestingly Countrywide Promoters Pvt Ltd(subsidiaryofBPTP)hasbid forprojects inFaridabad (29acres)andGurgaon (7acres) despite defaulting on dues and having its licensewithdrawn inGurgaonsector 102.Under this policy, the state government envisaged tomake available125,000affordabledwellingunitshavingcarpetareaofabout500sqfteachintheurbancentresofHaryana,whichareconstructedthroughthecapitalinvestmentofprivate sectorwithinaperiodofnext fiveyears.Themaximumallotment rate fortheapartmentunitsapprovedundersuchprojectshasbeenkeptatRs4,000persqftof carpetarea in thedevelopmentplansofGurgaon,Fairdabad,PanchkulaandPinjoreKalka,Rs3,600persqftinthedevelopmentplansofotherhighandmediumpotentialtownsandRs3,000persqftintheremaininglowpotentialtowns.

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    ApplicationsforHaryanaAffordableHousingreceivedtill30Sept2013DeveloperName Area(acre) Dev.Plan SectorNo

    FARIDABAD ConscientInfrastructurePvt.Ltd. 7.39 Faridabad 78CountrywidePromotersPvt.Ltd. 10 Faridabad 82S3BuildwellPvt.Ltd. 5.25 Faridabad 82CountrywidePromotersPvt.Ltd. 9.53 Faridabad 84SRSHitechProjectsLtd. 5.65 Faridabad 84CountrywidePromotersPvt.Ltd. 9.53 Faridabad 86AuricHomesPvt.Ltd. 8.91 Faridabad 86SudarshanBuildtechPvt.Ltd. 6.44 Faridabad 88TarangEntertainmentPvt.Ltd. 5.01 Faridabad 88SRSHitechProjectsLtd. 6.33 Faridabad 89Total 74.04 Faridabad

    GURGAON AVLInfrastructurePvt.Ltd. 9.07 Gurgaon 36AExcelBuildmartPvt.Ltd. 10.28 Gurgaon 36ARenukaTradersPvt.Ltd. 7.53 Gurgaon 37CRMGDevelopersPvt.Ltd. 5.43 Gurgaon 37CSunraysHeightsPvt.Ltd. 5.9 Gurgaon 63MunglamMultiplexPvt.Ltd. 10.17 Gurgaon 65KrrishLandscaperPvt.Ltd. 11.81 Gurgaon 67PremiumInfratechPvt.Ltd. 5.08 Gurgaon 69,70InfinitiveAnalyticsPvt.Ltd. 5.39 Gurgaon 70DLFLtd. 10.26 Gurgaon 70ADLFLtd. 11.24 Gurgaon 70APremiumInfratechPvt.Ltd. 5.08 Gurgaon 69,70SarvpriyaSecuritiesPvt.Ltd. 6 Gurgaon 71NexusInfraconPvt.Ltd. 12.29 Gurgaon 76RevitalRealityPvt.Ltd. 9.82 Gurgaon 78RevitalRealityPvt.Ltd. 8.47 Gurgaon 79BMindaIndustriesLtd. 16.86 Gurgaon 81ManiraDevelopersPvt.Ltd. 5.47 Gurgaon 81PivotalInfrastructurePvt.Ltd. 5.18 Gurgaon 84EmaarMGFLandLtd. 9.47 Gurgaon 85PyramidInfratechPvt.Ltd. 5.29 Gurgaon 86EmaarMGFLandLtd. 9.99 Gurgaon 86EmaarMGFLandLtd. 5.53 Gurgaon 89MaxworthInfrastructurePvt.Ltd. 5.52 Gurgaon 89AsterInfrahomePvt.Ltd. 5.01 Gurgaon 90AsterInfrahomePvt.Ltd. 5.01 Gurgaon 90LalSingh&Others 5.35 Gurgaon 90,93MahendraPromotersPvt.Ltd. 10 Gurgaon 91,92MahendraPromotersPvt.Ltd. 10 Gurgaon 91,92LalSingh&Others 5.35 Gurgaon 90,93DLFLtd. 11.73 Gurgaon 93SignatureBuildersPvt.Ltd. 6.2 Gurgaon 93HorizonRealtechPvt.Ltd. 7.27 Gurgaon 95RamsonsOrganicsLtd. 7.27 Gurgaon 95ChiragBuildtechPvt.Ltd. 5.04 Gurgaon 95RosemaryBuildconPvt.Ltd. 6.61 Gurgaon 95BPivotalInfrastructurePvt.Ltd. 7.02 Gurgaon 99PareenaInfrastructurePvt.Ltd. 5.84 Gurgaon 99APrimeInfradevelopersPvt.Ltd. 9.17 Gurgaon 99ASuncityProjectsPvt.Ltd. 5.81 Gurgaon 102NaniResortsFloriculturePvt.Ltd. 9.37 Gurgaon 102CountrywidePromotersPvt.Ltd. 6.82 Gurgaon 102EsselHousingProjectsPvt.Ltd. 5.25 Gurgaon 102EmaarMGFLandLtd. 7.38 Gurgaon 102EmaarMGFLandLtd. 6.79 Gurgaon 103HCBSDevelopmentsLtd. 7.68 Gurgaon 103JMKHoldingsPvt.Ltd. 9 Gurgaon 103

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    DeveloperName Area(acre) Dev.Plan SectionNo.

    HCBSDevelopmentsLtd. 5 Gurgaon 104PerfectBuildwellPvt.Ltd. 6.03 Gurgaon 104SignatureBuildersPvt.Ltd. 6.13 Gurgaon 107EmaarMGFLandLtd. 7.55 Gurgaon 107AgranteRealtyLtd. 7.78 Gurgaon 108ShyamKripaInfrastructurePvt.Ltd. 6.78 Gurgaon 108EmaarMGFLandLtd. 5.86 Gurgaon 111LotusRealtechPvt.Ltd. 5.1 Gurgaon 111EmaarMGFLandLtd. 5.64 Gurgaon 112SurviIndiaInfrastructurePvt.Ltd. 5.17 Gurgaon 113Total 423.14 Gurgaon

    JHAJJAR BhishamInfrastructurePvt.Ltd. 7.39 Jhajjar 3BSumanVillas 5.21 Jhajjar 21GNEXRealtechPvt.Ltd. 5.73 Jhajjar 36Total 18.33 Jhajjar

    KARNAL TapasyaFarmsPvt.Ltd. 10.01 Karnal 29AegisValueHomesLtd. 6.22 Karnal 32ACHDDevelopersLtd. 10 Karnal 45VatikaColonizerPvt.Ltd. 8.91 Karnal 36Total 35.14 Karnal

    NILOKHERI RasDevelopmentsPvt.Ltd. 7.01 Nilokheri 16

    PALWAL SRSRealEstateLtd. 6.46 Palwal 6SRSRealEstateLtd. 10.65 Palwal 7ValmaxConstructionsPvt.Ltd. 8.05 Palwal 10Total 25.16 Palwal

    PANCHKULA NanoColonisersPvt.Ltd. 14.31 Panchkula 14JG&RGDevelopersPvt.Ltd. 9.24 Panchkula Total 48.71 Panchkula

    REWARI ShivaMegaProjectsPvt.Ltd. 5.44 Rewari 7BMGuptaDevelopersPvt.Ltd. 5.77 Rewari 26VictoryBuildEstatesPvt.Ltd. 5.03 Rewari 27ChiragBuildtechPvt.Ltd. 8.74 Rewari 30Total 24.98 Rewari

    SOHNA RandhawaConstructionPvt.Ltd. 6.86 Sohna 2,35GLSInfratechPvt.Ltd. 10.38 Sohna 4MVNInfrastructurePvt.Ltd. 6.5 Sohna 5AreteIndiaProjectsPvt.Ltd. 6.01 Sohna 6MVBuildconPvt.Ltd. 7.69 Sohna 7VKMotorsPvt.Ltd. 5.41 Sohna 11RahejaDevelopersPvt.Ltd. 5.1 Sohna 14EnkayBuildwellPvt.Ltd. 5.09 Sohna 14MahendraPromotersPvt.Ltd. 5.83 Sohna 29,32AARHousingPvt.Ltd. 9.42 Sohna 31MahendraPromotersPvt.Ltd. 5.83 Sohna 29,32FaithBuildtechPvt.Ltd. 5.54 Sohna 32BreezeBuildersandDevelopersPvt.Ltd. 9.46 Sohna 33TulsianiConstructionsandDevelopersLtd. 7.86 Sohna 35RandhawaConstructionPvt.Ltd. 6.86 Sohna 2,35SternalBuildconPvt.Ltd. 11.93 Sohna 36PioneerUrbanLand&InfrastructurePvt.Ltd. 9.97 Sohna 36Total 36.62 Sohna

    SONIPAT MaxheightsPromotersPvt.Ltd. 5 Sonipat 61

    Source:DepartmentofHouse&CountryPlanningHaryana

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  • 9October2013/INDIAEQUITYRESEARCH/REALESTATE AUGUST2013

    ResidentialProjectsRecentandNewLaunchesinDelhiDeveloper Nameofthe

    ProjectCity Location Subvention

    schemeResidential/Commercial

    Size(InSqft) Price/unit Possession

    MMRShahGroup 52ndAvenue CentralNoida Sector52 Commerial BusinessSuites,RetailHigh

    Street,BrandedService

    Apartments

    EldecoInfrastructure&PropertiesLtd.

    Mysticgreens GreaterNoida Omicron Residential 23BHK 44.10lacsonwards

    EldecoInfrastructure&PropertiesLtd.

    Aamantran Noida Sector119 Residential 34BHK

    EldecoInfrastructure&PropertiesLtd.

    Olympia Noida Sector93A Residential 3BHK

    EldecoInfrastructure&PropertiesLtd.

    TheStudio Noida Sector93A Residential 1BHK

    EldecoInfrastructure&PropertiesLtd.

    Inspire Noida Sector119 Residential 23BHK

    EldecoInfrastructure&PropertiesLtd.

    Hillside Neemrana JapaneseZone Residential 2BHK+studioapartments

    Bestech GrandSpa Gurgaon Sector81 Residential

    Bestech Sanskruti Gurgaon Sector92 Residential 34BHK

    IITLNIMBUSGroup TheGoldenPalms YamunaExpressway

    Sector22A Residential 234BHK

    SatyaGroup Elementone Gurgaon sector47&49 Commercial 350Sqftonwardshighstreetretail,serviceaprtment650sqftonwrads

    launched

    ParasBuildtech ParasSquare Gurgaon Sector63A Commercial/Residential

    HighStreetRetail/Service

    Apartments

    AirwilBusinessParkPvt.Ltd,

    Intellicity Gr.NoidaWestTechZoneIV Commercial

    OasisRealtechPvt.Ltd.

    OasisGrandStand Noida Sector2 Residential 123BHK(695845)

    Rs1.528mn(Rs2199/sqft)

    Paramount Floraville Noida GH6sector137 20/80 Residential 23BHK

    Paramount Emotions GH05A,sector1

    GreaterNoidaWest

    15/22/63 Residential 23BHK Rs2.950mn

    ElixirBuildconPvt.Ltd.

    ElixirWindz Noida Sector150 Residential 234BHK

    ArihantBuildConPvt.Ltd.

    ArihantAmbience NH24 GH6,CrossingsRepublik

    Residential 34BHK

    SikkaHouse TheDowntown ExpresswayNoida

    Sector98 5*hotelandservice

    apartments

    serviceapartments599sqftto5000sqft.Highendretailspace350sqftto150000sqft,officespace700sqftto70000sqft.

    ServiceapartmentRs8.5mnonwardsHighendretailspaceRs6mnonwards;OfficespaceRs5.5mn

    WaveInfratech Edenia Noida Sector32&25A Commercial Multiusestudios Rs3.5mnonwards

    TulipInfratechPvt.Ltd.

    TulipOrange Gurgaon Sec6970,SohnaRoad

    Residential 23BHK(11371437sqft)

    Rs7.5mnonwards

    Readytomove

    Adityabuilders CelebrityHomes Noida Sector76 Residential 234BHK Rs5.5mnonwards

    NearingPossession

    Adityabuilders UrbanCasa Noida Sector78 Residential 234BHK Rs4.5mnonwards

    NearingPossession

    LaureateBuidwellPvt.Ltd.

    ParxLaureate Noida Sector108 Residential 34BHK ConstructioninFullSwing

    ImperiaStructuresLtd.

    OnlyMax GreaterNoida NH24 Commercial BSPRs5250/sqft

    9of23

  • 9October2013/INDIAEQUITYRESEARCH/REALESTATE AUGUST2013

    Developer NameoftheProject

    City Location Subventionscheme

    Residential/Commercial

    Size(InSqft) Price/unit Possession

    AnsalHousing&ConstructionLtd.

    AnsalHeights86 Gurgaon NH8andDwarkaExpressway

    Residential 2345BHK

    JMHousing JMFlorence GreaterNoida(West)

    DVGH09C,SectorTechZone4

    Residential 23BHK

    JNCconstructionspvt.Ltd.

    Greenvasundharawoods

    sector3vasundhra

    Ghaziabad Residential 23BHK Rs5.925mnonwards

    Unitech Exquisite SohnaRoad Gurgaon Residential 3BHK Rs16.50mnonwards

    Constructioninfullswing

    SuperTechLimited Capetown Noida sector74 100acres50%inpossession

    Residentialcomplex

    24BHK 4560

    SuperTechLimited Albaria GreaterNoida(West)

    Noidaextension NOEMIfor24months

    Residentialcomplex

    34BHK(1590159617251906

    2364)

    Rs5.6mnonwards

    SuperTechLimited GolfVillage GreaterNoida Yamunaexpressway

    Residentialcomplex

    123BHK 2425

    SuperTechLimited Golfvillage GreaterNoida YamunaExpressway

    123BHK 19.14lacs

    SuperTechLimited Grandcircuit GreaterNoida YamunaExpressway

    123BHK 17.5lacs

    SuperTechLimited Fablecastle GreaterNoida YamunaExpressway

    234BHK 33.5lacs

    SuperTechLimited Superliving Gurgaon Araville,sector79

    pay35%onlyrestpossession

    23BHK constructioninfullswing

    SuperTechLimited Supernova Noida Sector94 40/60 Residential 234BHK Rs15.0mnonwards

    SuperTechLimited ORB Noida Sector74 40/60 Residential 34BHK Rs12.5mnonwards

    SuperTechLimited NorthEye Noida Sector74 40/60 Residential 1234BHK Rs4.3mnonwards

    SuperTechLimited Ecociti Noida Sector137 40/60 Residential 234BHK Rs4.9mnonwards

    SuperTechLimited Ecosuites Noida Sector137 40/60 Residential StudioApartments

    Rs2.4mnonwards

    SuperTechLimited EcoVillage GreaterNoida(West)

    GreaterNoida(West)

    40/60 Residential 1234BHK Rs2.4mnonwards

    SuperTechLimited GolfSuites GreaterNoida YamunaExpressway

    40/60 Residential StudioApartments

    Rs1.6mnonwards

    SuperTechLimited UpCountry GreaterNoida YamunaExpressway

    40/60 Residential StudioApartments

    Rs1.6mnonwards

    SuperTechLimited HolidayVillage GreaterNoida YamunaExpressway

    40/60 Residential LuxuryVillas Rs6.5mnonwards

    MahagunGroup Mirabella Noida Sector79 Residential 34BHK NowLaunched

    WaveInfratech Edenia Noida Sector32&25A Commercial Multiusestudios Rs3.5mnonwards

    Ansalhousing&constructionLtd.

    AnsalTownWalk Gurgaon Sector104 Commercial Highstreetretailcumcorporate

    spaces

    startingRs2.5mnonly

    Rudra RudraPalaceHeights GreaterNoida(West)

    GH02B,Sec.1 Residential

    AasthaInfracityLimited

    AasthaGreens GreaterNoida(West)

    Sector4 Residential 23BHK Rs2684/Sqft

    PareenaInfrastructure

    CobanResidences Gurgaon Sector99A Residential 234BHK

    RadiconInfrastructure&HousingPvt.Ltd.

    VedantamEmporio GreaterNoida NoidaExtension 50/50 Rs3.8mnonwards

    SatyaGroup Elementone Gurgaon sector47&49 Commercial 350Sqftonwardshighstreetretail,serviceaprtment650sqftonwrads

    launched

    AceGroupIndia AceGolfshire Noida Sector150 Residential Launchingsoon

    AceGroupIndia AceCity GreaterNoidaWest

    Sector18 Residential 23BHK

    10of23

  • 9October2013/INDIAEQUITYRESEARCH/REALESTATE AUGUST2013

    Developer NameoftheProject

    City Location Subventionscheme

    Residential/Commercial

    Size(InSqft) Price/unit Possession

    AceGroupIndia AceAspire GreaterNoidaWest

    GreaterNoidaWest

    Residential 23BHK

    AceGroupIndia AcePlatinum GreaterNoidaWest

    SectorZeta1 Residential 234BHK

    SuperTechLimited 48Canvas Gurgaon Sector79 Residential 4BHK

    IITLNIMBUSGroup Thehydepark Noida Sector78 50and50 Residential Constructioninfullswing

    EcnonGroup Ecnon Yamunaexpressway

    Residential Rs1.590mnonwards

    AmrapaliGroup o2valley GreaterNoidaWest

    SectorIV Residential

    AmrapaliGroup LeisurePark GreaterNoidaWest

    GreaterNoidawest

    Residential 23BHK

    AmrapaliGroup AmrapaliTropicalGardens

    GreaterNoidawest

    GreaterNoidawest

    Residential 23BHK

    AmrapaliGroup AmrapaliVeronaheights

    GreaterNoidawest

    GreaterNoidawest

    Residential 234BHK Constructionstarted

    AmrapaliGroup AmrapaliKingswood GreaterNoidawest

    GreaterNoidawest

    Residential 23BHK Constructionstarted

    AmrapaliGroup CenturianPark GreaterNoidawest

    GreaterNoidawest

    Residential IndependentFloors

    Constructioninfullswing

    AmrapaliGroup DreamValley GreaterNoidawest

    GreaterNoidawest

    Residential 123BHK Constructioninfullswing

    KrishInfrastructurePvt.Ltd.

    KrishHarmony Bhiwadi Bhiwadi Residential VillasandExecutiveFloors

    Sunworld Arista Noida NoidaExpressway

    40/30/30 Residential 345BHK Rs5250/Sqft

    Ansalhousing&constructionLtd.

    FlorenceResidency Gurgaon Sector56&57 NoPreEMI Residential 4BHK Rs15.8mnonwards

    ShubhaarambhEstatesPvt.Ltd.

    AstraArcade Shahdara Commercial Rs2.1mn NearCompletion

    UnnatiFortune ElitesArena Noida Sector119 Residential 23BHK(10501350sqft)

    Rs3999/sqft

    JNCconstructionspvt.Ltd.

    Greenvasundharawoods

    sector3vasundhra

    Ghaziabad Residential 23BHK Rs5.925mnonwards

    Prateekgroup Prateekedifice Noida Sector107,Noida Residential 345BHK Rs14.5mnonwards

    Constructionatfullswing

    Prateekgroup PrateekWisteria Noida Sector77 Residential 234BHK NearingPossession

    Source:PhillipCapitalIndiaResearch

    11of23

  • 9October2013/INDIAEQUITYRESEARCH/REALESTATE AUGUST2013

    Bangalore NoimpactofeconomicslowdowninBangaloreThere isnotmuch impactonthe

    salesof residentialproperties in the city.Theonlyvisible impactof theeconomicslowdown is that thebuyerhasbecomehighly sensitive to theoverall ticket size.Withinterestratesgoingupandloaneligibilitycomingdown,thefocushasshiftedfrom per sq ft value to affordability. The ticket size of Rs 58mn is sellingwell.However,therehasbeensomeresistanceintheticketsizeofRs10mnandabove.SalesofpropertiesvaluingRsRs10mnandabovehavedroppeddrastically in thelastoneyear.

    ChennaiBangalore Corridor poised for development The growth corridor willencompass the ChennaiRanipetBangalore area. A number of industries havealreadybeenestablisheduptoRanipet.ThelargestautoandelectroniccorridorsarealsodottingthelineoftheSriperumbudurarea.Intermsofindustrialdevelopmentand foreign direct investment, this corridor has over 400 foreign companies andalmostmore than30Fortune500companieshave setupoperationshere.This isconsidered as the largest industrial cluster in Asia. According to official sources,thosewhoaredevelopingtheDelhiMumbaicorridorwillalsodevelopthiscorridorand it is likely tohave features likehigh speed rail connectivity,bullet train, etc.Besides,anew8lane road corridor isbeingplannedby theGovernmentof Indiawhichwillgiveaboosttotheinfrastructuredevelopmentintheregion.

    The citywitnessed anet absorptionof33,988units in2012,ofwhich the lionsshareof4550percentwasseeninBangaloreEast:Bangalorelargelydrivenbyenduserdemandwitnessedthehighestnumberofunitlaunchesamongstthetopsevencities in India,adding toover22,000unitswithmajorityof them (close to90percent) in theaffordableandmidendsegmentcategory.The residentialmarkethasbeen less speculativewith property being affordable compared to othermetros,leading to continued enduser interest.Withdevelopmentofperipheral locationsand developers offering residential units in various ticket sizes, the buyers havevarietyofoptions tochoose from.The firsthalfof2013witnessedaconsiderableuptrend inthenumberofunit launcheswithorganizeddevelopers launching largeaffordableprojects inperipheral areas such asBudigereCross in theeast,AnekalRoadAttibele in the south, Tumkur Road in the north andMysore Road in thewesternpartofthecity.LocationssuchasEastBangaloreregisteredariseof6percent inhighendand5percent inmidendprimarilydue to IThubproximityanddemandfromITemployees.

    Swanky BMTC bus stations to come up at Kalasipalya, BTM Layout: BangaloreMetropolitanTransportCorporation (BMTC)hasplanned tobuildabus stationatKalasipalyaandatravelandatransitmanagementcentre(TTMC)atBTMLayoutinthenext twoyears.Approvalwasgiven to theproposal for constructionofabusstationatKalasipalyaatacostofRs.2bnusingitsownfunds.TheMinistersaidthattheBMTChadhandedover218acresof its landontheoutskirtsofthecitytotheBruhatBangaloreMahanagaraPalike(BBMP)inexchangeof14acresand35guntasofBBMPlandwithinthecity,including4acresand13guntasoflandatKalasipalya.

    Bangaloreseeshighestproportionofcompany relocations:The total relocationsacrosstopeightcities inthefirsthalf(H1)of2013wasat5.46mnsqftwhichwas2.5timeshighercomparedtothesameperiodlastyearandisonethirdofthetotalleasing activity. During H1 2013, Bangalore recorded the highest proportion ofrelocationswithasubstantialincreaseofmorethanthreetimeswhencomparedtothesameperiodlastyear.CompaniesrelocatedfromCBD/OffCBDlocationssuchasMGRoad,MillersRoad,VittalMallyaRoadandResidencyRoadtoperipheralregionssuchastheOuterRingRoad.

    Niche areas likely to spur real estate growth: FICCIErnst & Young reportAffordablehousing,amusementparks,educationand logistichubsandhealthcareareamongthenicheareasthataredevelopingintherealestatesector,accordingtoaFICCIErnst&Youngreport.Till2000,therealestatesectorwasmostlyrestrictedto housing, commercial and industrial segments. But now there are new asset

    12of23

  • 9October2013/INDIAEQUITYRESEARCH/REALESTATE AUGUST2013

    classes such as entertainment, healthcare, education, transitoriented real estateand housing conducive for senior citizens. These concepts have added a newdimension to the sector and they are expected to spur growth, and attract theattention of developers and investors, says the report. Several developers haverecognizedtheopportunity inseniorcitizenhousingsegment.Thereportmentions40 such projects thatwere proposed till April 2013 in South India, and of them,sevenareinBangalore.Theseniorcitizenhousingsegment,accordingtothereport,catersnotonly to ambient residential space but also tohealthcare, security, andemotionalneedsoftheresidents.

    Realtyslowdown:PostITboom,60,000unitsunsoldinBangaloreThiscityhasover700 residential projects comprising apartments, villas, row houses and plotsamounting to 182,000 units under development. An inventory of roughly 60,000units remains unsold. Of these 80% are apartments and 10% plots, propertyconsultantLJHookersays.

    SobhaDevelopersOperationalupdateforQ2FY140.67mnsqftofnewspacesoldinBangalore(12%QoQgrowth)

    Prestige Estates Operational update forQ2FY14 The Company has sold 1,193Residentialunitsand0.11mnsqftofcommercialspace,aggregatingto1.95mnsqftamountingtoRs.11.5bnofsales.Oftheabove,Prestigeshareis:1,105units1.83mnsq ftamounting toRs.10.68bnofsales,upby31% from thatofQ2FY1213.CollectionsforthequarteraggregatedtoRs.6.2bn,upby23%ascomparedtothecorrespondingQ2FY1213.Thisquarter, theCompanyhas launched4 residentialprojects across Bangalore and Chennai, aggregating to 5.21 mn sq ft of totaldevelopablearea.

    13of23

  • 9October2013/INDIAEQUITYRESEARCH/REALESTATE AUGUST2013

    ResidentialProjectsRecentandNewLaunchesinBangaloreDeveloper Nameofthe

    ProjectLocation Subvention

    schemeResidential/Commercial

    Size(InSqft) Price/unit Possession

    MMRShahGroup 52ndAvenue Sector52 Commerial BusinessSuites,RetailHighStreet,BrandedServiceApartments

    NiteshEstates NiteshColumbussquare

    OffBellaryRoad Residential 22.533.54BHK(12002500sqft)

    NiteshEstates LandOfKings(LongIsland)

    Devanahalli Residential 23BHK Rs4.6mnonwards

    ConstructionUnderway

    HariyanaGroup OrchidNirvana IVCRoad,Devanahalli Residential Rs1899/sqft

    Trifecta Verdure Sarjapur Residential

    VakilHousingDevelopmentCorporation

    VakilWhisperingwoods

    RamanaMaharishiAshram Residential Rs2.46mnonwards

    ConstructioninFullSwing

    SumadhurainfraconPvt.Ltd.

    Srinivasan Hoodi,Whitefield Residential Aug14

    SumadhurainfraconPvt.Ltd.

    Madhuram ECCRoad,Whitefield Residential

    Mahaveergroup Amaze Kadugodi,Whitefield Residential Rs4.065mn

    Keerthi Royalpalms HosurRoad Residential Rs5.57mnonwards

    Keerthi Regalia SarjapurRoad Residential

    SLSdevelopers Sunnygardens Doddanakundi Residential Rs4.1mnonwards

    SLSdevelopers Sapphire MarathahalliSarjapurOuterring

    Residential 3BHKandduplex Rs3.7mnonwards

    SaiRaghavendra Bloomfields Ramgundanahalliborewellroad

    Residential LaunchingSoon

    MantriRealty MantriRoyale MallasandraVillage,KanakapuraRoad

    Residential NearingPossession

    NirmanSonestaaDevelopers

    SonestaaSilverOak NearMarathahalliWhitefieldMainRoad

    Residential

    Prestiage PrestigeJadePavilion

    SarjapurMarthahalliRingRoad

    Residential 23BHK

    DSRInfrastructurePvt.Ltd.

    SunriseTowers HopeFarm,Whitefield Residential 23BHK

    DSRInfrastructurePvt.Ltd.

    Woodwinds SarjapurRoad Residential 23BHK Mar14

    DSRInfrastructurePvt.Ltd.

    EdenGreens OffSarjapurRoad Residential 22.53BHK

    DSRInfrastructurePvt.Ltd.

    Ultima Haralur,OffSarjapurRoad Residential 34BHK(18552850) Oct13

    DSRInfrastructurePvt.Ltd.

    Greenfields Whitefield Residential 345BHK(29804920sqft)

    Oct13

    DSMaxPropertiesPvt.Ltd.

    Attible E.City Residential 23BHK Rs1.4443.680mn

    DSMaxPropertiesPvt.Ltd.

    Peenya Opp.RockLineStudio Residential Plots(30X45),(30X50),(30X55)

    Rs2.6274.271mn

    DSMaxPropertiesPvt.Ltd.

    Opp.Manyata TechPark Residential 23BHK Rs4.35.772mn

    AzvenRealtyPvt.Ltd. Breathe NexttoIndusInternationalSchool,Sarjapur

    Residential Villa

    MaxworthRealtyIndiaLimited

    MaxSplendor Nagarabhavi Residential 2BHK

    MaxworthRealtyIndiaLimited

    MaxWorthCity Vidyaranyapura Residential 23BHK11901900sqft

    Mahaveergroup Amaze Kadugodi,Whitefield Residential 234BHK(13152215sqft)

    Rs4.251mn

    14of23

  • 9October2013/INDIAEQUITYRESEARCH/REALESTATE AUGUST2013

    Developer NameoftheProject

    Location Subventionscheme

    Residential/Commercial

    Size(InSqft) Price/unit Possession

    Mahaveergroup Tranquil Whitefield Residential plotsandvillas(30X40,30X50,40X50,40X60)

    Rs7.738mn

    Mahaveergroup Laurel BTM4thStage Residential plotsandvillas Rs5.915mn

    Mahaveergroup Cedar HesaraghattaRoad Residential 23BHK Rs3.5mn

    Mahaveergroup Desire OffTumkurRoad Residential PremiumVillas Rs3.2mn

    Mahaveergroup Fortune OffMagadiRoad Residential Luxuryflats Rs2.5mn

    Mahaveergroup Galaxy OffMysoreRoad Residential 23BHK Rs2.4mn

    Mahaveergroup Jonquil J.P.Nagar,6thPhase Residential Plots(20X30,30X40,30X50,40X60)

    Rs6.1mn

    Mahaveergroup Oberon JPNagar5thPhase Residential 23BHK Rs5.7mn

    Mahaveergroup Willet KumbenaAgrahara Residential 23BHk Rs4.439mn

    MIMSBuilders Crescenta Whitefield Residential Villas Rs18mn

    VeraciousBuilders&DevelopersPvt.Ltd.

    VaniVilas DoddaballapurRoad,Yelahanka

    Residential 2BHK1250;3BHK14651745

    Rs5.7mn

    Ajmera VillowsPhaseII PhaseI,ElectronicsCity, Residential 2BHK12201320;3BHK14501775

    Ajmera AjmeraAvenue Residential 3BHK21502250sqft

    Ajmera AjmeraStonePark Electroniccity 15/85after2years

    Residential 45BHK Launchingsoon

    Ajmera AjmeraAnnex o%preEMI Residential Launchingsoon

    Unishire UnishireTerraza BehindManyataTechPark o%preEMI Residential

    Unishire UnishirePremia BehindManyataTechPark Residential 22.53BHK

    HebronPropertiesPvt.Ltd.

    HebronEnclave KRPuram Residential 23BHK Rs32.1mnonwards(Rs6299/sqft)

    Jul14

    NDDevelopersLtd. Aroundthemanagoes

    Offsarjapurroad,Gunjur Residential 23BHK Rs22.839.2mn

    RenaissanceHoldings NatureWalk Whitefield Residential Villas Rs22.3mn

    MittalBuilders MittalPalms JakkurYelahanka Residential 34BHK(17953097sqft)

    Rs4.4mnonwards

    KSRProperties Cordelia Dasarahalli Residential 22.53BHK(10351452sqft)

    Rs5.7mnonwards

    KrishnaEnterprises KrishnaMystiq PragathiNagar,Basapura Residential 23BHK Rs3.7mnonwards

    LaunchingSoon

    JainHousing&ConstructionLimited

    JainsVillaVivianaa OffHosurRoad Residential 22.53BHK

    Goyal&Co. Orchidwoods HennurMainRoad Residential 122.53BHK Rs3990/sqft

    Trifecta Esplanade Whitefield Residential 23BHK(12351295,14841832sqft)

    VasathiHousing VasathiAvante Hebbal Rs4.536mn

    KarleInfra KarleZenithresidences

    NearNagavaraLake Rs18mnonwards

    PionierDevelopers PionierResidency HSRlayout o%preEMI Residential

    ShriramProperties ShriramSameeksha Jalahalli Plots Plots Rs3.0mn

    NDDevelopersLtd. N.D.PassionElite Sarjapurroad Plots Plots(20003000sqft) Rs11.1mn

    NDDevelopersLtd. N.D.Passion HarlurMainRoad Residential Villas/Apartment Rs7.7mn

    GopalanEnterprises UrbanWoods RichHomes,RichmoundRoad

    Residential 23BHK(10701362sqft)

    Keerthi Royalpalms HosurRoad Residential 23BHK11901900sqft

    Rs5.57mnonwards

    Keerthi Chalet Horamavu Residential 234BHK(13152215sqft)

    RadiantGroup RadiantHeritage Rayasandra Residential 23BHK Rs3.850mn

    DLF Woodlandheights Rajapura,nearelectroniccity

    Residential 2BHK1250;3BHK14651745

    Rs3.3mn ConstructioninFullSwing

    Prestige SummerFields OffSarjapurRoad Residential 2BHK12201320;3BHK14501775

    15of23

  • 9October2013/INDIAEQUITYRESEARCH/REALESTATE AUGUST2013

    Developer NameoftheProject

    Location Subventionscheme

    Residential/Commercial

    Size(InSqft) Price/unit Possession

    ReliaableDevelopers ReliaableGardeniaa OffSarjapurroad,closetohsrlayout

    Residential 23BHK

    Fireluxurdeveloperspvt.Ltd.

    TheEmpyrean NH207 Residential 22.53BHK Rs6.6mnonwards

    KoltePatilDevelopersLimited

    Raaga KannurRoad,offHennurmainRoad

    Residential 23BHK Rs3.117mnonwards

    SamprasiddhiInfratech GreenEdge OffThanisandramainRoad

    Residential 23BHK Rs3456/Sqft

    RadiantGroup RoyalWoods NearITPL,Whitefield Residential 23BHK(9901726Sqft)

    Rs4.170mn+Reg.

    RadiantGroup Spencer Kammasandra,Nr.ElectronicCity

    Residential 226Apartments Rs4.880mn+Reg.

    RadiantGroup LakeView Medihalli,KRPuram Residential 3BHK Rs3.090mn+Reg.

    RadiantGroup Reshan OffBannerghattaRoad Residential 234BHK Rs3.50mn+Reg.

    Jan14

    RadiantGroup JasmineTerrace Yelahanka Residential 23BHK Rs4.80mn+Reg.

    Mar14

    RadiantGroup WhiteOrchid BannerghattaMainRoad Residential 23BHK Rs5.264mn+Reg.

    Mar14

    GGRHousingIndiaPvt.Ltd.

    AdityaGrand Off.Whitefield Residential 23BHK

    SLSdevelopers SLSSunrise OffMarathahalliSarjapur Residential Rs3.65mnonwards

    PresidentProperties Leon Yelahanka Residential 4.67.6mn+reg

    CelebrityStructures CelebritySquare AttibeleSarjapuraroad Residential Rs1.770mn2.330mnonwards

    ShriramProperties ShriramSmrithi SarjapurAttibeleRoad Residential 200HamletVillas Rs3.4mn4.5mnonwards

    Source:PhillipCapitalIndiaResearch

    Chennai Flat buyers to pay 2% more for registration in Chennai People buying new

    apartmentsintheTamilNadustatewillnowhavetopay2%additionalregistrationcharges as the state has made registration of construction agreements signedbetween builders and buyersmandatory. The undivided share of land (UDS)wasregisteredatsubregistraroffices,forwhichthegovernmentcharges5%stampduty,2% surcharge (for development of local bodies like corporations and panchayats)and 1% registration fees. Overall, for registration of a new apartment underconstruction, the buyer pays 8% of the value of UDS for registration. Theconstructionagreementwasneverregisteredearlier.Hereafter,thebuyerwillhaveto pay an additional 1% stamp duty and 1% registration fees on the cost ofconstruction.Also,theconstructionagreementhastoberegisteredatsubregistrarofficeswithin120daysofsigningtheagreement.Withoutaregisteredconstructionagreement,UDSwillnotberegistered.NecessaryamendmentshavebeenmadetotheRegistrationActandthenewrulescameintoeffectonOctober1.

    ChennairecordedsteadyincreaseinrelocationsinH12013comparedtothesameperiodlastyearwithrelocationactivityconcentratedinlocationssuchassuburbanGuindy and suburban Perungudi Taramani providing quality spaces with moreavenuesforscalabilityatrentalslowerbyapproximately2030percentthanprimelocationswithinthecity.

    Newresidentialprojectslaunchdropsby56%inChennaiCushman&Wakefield(C&W)reportstatedthatChennaiwitnessedinfluxofaround5,500residentialunits

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    in the housingmarket during the first half of 2013, a significant drop of 56% ascompared to the same period last year.During the first half of 2013,more than4,500oraround96%ofthesenewunitswere launched intheaffordableandmidend segments mainly in locations like Rajiv Gandhi Salai, GST, Velachery andMogappair.

    ResidentialProjectsRecentandNewLaunchesinChennaiDeveloper NameoftheProject Location 20/80

    schemeSize(InSqft) Price/unit Possession

    ColourHomes ColourGates Perumbakkam 23BHK(7651315sqft)

    Rs3290/Sqft

    Mayances Myans Mayajaal,ECR LuxuryVillas(345BHK)

    Rs25/35/45mn

    MCBAassetz Harini'sAishwaryan Selaiyur,Tambaram PremiumResidentialDeluxeApartment

    Rs3.69mnonwards

    AsviniFoundations AkilaHeights Sembakkam 123BHK(5701340sqft)

    Rs4700/Sqft

    RoyalCivilTech GowrisonVillas PorurKattupakkam Villas Rs4200/Sqft

    Arinhant/Unitech Greenwoodcity PlotsonOMR 18003500sqftplots

    Plots(18005814sqft)

    JAAGHomes AchyuthaSquare VilliVakkam 22.53BHK(12231421Sqft)

    Rs8500/Sqft

    GreenHomeFarms&ResortsPvt.Ltd.

    VillaGreen 35A,NorthUsmanRoad 500Villas(10003000Sqft)

    ConstructioninFullSwing

    KGFoundationsPvt.Ltd. KGSingnatureCity Modappair 123BHK6101410 Rs3.8mnonwards

    AsviniFoundations Amanyaa Nellikuppam 123BHK(6061058sqft)

    Rs1.3.2.4mn

    AsviniFoundations Atvarika Kelambakkam Rs6.68mn

    AsviniFoundations AkilaHeights Sembakkam Rs37.1mn

    AsviniFoundations NRDTowers Avadi Rs1.85.4mn

    Arihant Firangipani behindsiruseriitpark 2BHK760sqft

    Landmarkconstruction Landmark'sGrange Palavakkam,ECR 4BHK47764917Sqft

    Unitech Uniworldcity Nallambakkam, 23BHKUnihomes,Palmvillasandaspen

    greens

    Rs22502300villasRs3550,

    ApartmentRs2800

    VGNdevelopersPvt.Ltd. VGNStafford Ambattur 123BHK Rs2.0785.733mn

    VGNdevelopersPvt.Ltd. VGNKarona nearporur 2BHK Rs4.6525.511mn

    VGNdevelopersPvt.Ltd. VGNTempleTown Thiruverkadu 123BHK Rs2.4986.174mn

    VGNdevelopersPvt.Ltd. VGNBrixton Irungattukottai 2BHK Rs2.488mn

    Arihant Villaviviana Maraimalainagar 3BHK1413sqft;4BHK3686sqft;residentialplots

    1810sqft.

    Shantiniketan ShantiniketanAltair Altair 12BHK Rs1.4131.691mn

    Northtownestatespvtltd. NorthTown perambur 123BHK6501396sqft

    Constructioninfullswing

    BaashyaamConstructionPvt.Ltd.

    HappyWindows Kattupakkam 123BHK5511676Sqft

    Dec13

    Atikramya Iha MountRoad 3BHK1271Sqft

    Atikramya Aurum Tambaram 10051056Sqft ComingSoon

    Atikramya Foyer Kilkatalai 9001400Sqft ComingSoon

    Landmarkconstruction Ayna Virugambakkam 23BHK(11841704sqft)

    Source:Mediasources,PhillipCapitalIndiaResearch

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    Commercial Unitech inksRs8bn leasingdealwithAonHewitt Over0.8msf feetofspaceat

    UnitechsGurgaon InfospaceTikriSEZhasbeen leased.The total leasableareaoncompletionofthisSEZprojectis3.32mnsqft.ThecurrentrentalvalueintheareaisRs60persqfootpermonth.Aboutsevenlakhsqfeethasalreadybeenoccupied,bytenantssuchasGenpact,ColtandCognizant.

    VolvoIndiainnegotiationsttakeuponemnsqftoffullyfittedoutofficespaceinBangalore forarecordRs7bnVolvo India,whichoffersarangeofbuses, trucksandconstructionequipment,currentlyhassixdifferentofficespaces inBangalore.Thismovewould see them consolidate inone locationat theOuterRingRoad inMarathahalli, in the eastern part of Bangalore, which houses many technologycompanies.ThecompanyisinthefinalstagesofnegotiationswithBangalorebasedrealestatedeveloper,theBagmaneGroup.

    RMZDevelopers(Bangalore)closinginonRs7bnmilestonedealRMZDevelopersisclosinginonamilestonetransactionwhichwillseethedevelopersellingclosetoaonemnsqftoffullyfittedoutofficespacetoasingleclientforasmuchasclosetoRs 7 bn. RMZ Developers recently signed a significant leasing transaction withHoneywellTechnologiesto leaseonemnsqftatRs47persquarefeetonayearlybasistakingthetotalrentalclosetoRs530mnasHoneywellseekstoconsolidateitsdifferentoffice locations inBangalore.Bankers indicate that this lease transactionmaybeconvertedtotheselldealinstead.

    PVP,RMZtopbiddersforBangaloreFourSeasonsfromGoldmanSachsGoldmanisinclinedtogowithadeveloper,whichcouldtiltthescalesinfavourofRMZ,theyadded. Hyderabadbased PVP, named after its founder and serial entrepreneurPrasadVaraPotluri,hasbidoverRs4bn.RMZCorphasofferedaboutRs3.5bn inbids fired lessthantendaysago.The twooffersvalue thehotelprojectatRs5.56bn,includingaboutRs1.8bndebt,andhascomebelowaskingprice.

    Officespaceleasingdrops20%qoqinJulySeptember2013Despitea32%dropinofficespacetakeup inthequarter,Bangaloresawthehighesttakeupofspace2.9mnsqftcontinuedtoaccountingfor42%ofthetotaldemandforspaceacrossthe top seven cities. Leasing activity in Delhi NCR was down 27% quarteronquarter.KolkataandChennaiweretheonlycitiesthatrecordedagrowthintakeupofofficespace28%and17%qoqrespectively.

    Retail Cafe Coffee Day books prime Bangalore space Bangaloreborn CCD has been

    relentless in clustering the high consumption locations at a premium, in a cityalreadyboastingofthehighestcafedensityhometoroughly440ofthem.CCDhastakenatoughstandand isputtinga lotofeffort inacquiringspacesthathavehigh visibility. In terms of rentals, they are absorbing prices 10% to 15% abovemarketratesandarealsoputtingdownhighersecuritydepositsthantheaverage610month rentalvalue.CCD isnow the fastest toclosea leasingdeal in the retailsector. They close deals within 30 days as against an industry average of threemonthsormore.

    TataRealty,L&TputmallprojectsontheblockTataRealtyand Infrastructure, islookingtosellfourofitsmalls.Themallsettoopen,andnowontheblock,isspreadover0.7mnsqftinAmritsar,Punjab.SaleoftheAmritsarmallispartofitsplanstogiveexittoTataRealtyandInfrastructureFund1(TRIF1),whichowns90percentinitandropeinnewinvestors.Accordingtopropertyconsultants,theAmritsarmallisexpected to fetch thecompanyaroundRs4bn.TataRealtywouldalso look foranexitfortheirexistinginvestorsinits450,000sqftmallinNagpurwhichisexpectedtobecompletedinthenextthreeyears.TataRealtyisalsokeentobringininvestors

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    inits300,000sqftmallprojectinBangaloreandanotheroneinGurgaon.Thesetwoprojectsarenotpartof currentTRIF fund. Larsen&Toubro is looking tobring ininvestors in itsmallproject inSeawoods,NaviMumbai.Themall ispartofthefirstphaseofcommercialdevelopmentontopofSeawoodssuburbanrailwaystation inNaviMumbai.L&Thasalsoputits1.2mnsqftmallinChandigarhontheblock.Thefourmontholdmall isgeneratingaverage rentalsofRs90per sq ft.According tosources,thecompanyisexpectingoverRs10bnfromthesale.

    FundFlows/LandDeals/Infrastructureannouncements Realty fund investsRs550mn inRohanBuildersprojectsRohanBuilders,Pune

    based property developer, has partneredwith Avenue Venture Real Estate Fund(AVREF) for developing a residential project inBangalore.VREF, aMumbaibaseddomestic real estate fund which has invested in residential projects in Pune,BangaloreandChennai,has investedRs550mn inRohansproject.ThesizeoftheprojectisaboutsevenlakhsquarefeetofsaleableareaandislocatedinBoganahalli,Bangalore. Along with our expansion plans in Pune, this acquisition gives us anopportunity to expand our existing footprint in Bangalore. These two citiesrepresentthehighestpotentialfordeveloperscateringtoresidentialdemandfromthrivingITsector.

    MMRDA signs MoU with Korea government Mumbai Metropolitan RegionDevelopmentAuthority(MMRDA)hassignedamemorandumofunderstandingwithKorea'sMinistryofLand, InfrastructureandTransport forpreparingamasterplanfor developing eastern parts of themetropolitan region. The planwould look atdeveloping the126km longVirarAlibaugMultiModalCorridor,whichwashighlyrecommended by the Comprehensive Transportation Study conducted by theMMRDAandfundedbytheWorldBank.TheKoreanteamwillsharebestpracticeswithMMRDA'splannersandworkoutadetailedmasterplanandlanddevelopmentmodels along with funding patterns beginning January 1, 2014. The plan,developmentmodels and the fundingpatterswill thenbe submitted to the stategovernment,forapproval,withinaperiodofoneyear.

    MMRDA invitesbids forundergroundMetrocorridor TheMumbaiMetropolitanRegionDevelopmentAuthority (MMRDA)has invitedbids forprequalification forthe construction of the ColabaBandraSeepzMetro,whichwill beMumbai's firstundergroundMetrocorridor

    Private equities book healthy profits in Bangalore realty market Bangaloreaccounted for fiveoutof a totalofnine investor exits in theApril to Septemberperiod,givingthemanaverageinternalrateofreturn(IRR)of23.5%.ICICIPrudentialPMS clocked the highest IRR of 27%, in the July to September quarter, from itsinvestments in two projects developed by southern real estate major ShriramProperties. In the same period, the fund had exited from its investment in aresidentialtownshipbeingdevelopedbyKumarUrbanDevelopers,inPune,withanIRR of 20%. HDFC AMC exited from its investments in premier BangalorebaseddeveloperNiteshEstates,withanIRRof24%.

    Singapore's Jumabhoy family enters Indian real estate market Singapore'sJumabhoyfamily,onceregardedasthewealthiestnonChinesefamily inSoutheastAsia,isenteringtheIndianrealestatemarkettodevelopmilliondollarhomes.WithanestimatedsalesvalueofRs3.5bn,theresidentialproject,RafflesPark,locatedinBangalore's IThubofWhitefield,consistsof61villasspreadacrossa15acre landparcel.

    Alchemist Township Buys Residential Land From Highland Group Delhibasedrealty firmAlchemistTownshiphasboughtabout20acres inKolkata froma localbuilderHilandGroupandwillinvestRs6bntodeveloparesidentialproject.

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    JP Morgan may be eyeing an entry in one of the largest real estate deals BlackstonealongwithBangalorebasedEmbassyDevelopersareworkingonsewingup a Rs 19bn deal to buy out 106 acre SEZ development under Vrindavan TechVillage.JPMorganisunderstoodtobelookingatpickingupastakeinthisprojectifan investor in the consortium isoptingoutorparing stake.HDFCProperty is theother fund which is working with Blackstone and Embassy in this transaction.VrindavanTechVillageispromotedbyMithileshKumarTripathi,ChairmanofVikasTelecom Ltd,and isdevelopedbyAssetzHomes. It isunderstood that around22acreshasbeendevelopedwith2mnsqftofspacebuiltfortechnologycompanies.Embassy is expected to develop the rest for IT firms and also for residentialpurposes.

    RaviPillaitobuy$100mnstakeinTrump,WorldTradeCentreprojectsRaviPillai,theNRIbillionairebased inBahrain, ispickingupstakeworthclose to$100mn inspecialpurposevehiclefloatedbyPunebasedrealtorPanchshilRealtytobuildtwoiconicpropertiesinthatcityTrumpTowersandWorldTradeCentre.

    WadiastosellBritanniaproperties,raiseRs700crThisispartofWadia'splantoraise fundsonBritanniasbooksanduse theproceeds in launchingnewproductsand expand globally. Britannia plans tomove its headquarters to a 90,000 sq ftcommercialpropertyinWhitefieldfromitssixacresheadquartersinthegardencity.

    Rs.5bnconventioncentreplannednearthe internationalairportatDevanahallieproposedprojectwouldbetakenuponapublicprivatepartnershipmodel.Whilethe government would give land, the private company would make all theinvestment and build the conventional centre besides providing the necessaryinfrastructure

    BMRCL(Bangalore)tominimiselandacquisitionforphase2Thecorporationhadestimatedthatabout2,000propertiesspreadoverabout200hectaresoflandwouldbe required for the72kmPhase2 for constructionof fourextension linesof theEastWest and NorthSouth corridors of Phase 1 and two new lines. Acquisitionwouldberestrictedforlandrequiredforviaductandstationsalone.

    WideningofBannerghattaRoad(Bangalore)soonBannerghattaRoadisoneoftheroadsnotifiedforwideningintheRevisedMasterPlan2015(RMP2015).The7.5kmstretchwillbewidened to150 ft from theexisting90 ft.Already,405propertieshavebeenidentifiedforacquisition.

    Regulatory/NationalTrends OtisseesscopeforgrowthinIndia'srealestatemarketLeadingmanufacturerof

    elevators,USbasedOtis,isbettingbigonIndiasrealestatemarket,mostlyvertical,togrowitsbusinessinthecountry.Globally,Chinatopsthelistwithitsconsumptionofelevatorsat500,000ayear,makingfor60percentofnewequipmentaroundtheworld,andIndiaisatnumbertwowith47,000units.NorthAmericaisfarbehindindemandfornewelevatorsat just18,000unitsperannum.Thecompanywouldbecautiousoverthenextsixto12months,thoughithasnotbeenadverselyimpactedinitsorderssofar.Evenitsdecisiontoopenasecondplantislikelytobetakenafterthat, around the endof 2014, following an assessmentof the real estatemarketacrossthecountryincludingtiertwoandthreecities.

    Buildersatprivatelendersmercyasdemandfalls;forcedtopayinterestratesashighas42%Thestressamongrealestatedevelopersisnowshowingclearly.Privatemoneylendersarebackindemandwithsmallandmidsizedrealestatedeveloperspickingup shorttermmoneyat interest ratesashighas42%ayear toavoid theprospectofreducingpropertyprices.

    Governmentplansspecialcourttoclear landcase Aimingtoraiserevenuesandresolve over 3,000 landrelated cases in Bangalore Urban district, the stategovernmentisaimingtosetupaspecialcourttodealwiththem.

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    9October2013/INDIAEQUITYRESEARCH/REALESTATE AUGUST2013

    KeyTakeawaysfromManagementmeet:NiteshEstates Mostoftheprojectsareexecutedthroughthedevelopmentmodelwhichensures:

    o Lowupfrontlandacquisitioncosto Projectdevelopmentinpremiumlocationso Deploymentofcapitaltowardsprojectdevelopmento Earlymonetizationduetofastersalability.

    Company is selectively pursuing new opportunities for expanding into newgeographieslikeGoa,ChennaiandCochin.

    Company ismainlyconcentratetowardsmidincomegroupwithticketsizerangingforRs48mn.Currentlycompanys89%oftheprojectsaretargetingtheMidincomegroupandbalance ishighincomegroup.Marginsonthe luxuryprojectsarebetterthatofprojectstargetedformidincome.

    CompanyaimstotargetIRRintherangeof3335%beforetakingupanyproject.Theprivateequity investorsget IRR in the rangeof2426%.ThecompanywouldhaveanotherRs360mntowardsoneofitsdebtstructuredprivateequityinvestmentsandRs750mn towards another PE investment.Over and above these therewould aliabilitytowardsbuyingbacktheequityinvestmentofHDFCRealEstatefund.

    CommentaryonBangaloremarket:ManagementstatesthattheBangaloremarketis driven by end users. Absorption rate over here will not materially go up.Managementfeelsthatthepriceatthecurrentlevelswillnotsignificantlychangeinthe nearterm. ~66% of the Bangalore residential market is basically hasrequirementof3BHKandrest34%istowards2BHK.ThemanagementalsostatedthatBangaloremarket absorbs 40,000 units annually,which has remained so forsincelast4years.

    Prices inBangalorewentupby1518%over last18months (management statedthatsubventionschemescouldhavecontributedpartiallytothisphenomenon).Thecompany was able to raise prices till CY12, However, YTD price hike has beenmarginal.40%ofitscustomerswouldbefromIT/ITES.

    TheSarjapurMarthalliOuterRingRoadhashithertowitnessedhighabsorptionrateshenceisgettingsaturatedandnowdemandisgraduallyshiftingtowardsHennur.

    TheCompanyisdevelopingIndiasfirstRitzCarlton,oneoftheworld'sfinestluxuryhotelbrands,spreadover0.50mn sq. ft. Ithas277 richlyappointedguest roomsandsuites,multiplediningoptionsandotherextravagantfacilities.TotalprojectcostisRs7.7bn.Companyisexpectedtostartthehotelincoupleofmonths.LeaseholdlandpaymentisRs1.19bn.

    NiteshMall isbeingdevelopedat Indiranagar,oneofthebiggestshoppinghubs inBangalore. Spread over 1.11mn sq. ft., themall has around 0.70mn sq. ft. ofleasablearea.ThecompanywouldneedtoraiseRs3bndebtforconstructionofthemall,whichwould take 28months. The company is looking at rentals of Rs140psf/pm.

    Keyongoing/forthcomingProjectso PaloAltoRevenuePotentialofRs5.3bno BritishColumbiaRevenuePotentialofRs2.76bno NapaValleyRevenuePotentialofRs4bno ParkAvenueRevenuePotentialofRs2bn

  • 22of23

    9October2013/INDIAEQUITYRESEARCH/REALESTATEMONTHLYBUZZ

    ManagementVineetBhatnagar(ManagingDirector) (9122)23002999JigneshShah(HeadEquityDerivatives) (9122)66679735

    ResearchAutomobiles DeepakJain (9122)66679758 Banking,NBFCsManishAgarwalla (9122)66679962SachitMotwani,CFA,FRM (9122)66679953 Consumer,Media,TelecomNaveenKulkarni,CFA,FRM (9122)66679947EnnetteFernandes (9122)66679764VivekanandSubbaraman (9122)66679766 CementVaibhavAgarwal (9122)66679967EconomicsAnjaliVerma (9122)66679969

    Engineering,CapitalGoodsAnkurSharma (9122)66679759Infrastructure&ITServicesVibhorSinghal (9122)66679949VarunVijayan (9122)66679992MetalsDhawalDoshi (9122)66679769DharmeshShah (9122)66679974MidcapsKapilBagaria (9122)66679965Oil&Gas,AgriInputsGauriAnand (9122)66679943SaurabhRathi (9122)66679951

    PharmaSuryaPatra (9122)66679768Retail,RealEstateAbhishekRanganathan,CFA (9122)66679952NehaGarg (9122)66679996QuantShikhaKhurana (9122)66679948Sr.ManagerEquitiesSupportRosieFerns (9122)66679971

    Sales&DistributionKinshukTiwari (9122)66679946AshvinPatil (9122)66679991ShubhangiAgrawal (9122)66679964KishorBinwal (9122)66679989SidharthAgrawal (9122)66679934DipeshSohani (9122)66679756

    DileshDoshi(SalesTrader) (9122)66679747SuniilPandit(SalesTrader) (9122)66679745RajeshAshar(SalesTrader) (9122)66679748

    MayurShah(Execution) (9122)66679945

    ContactInformation(RegionalMemberCompanies)

    SINGAPORE

    PhillipSecuritiesPteLtd250NorthBridgeRoad,#0600RafflesCityTower,

    Singapore179101Tel:(65)65336001Fax:(65)65353834

    www.phillip.com.sg

    MALAYSIAPhillipCapitalManagementSdnBhdB36BlockBLevel3,MeganAvenueII,

    No.12,JalanYapKwanSeng,50450KualaLumpurTel(60)321628841Fax(60)321665099

    www.poems.com.my

    HONGKONGPhillipSecurities(HK)Ltd

    11/FUnitedCentre95QueenswayHongKongTel(852)22776600Fax:(852)28685307

    www.phillip.com.hk

    JAPANPhillipSecuritiesJapan,Ltd

    42NihonbashiKabutocho,ChuokuTokyo1030026

    Tel:(81)336662101Fax:(81)336640141www.phillip.co.jp

    INDONESIAPTPhillipSecuritiesIndonesia

    ANZTowerLevel23B,JlJendSudirmanKav33A,Jakarta10220,Indonesia

    Tel(62)2157900800Fax:(62)2157900809www.phillip.co.id

    CHINAPhillipFinancialAdvisory(Shanghai)Co.Ltd.

    No550YanAnEastRoad,OceanTowerUnit2318Shanghai200001

    Tel(86)2151699200Fax:(86)2163512940www.phillip.com.cn

    THAILANDPhillipSecurities(Thailand)PublicCo.Ltd.

    15thFloor,VorawatBuilding,849SilomRoad,Silom,Bangrak,Bangkok10500Thailand

    Tel(66)222680999Fax:(66)222680921www.phillip.co.th

    FRANCEKing&ShaxsonCapitalLtd.

    3rdFloor,35RuedelaBienfaisance75008ParisFrance

    Tel(33)145633100Fax:(33)145636017www.kingandshaxson.com

    UNITEDKINGDOMKing&ShaxsonLtd.

    6thFloor,CandlewickHouse,120CannonStreetLondon,EC4N6AS

    Tel(44)2079295300Fax:(44)2072836835www.kingandshaxson.com

    UNITEDSTATESPhillipFuturesInc.

    141WJacksonBlvdSte3050TheChicagoBoardofTradeBuilding

    Chicago,IL60604USATel(1)3123569000Fax:(1)3123569005

    AUSTRALIAPhillipCapitalAustralia

    Level37,530CollinsStreetMelbourne,Victoria3000,Australia

    Tel:(61)396298380Fax:(61)396148309www.phillipcapital.com.au

    SRILANKAAshaPhillipSecuritiesLimited

    Level4,MillenniumHouse,46/58NavamMawatha,Colombo2,SriLanka

    Tel:(94)112429100Fax:(94)112429199www.ashaphillip.net/home.htm

    INDIAPhillipCapital(India)PrivateLimited

    No.1,CBlock,2ndFloor,ModernCenter,JacobCircle,K.K.Marg,MahalaxmiMumbai400011Tel:(9122)23002999Fax:(9122)66679955www.phillipcapital.in

    http://www.phillip.com.sg/http://www.poems.com.my/http://www.phillip.com.hk/http://www.phillip.co.jp/http://www.phillip.co.id/http://www.phillip.com.cn/http://www.phillip.co.th/http://www.kingandshaxson.com/http://www.kingandshaxson.com/http://www.phillipcapital.com.au/http://www.ashaphillip.net/home.htmhttp://www.phillipcapital.in/

  • 9October2013/INDIAEQUITYRESEARCH/REALESTATEMONTHLYBUZZ

    DisclosuresandDisclaimersPhillipCapital(India)Pvt.Ltd.hasthreeindependentequityresearchgroups:InstitutionalEquities,InstitutionalEquityDerivativesandPrivateClientGroup.ThisreporthasbeenpreparedbyInstitutionalEquitiesGroup.Theviewsandopinionsexpressed inthisdocumentmayormaynotmatchormaybecontraryattimeswiththeviews,estimates,rating,targetpriceoftheotherequityresearchgroupsofPhillipCapital(India)Pvt.Ltd.ThisreportisissuedbyPhillipCapital(India)Pvt.Ltd.whichisregulatedbySEBI.PhillipCapital(India)Pvt.Ltd.isasubsidiaryofPhillip(Mauritius)Pvt.Ltd.Referencesto"PCIPL"inthisreportshallmeanPhillipCapital(India)Pvt.Ltdunlessotherwisestated.ThisreportispreparedanddistributedbyPCIPLforinformationpurposesonlyandneithertheinformationcontainedhereinnoranyopinionexpressedshouldbeconstruedordeemed tobeconstruedassolicitationorasofferingadvice for thepurposesof thepurchaseorsaleofanysecurity, investmentorderivatives.The informationandopinionscontained intheReportwereconsideredbyPCIPLtobevalidwhenpublished.Thereportalsocontains informationprovidedtoPCIPLbythirdparties.Thesourceofsuchinformationwillusuallybedisclosedinthereport.WhilstPCIPLhastakenallreasonablestepstoensurethatthisinformationiscorrect,PCIPLdoesnotofferanywarrantyastotheaccuracyorcompletenessofsuchinformation.AnypersonplacingrelianceonthereporttoundertaketradingdoessoentirelyathisorherownriskandPCIPLdoesnotacceptanyliabilityasaresult.SecuritiesandDerivativesmarketsmaybesubjecttorapidandunexpectedpricemovementsandpastperformanceisnotnecessarilyanindicationtofutureperformance.This reportdoesnothave regard to the specific investmentobjectives, financial situationand theparticularneedsofany specificpersonwhomay receive this report. 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inthisresearchreport.TheResearchAnalystcertifiesthathe/sheorhis/herfamilymembersdoesnotownthestock(s)coveredinthisresearchreport.Independence:PhillipCapital(India)Pvt.Ltd.hasnothadaninvestmentbankingrelationshipwith,andhasnotreceivedanycompensationforinvestmentbankingservicesfrom,thesubjectissuers inthepasttwelve (12)months,andPhillipCapital (India)Pvt.Ltddoesnotanticipatereceivingor intendtoseekcompensation for investmentbankingservices fromthesubjectissuersinthenextthree(3)months.PhillipCapital(India)Pvt.Ltdisnotamarketmakerinthesecuritiesmentionedinthisresearchreport,althoughitoritsaffiliatesmayholdeitherlongorshortpositionsinsuchsecurities.PhillipCapital(India)Pvt.Ltddoesnotholdmorethan1%ofthesharesofthecompany(ies)coveredinthisreport.SuitabilityandRisks:Thisresearchreport isfor informationalpurposesonlyand isnottailoredtothespecific investmentobjectives,financialsituationorparticularrequirementsofanyindividual recipienthereof.Certainsecuritiesmaygive rise tosubstantial risksandmaynotbesuitable forcertain investors.Each investormustmake itsowndeterminationas to theappropriatenessofanysecuritiesreferredtointhisresearchreportbaseduponthelegal,taxandaccountingconsiderationsapplicabletosuchinvestoranditsowninvestmentobjectivesorstrategy,itsfinancialsituationanditsinvestingexperience.Thevalueofanysecuritymaybepositivelyoradverselyaffectedbychangesinforeignexchangeorinterestrates,aswellasbyotherfinancial,economicorpoliticalfactors.Pastperformanceisnotnecessarilyindicativeoffutureperformanceorresults.Sources,CompletenessandAccuracy:ThematerialhereinisbaseduponinformationobtainedfromsourcesthatPCIPLandtheresearchanalystbelievetobereliable,butneitherPCIPLnortheresearchanalystrepresentsorguaranteesthattheinformationcontainedhereinisaccurateorcompleteanditshouldnotberelieduponassuch.Opinionsexpressedhereinarecurrentopinionsasofthedateappearingonthismaterialandaresubjecttochangewithoutnotice.Furthermore,PCIPLisundernoobligationtoupdateorkeeptheinformationcurrent.Copyright:ThecopyrightinthisresearchreportbelongsexclusivelytoPCIPL.Allrightsarereserved.Anyunauthorizeduseordisclosureisprohibited.Noreprintingorreproduction,inwholeorinpart,ispermittedwithoutthePCIPLspriorconsent,exceptthatarecipientmayreprintitforinternalcirculationonlyandonlyifitisreprintedinitsentirety.Caution:Riskoflossintradingincanbesubstantial.Youshouldcarefullyconsiderwhethertradingisappropriateforyouinlightofyourexperience,objectives,financialresourcesandotherrelevantcircumstances.ForU.S.personsonly:ThisresearchreportisaproductofPhillipCapital(India)PvtLtd.whichistheemployeroftheresearchanalyst(s)whohaspreparedtheresearchreport.Theresearchanalyst(s)preparingtheresearchreportis/areresidentoutsidetheUnitedStates(U.S.)andarenotassociatedpersonsofanyU.S.regulatedbrokerdealerandthereforetheanalyst(s)is/arenotsubject tosupervisionbyaU.S.brokerdealer,and is/arenot required tosatisfy the regulatory licensing requirementsofFINRAor required tootherwisecomplywithU.S. rulesorregulationsregarding,amongotherthings,communicationswithasubjectcompany,publicappearancesandtradingsecuritiesheldbyaresearchanalystaccount.ThisreportisintendedfordistributionbyPhillipCapital(India)PvtLtd.onlyto"MajorInstitutionalInvestors"asdefinedbyRule15a6(b)(4)oftheU.S.SecuritiesandExchangeAct,1934(theExchangeAct)andinterpretationsthereofbyU.S.SecuritiesandExchangeCommission(SEC)inrelianceonRule15a6(a)(2).IftherecipientofthisreportisnotaMajorInstitutionalInvestorasspecifiedabove,then itshouldnotactuponthisreportandreturnthesametothesender.Further,thisreportmaynotbecopied,duplicatedand/ortransmittedonwardtoanyU.S.person,whichisnottheMajorInstitutionalInvestor.In reliance on the exemption from registration provided by Rule 15a6 of the ExchangeAct and interpretations thereof by the SEC in order to conduct certain businesswithMajorInstitutionalInvestors,PhillipCapital(India)PvtLtd.hasenteredintoanagreementwithaU.S.registeredbrokerdealer,MarcoPoloSecuritiesInc.("MarcoPolo").TransactionsinsecuritiesdiscussedinthisresearchreportshouldbeeffectedthroughMarcoPolooranotherU.S.registeredbrokerdealerPhillipCapital(India)Pvt.Ltd.Registeredoffice:2ndFloor,CBlock,ModernCentre,Mahalaxmi,Mumbai400011

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