DDA: No allotments till final scam report

NEW DELHI: The DDA on Monday assured the Delhi High Court that it would not begin the process of flat allotment to the winners of DDA housing scheme until the Economic Offence Wing (EOW) of the city police completes its investigation into the alleged scam.

The housing body also submitted its in-house inquiry report about the alleged scam before Justice Hima Kohli. The agency claimed to have carried out an exhaustive in-house probe into the entire affair and found "nothing amiss.''

After taking cognizance of the report the court asked EOW to expedite the investigation and posted the matter till July 30.

The court was hearing a bunch of petitions seeking cancellation of the draw of lots, which took place in January. Petitioners have alleged that DDA had illegally allowed applicants under the scheduled tribe category from other states to participate in the exercise.

According to the petitioners, under the DDA Act the housing body is not entitled to accept the applications filed by the people who are residents of states other than Delhi. Some of the petitioners have also challenged the eligibility criteria drawn up by DDA for the draw.

In January, the housing body held the draw for allotment of 5,000 flats under the housing scheme but later a complaint was registered accusing it of committing irregularities during the draw.

The EOW of Delhi Police's crime branch is probing the alleged irregularities in the draw and so far seven persons, including Laxmi Narayan Meena, a former SBI employee and a resident of Rajasthan's Jhunjhunu district, have been arrested.

Source:http://timesofindia.indiatimes.com/articlelist/msid--2128839596,curpg-3.cms

Now, DLF's sops for realtors marketing Chennai project

CHENNAI: Perhaps, it is difficult market conditions that has made realty major DLF incorporate a new element in its overall selling strategy. After trying to woo consumers through its price reduction strategy, it has now announced an incentive package for realtors, marketing its ‘Garden City’ project in Chennai.

It was last Saturday, that around 20 realtors got back their marketing verve when they heard that the Gurgaon-based DLF plans to revise the incentive package for agents upward to 3% against the industry norm of 2%.

"With developers finding it difficult to sell in these turbulent times, the scheme of 3% commission for new bookings has reassured us," a realtor told ET, on conditions of anonymity.

Hanu Reddy, ICICI Property Search, Home Bay and Century Realtors are some of the key organised brokers/agents, who have been empanelled to market the 3,493-apartment project.

DLF Southern homes head K K Raman said it is a "limited period offer" that is valid upto May 31. "The market needs stimulus to bounce back and this is just one element in our overall strategy," he told ET.

While 35% of the sales, so far booked, has been through the DSA (direct selling agents) route, he said this percentage is much lower when compared Delhi.

He added that in the last four days, 14 fresh bookings had been made, though he was unable to quantify the DSA contribution.

Historically, DLF is known to have a generous track record as far as commissions are concerned, but unlike other geographies where its relationship with local brokers help it to make sales, it was faced with a different experience in the metro.

"Here, the DSAs have to work much harder because of the market characteristics. For, end-customers have the habit of negotiating with the builders directly," Mr Raman points out.

DLF does not have a strong marketing base in the city and hence its attempt to revise its agent commission is unprecedented. It has caught the attention of the market with industry experts assessing DLF’s total brand spend for a project of this magnitude to be close to Rs 75 crore.

One of the realtors even said there were plans to revise the incentives to 4% on future deals.

For this project, DLF has deployed about 40 realtors, some of whom are overseas. "Their client base and strong linkages with the international customers are factors that our company evaluates to empanel DSAs," Mr Raman said.

Source:http://economictimes.indiatimes.com/Markets/Real-Estate/Now-DLFs-sops-for-realtors-marketing-Chennai-project/articleshow/4222219.cms

Unitech in talks with Oriental Bank to sell office space

NEW DELHI: Real estate firm Unitech is in talks with Oriental Bank of Commerce (OBC) to sell its office building in Saket, New Delhi, said a top company executive.

If the deal materialises, it could fetch Unitech around Rs 500 crore. The company is also simultaneously in talks with 7-8 wealthy individuals to sell floors in that office, in the event of a deal with OBC not working out.

“We are working on two options — either selling the entire building to one buyer or different floors to multiple buyers,” said Unitech MD Sanjay Chandra. The six-floor 2.2 lakh sq ft office, which is almost ready to be occupied, can fetch around Rs 500 crore if sold to one buyer and higher if sold floor-wise to multiple buyers.

“Our aim would be to maximise realisation. But the deal will also depend on how soon we can close it,” said Mr Chandra, adding that the negotiation process with Oriental Bank of Commerce has been initiated.

Unitech, which has a total debt of Rs 10,000 crore on its balance sheet, has been looking to raise fresh funds through sale of its assets to repay debt and cover for its operational expenditure. Besides its Saket office, Unitech is also in the process of selling its mid-segment hotel in Gurgaon.

It is understood that the company has entered into an agreement with a wealthy individual Roop Madan, a Delhi-based auto dealer, to sell its hotel for around Rs 230 crore. Unitech has also sell-off some land parcels in Gurgaon lately to raise funds.

These asset sale would help the financially-troubled firm to get fresh capital, but wouldn’t be enough to sail it through the tough times. That’s why the company is also looking at diluting stake to private equity funds at project as well as company level to raise fresh funds. “We expect to raise around $500 million through private equity deals at company as well project level,” said Mr Chandra.

“We are talking to 6-7 real estate funds to raise capital for our mid-income residential housing projects in the national capital region and in Mumbai,” said Mr Chandra.

Soruce:http://economictimes.indiatimes.com/

Big ticket land deal in offing in Chennai Boat club road

CHENNAI: A big ticket land deal is underway in the posh Boat Club road of Chennai. It is a land parcel of 31.9 grounds, owned by the TVS-group firms. The price expected is Rs 6 crore per ground (1 ground = 2,400 sq ft), multiple sources in realty circles confirmed to ET.

It is learnt the lands are owned by TVS Motor, TVS Electronics, TVS Investments and other associate firms, managed by brothers Venu Srinivasan and Gopal Srinivasan. The deal is directly handled by the officials of the companies though leading realty consultants were keen to get the mandate.

Group sources did not want to comment on the deal. It is learnt that Gopal Srinivasan is directly handling it by banking on his contacts in Chennai business circles. The process of sale began about three weeks back, when the elite circle of the metro’s hi-profile buyers were intimated about it. Of the 40-odd parties sounded, 8 to 9 have evinced interest, sources said.

To facilitate easy transfer of the corporate ownership of the lands in the primary residential area, it has been split into five plots. It is also viewed as a strategy to woo high-networth individuals given the fact that the real estate prices are perceived to be heading south, sources say. The plot sizes of the ‘L’ shaped property range from 4 to 10.5 grounds.

All the same, TVS firms are also keeping the option of going in for a block deal, if they get a good offer. In value terms, the deal would set a new benchmark in Boat Club as this is rated as a big ticket one compared to the last few deals clinched between 2005 and 2007.

Earlier, two deals (Rs 42 crore and Rs 80 crore) were struck by the Maran brothers, while Mukesh Ambani’s brother-in-law Shyam Kothari bought 2.4 acres in 2007 at Rs 175 crore. The last high-value transaction in Boat Club was concluded at Rs 5 crore per ground.

It is gleaned from sources, the TVS deal has attracted about eight interested parties, which include some influential businessmen and high networth individuals.

It is being marketed as a ‘vaastu’ compliant site. The other special feature mentions is the largest open space available in the area with exclusive private access away from the main road.

Lease rentals in the upmarket location range between Rs 80,000 to Rs 2.50 lakh per month depending on the size of the houses/flats.

As part of the efforts to abide the regulations of the Adyar Owners’ Association, the interested parties are told the plots have to be developed only as residential houses.

They can construct not more than two residential units and not less than 4,800 sq ft built-up area in each plot. With a ground plus one dwelling format, each plot has provisions for garage and servant quarters, which would be an integral part of the residence.

Though some of the prospective buyers whom ET spoke said the maximum price one ground would fetch is Rs 4 crore, a veteran builder, residing in Boat Club, says "the strategy of selling in small pieces may get them buyers."

For long, this land belonged to Binny Mills. As part of its revival plan, it was sold to Som Dutt Builders for Rs 60 lakh/ground in the late nineties.

Later, in the early part of the decade, 45 grounds were acquired by the firms managed by brothers Venu Srinivasan and Gopal Srinivasan, for a consideration of Rs 41 crore. After retaining a portion for themselves, 31.9 grouns is now up for sale.

Source:http://economictimes.indiatimes.com/Markets/Real-Estate/Big-ticket-land-deal-in-offing-in-Chennai-Boat-club-road/articleshow/4210785.cms