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Industry News

DLF to invest Rs.3, 500 crore in 2 years


Real estate giant DLF, which is hitting the capital market with the country's largest IPO to raise up to Rs 9,625 crore, plans to invest Rs 3,500 crore in next two years to purchase land and development rights. The company also plans to develop SEZs, infrastructure and enter the hospitality sector in a big way. DLF would be entering the insurance sector by this year-end with Prudential of USA.

Morgan Stanley to buy crescent for $6.5 billion

The Economic Times

Crescent Real Estate, a US investment firm whose portfolio includes commercial and resort residential properties, has agreed to be bought by investment bank Morgan Stanley for $6.5 billion. The Crescent board of trust managers unanimously approved the acquisition and recommended it to shareholders. Morgan Stanley has agreed to pay $22.80 per share, a 12 percent premium of Crescent’s average closing price in the past 30 days. The agreement also includes Morgan Stanley’s assumption of Crescent’s debt of $3.1 billion. The takeover is expected to be concluded at the end of the third quarter. Crescent Real Estate is a real estate investment trust that owns and manages a portfolio of 70 office buildings totaling 27 million Sq. ft. across the United States.

KSL completes $80 mn FCCB issue

The Economic Times

KSL Realty and Infrastructure Ltd, engaged in textile and property businesses, announced that it has raised 80 million dollars (Rs 327 crore) through issue of Foreign Currency Convertible Bonds (FCCBs). The proceeds of the issue would be utilised for the expansion of textile operations in India, KSL said in a statement. The company has launched a real estate development business with major development projects at six locations in India.

Godrej properties to build Bangalore residencies

Business Standard

Godrej Properties, the real estate arm of the Godrej group, has initiated two projects worth Rs 850 crore in Bangalore. The company's Bangalore entry is through Godrej Woodsman Estate, a 2.3 million square feet residential project being built in phases. The project is located on 15 acres about 1 km from Hebbal flyover on the Bellary Road. The land for this project was acquired from Amco Batteries three years ago. Godrej Woodsman Estate encompasses seven towers, each 16 storeys, housing nearly 840 two and three bedroom apartments.

There is more space in Mumbai’s Bandra - Kurla area

The Economic Times

In a decision that will have a significant impact on commercial land availability in Mumbai, the Mumbai Metropolitan Region Development Authority (MMRDA) has doubled the FSI for construction at the Bandra-Kurla business district. The FSI has been increased from 2 to 4 and a

notification to this effect was issued last week. The MMRDA has now invited suggestions from the public. The FSI will have to be purchased and this is expected to help the authority raise close to Rs 25,000 crore. The authority has cleared a new layout plan for the Bandra-Kurla region and the additional FSI is part of this plan. Developers will have to acquire this additional area at market rates, when the new FSI comes into force, mostly by June.

Indiabulls Real Estate to raise Rs.5, 500 crore

The Economic Times

Indiabulls Real Estate, the realty arm of Indiabulls Group, received shareholders' nod to raise up to Rs 5,500 crore from domestic and overseas markets. The fund-raising would be through a variety of measures, including issuing warrants to promoters, overseas listing through ADRs or GDRs, besides international borrowings. According to a special resolution approved by shareholders, the board of Directors has been authorsied to issue warrants to promoters for raising up to Rs 450 crore. The promoters - Sameer Gehlaut, Rajiv Rattan and Saurabh Mittal, who together control 30.68 percent, would be allotted 1.50 crore warrants. These warrants can be converted to an equivalent number of shares at a price of Rs 300 each. Shareholders also gave their nod to another resolution, whereby the Board would issue shares through international offerings in the shape of Global Depository Receipts (GDRs), American Depository Receipts (ADRs) or Foreign Currency Convertible Bonds (FCCBs) for a value up to 600 million dollars (over Rs 2,500 crore). Further, the Board has been authorised to issue specified securities to institutional buyers by way of a qualified institutional placement, for up to Rs 2600 crore.

ETA Star launches Chennai’s Jasmine court project

Hindustan Times

ETA Star, a Dubai-based freehold land developer, has launched its first project in Chennai where it is developing ‘Jasmine Court’ as a residential project offering investors mixed-size apartments. The residential project covers 4.4 acres of landscaped property near the Chennai International Airport, and includes regular upscale township facilities like children’s play area, a swimming pool, and a gymnasium and basketball court.