New India Entrants


New Entrants

L&T to invest Rs. 8,000 crore in real estate projects

The Financial Express

In a bid to tap the growing demand for residential and commercial projects in India, the Mumbai-based Larsen & Toubro Ltd is planning to invest Rs 8,000 crore in real estate and urban infrastructure over a period of three to five years through its subsidiary L&T Infrastructure Development Project Ltd (L&T-IDPL). The company will focus initially on the southern markets of Chennai, Hyderabad, Vizag, Bangalore and Kochi. HDFC has a 25 percent stake in L&T-IDPL, and would also be contributing to the investment. The projects will be implemented in a phased manner, with each under different special purpose vehicles (SPVs).

Dubai’s Phoenix group lines up Rs.2, 200-crore investments in India

The Economic Times

Dubai-based multinational conglomerate Phoenix Group with interests in hospitality and real estate plans to invest over Rs 2,200 crore in India by 2011. The group’s subsidiary, Phoenix Realty, is looking at an upscale residential project in Goa with an investment of Rs 450 crore. Phoenix Palms, the residential property in Panjim spread over 70 acre, will comprise of 200 villas and 100 apartments. The construction is expected to start early next year. It also plans to open hotels in Bangalore, Kochi, Ahmedabad and Hyderabad by early 2009. The group is in talks with Carlson Hotels Worldwide for launching a 160-room hotel in Whitefield, the IT suburb in Bangalore under the Radisson Plaza brand. Apart from Radisson Hotels & Resorts, Carlson owns several hotel brands like Regent, Country Inns & Suites, Park Inn and Park Plaza, among others. The long-term plans of the group include four-star hotels in Agra and Pune with an investment of over Rs 180 crore each. Five-star hotels with an investment of over Rs 250 crore are being planned in Chennai, Jaipur and Udaipur as well.

Hindujas consolidate realty business

The Economic Times

The Hinduja group has consolidated its real estate assets under one entity and plans to rope in overseas firms for developing over 30 million sq. ft. of property in different parts of the country. Aasia Properties Development, fully owned by the Hindujas, will be the holding company for all the group’s real estate ventures. Its 100 percent subsidiary, Aasia Realty Ventures, will implement all FDI related ventures while Ashok Leyland Properties will focus on development planning, project management and design. Aasia Properties Development owns 88.5 percent of Ashok Leyland Properties while 11.5 percent is held by Ashok Leyland, group companies and individuals. Aasia also owns the 33 percent stake in JW Marriott through Juhu Beach Resorts. It is believed that Gulf Oil and Hinduja TMT will enter into joint development of excess land near their factories and offices with Aasia Properties. The companies and Aasia will jointly own the land, and revenue will be shared. The actual development, property management will be left to Ashok Leyland Properties. The Hinduja group is also looking to rope in overseas property management firms into buying a 20-40 percent stake in Ashok Leyland Properties. Group sources said that two firms are in talks with the group and that a transaction will be concluded in a month’s time.


Tatas map realty foray, to develop land of group companies

The Economic Times

Tata Group plans to develop excess land owned by various group companies through the recently floated $1-billion real estate fund under the Tata Realty and Infrastructure. TCS, the Tata group’s software company, has around 250 acres of excess land spread across Pune and Hyderabad, while consumer goods company Voltas owns 25 acres in Hyderabad. Rallis India also owns 100 acres in the southern city. Although other group companies such as Tata Motors and Tata Tea have excess land bank, details of the same couldn’t be obtained. It is believed that the group wants to develop mixed-use project, commercial, residential and IT parks on the identified lands.

The Tata real estate fund, which is in the process of mobilising $1 billion from domestic and overseas investors, would utilise a major share of the funds for developing land. Tata Sons, the holding company of group will invest $100 million in the fund. The group is also believed to be looking to enhance the size of the fund from the current $1-2 billion. Tata Realty & Infrastructure would also invest in infrastructure and real estate projects, housing complexes, and special economic zones, construction of bridges, ports and airports.

NIHO constructions to invest Rs.1, 000 crore in Gujarat

Business Standard

Niho Construction Ltd, the flagship construction and development company of Delhi-based Krishna Group, is looking to invest around Rs 1,000 crore in Gujarat in the next three years. The company is also aiming to build a land bank of 8-lakh sq.yard in the state. Niho will mostly invest in constructing residential projects like townships, bungalows, apartments and others. The company is already in the land acquisition stage for upcoming township projects in Anand, Jamnagar and Gandhidham. Recently, Niho bought a land in Jamnagar for its Scottish City Centre, a mall-cum-multiplex-cum-hotel that will be built by June 2009.

Niho is gradually moving from Delhi and NCR to other states. Apart from Gujarat, the company will venture into seven other states including Punjab, Haryana, Uttar Pradesh, Rajasthan, Madhya Pradesh, Uttaranchal and Goa. In its aim to be a Pan-India player, the company is expecting to raise its land bank by 15 million sq ft, said Karoul. Presently, Niho has a book value of Rs 2,500 crore for its upcoming projects across the country.

AL Fajer plans India entry with $1 billion joint venture


Dubai-based Al Fajer Properties said it is in talks with two unidentified Indian developers to form a joint venture for an investment of up to $1 billion (Rs 4,100 crore) in Indian real estate. The company said that it plans to develop commercial projects, gated residential communities and townships and has been considering locations in Gurgaon, Hyderabad, Gujarat, Mumbai and Chandigarh. It also wants to create a fund for small investors in India to invest in Dubai properties. The company did not offer any additional details including funding. Al Fajer currently has a portfolio of more than $1.5 billion worth of projects in Dubai.



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