Real estate

Aug 22, 2008 at 13:33 o\clock

RAHEJAS OFFER FARMERS BUILT-UP AREA IN SEZ TO TACKLE OPPOSITION

by: vprashantkumar   Keywords: residential, flats

In order to contain the opposition from farmers in aggregating lands to launch a Special Economic Zone, Gurgaon based-Raheja Developers Ltd has adopted an unique method. The company gave the farmers, whose land it is acquiring, an option to own around 15240 sq ft built up area for every acre of land given to the project.

  

The developer has already acquired 255 acre of land in Gurgaon and got the SEZ for engineering activities notified. Chairman of the company Navin Raheja said that with the current rental rates going in the area, a farmer will earn around Rs 2 lakh to Rs 3 lakh per month per acre of land. The capital cost of the land, in the area is around Rs 1.5 crore per acre. Raheja said that lease rentals income will increase over a period of time.

  

However, the monthly payment against the lease rentals will start accruing only after the SEZ become functional. Raheja said that entire infrastructure in the zone will be developed in three to five years at an investment of Rs 4,500 crore.

  

With the present model of making farmers a party of the development, the developer has not only able to acquire the land successfully but also it is getting support from the local population for the speedy completion of the project. Raheja said that around 40% of the farmers have chosen for the lease-rental model. The company plans to increase the size of SEZ project and is in talks with land owners.

  

Raheja said unlike the other SEZs in the country, which are facing stiff opposition from the local population and getting delayed, his project is on time. The SEZ has also received approval for authorized operations. Raheja said a number of domestic as well as foreign companies have shown interest in opening their manufacturing units in the SEZ. In fact, this will be the first notified engineering specific SEZ in northern India.

  

He said the investment would be funded through a mix of debt, equity and internal accruals, he said. "We are looking at strategic investors as well, he added." The project is expected to create job opportunities for around 50,000 people and has a potential to generate annual exports of Rs 1,000 crore.

  

Raheja said the expression of interest from the companies has been sought and deadline for submitting the same is September-end. "We are in talks with at least 10 firms which have shown interest in setting up facilities in our SEZ," he said. It has also promised jobs to two person from each family of farmers whose land has been acquired, he added.

                                                                 Courtesy: - TOI dtd: - 21st August 2008

Aug 22, 2008 at 13:31 o\clock

Builders Now Fancy Build-to-Suit

by: vprashantkumar   Keywords: Real, Estate, residential, flats

  In a market that’s facing excess supply over demand, here’s a concept that works for the seller as well as the buyers – it is called the build-to-suit concept.  Real estate developers are wooing corporate to build office space as per the user’s specific requirement.Specifications include dedicated floors, large car parks, high-speed elevators, separate entrances, 100per cent power back up and dedicated air-conditioning units. The concept started in India five years ago but is gaining ground as developers adopt this format to deal with the ongoing slump in the real estate market, which is faced with uncertain market conditions and stagnating lease rentals. “Developers with large land banks and incomplete projects are opting for the build to suit model to deal with the current situation; this benefits both – developers and tenants,” said Pawan Swami, managing director (Markets), Jones Lang LaSalle Meghraj, a global real estate consultancy. The concept works both ways. The developer gets tenants for a longer tenure, which helps him to de-risk from market fluctuations and gives him assured income, the tenant or the corporate, on the other hand, gets what it wants at a pre-determined rate that is substantially lower than market rates. “Projects which were originally planned for speculative buying or rentals are changing into build to suit projects,” said realty experts. “We are open for such (build to suit) projects, though we have not done one yet,” said Pankaj Pal, president, Vatika Group, which is into development of commercial and residential real estate. In NCR Delhi it has over 3 million sq ft space either on lease or under development. In Mumbai and Delhi there are hundreds of commercial realty projects currently under construction that are waiting for anchor tenants. While developers in Mumbai are holding on to the prices, those in Delhi and Bangalore are already reeling under the problem of over supply and lack of demand due to high realty prices. Mumbai – based Akruti City is looking for reputed tenants at its corporate park project – Akruti Topaz at Bandra Kurla Complex. “Slump or no slump there is always a demand for quality projects. Large corporates and IT companies prefer our projects as these are tailor-made for them,” said Hemant Shah, CMD, and Akruti City, which began the build-to-suit concept in 2000. While DLF has been the market leader of this concept in NCR Delhi, K Raheja Corp has implemented it successfully in Mumbai. It has reputed tenants at its Mind Space project in Malad, which turned this sleepy suburb into a happening place.                                                                                          Courtesy: - Hindustan Times dt.21.08.2008