L&T Realty puts 3 properties in Chandigarh on the block
Sep 06, 2013
Source : The Economic Times


DELHI: L&T Realty has put its 1.15-million sq ft mall, a 400,000-sq ft office building, and its under-construction Hyatt Regency hotel in Chandigarh on the block, signalling its intent to exit non-core businesses, said three people with direct knowledge of the development.

The company is looking at a valuation of around Rs 1,200-1,400 crore for the three assets, says a property consultant who is helping the company with the sale.

"They are realising that it is not their core competence and are planning to exit these businesses," said a top executive of a prominent mall chain in Mumbai that is currently in talks with the company to buy the mall. "This is more of a strategic decision," he added. Two senior executives of New Delhi-based mall developers also said L&T Realty has approached them with sellout plans for their mall in Chandigarh.

Spread over 20 acres, the Elante project has been their flagship venture with 1.15 million sq ft of mall space, an office building and a hotel. An L&T spokesperson said the company does not comment on market speculations, but claimed that the Elante mall "has been an outstanding success".

The three top mall developers quoted above agree that the Elante mall, launched barely six months earlier, has already gained popularity in Chandigarh, a city with good discretionary spending. The mall is almost fully leased and boasts of one of the best mix of local and international retailers, including Big Bazaar, Pantaloons, Shoppers Stop, Zara, Mango, Marks & Spencer, among dozens of other prominent brands.

One mall operator based in Delhi who has been doing due diligence on the property says one problem with the mall is that all the stores are leased for nine years with only room for 5% annual hikes and "that makes it a little bit less attractive as against the current norm of revenue-sharing".

The revenue-sharing model has been a hit in India where both mall owners and retailers see each other as partners in growing businesses and not mere tenants. In that model, retailers generally part with a small to significant portion of their revenues to their landlords.

"In a revenue share model, we also benefit from growing consumerism in India and we will take the upside. At Elante, the rentals are fixed for nine years, so there is no upside for us," said a senior executive of the Delhi mall developer quoted above. "Otherwise the mall is excellent and up to international standards. The fixed rentals are the only mistake they have made," she added.

Latest Realty News

DDA to offer service apartments on minimum 2,000 sq mt plot
Sep 06, 2013
DELHI: Aiming at addressing housing requirements in the capital, Delhi Development Authority (DDA) has decided to offer service apartments which will be introduced on a minimum plot size of 2,000 sq mt, officials said.
RBI prohibits banks from giving 80:20 upfront home loan
Sep 05, 2013
DELHI: It has been observed that some banks have introduced certain innovative Housing Loan Schemes in association with developers/builders, e.g. upfront disbursal of sanctioned individual housing loans to the builders without linking the disbursals to various stages of construction of housing project, interest/EMI on the housing loan availed of by the individual borrower being serviced by the builders during the construction period/specified period, etc. This might include signing of tripartite
RBI should allow flexibility in housing loan schemes: CBRE
Sep 05, 2013
New Delhi: Anshuman Magazine, Chairman & MD, CBRE South Asia Pvt. Ltd. says, “The RBI’s decision to disallow banks from granting loans for under-construction projects through innovative schemes will adversely affect the sale of projects where such schemes were prevalent. No doubt banks should do their due diligence and assess risks before agreeing to fund these schemes. However they should be allowed the flexibility of such schemes which encourages more people to own homes.”
RBI move may spoil the party for realty players
Sep 05, 2013
DELHI: The slowdown-hit realty players had found a sweet spot in the 80:20 scheme for home buyers. But the Reserve Bank of India’s move to bar banks from giving upfront loans for under-construction projects through such schemes may have disastrous consequences, developers say.
Property fraud cases to now get solved easily
Sep 04, 2013
NOIDA: From now on, cases of forgery related to registration of land and property in Gautam Budh Nagar can be resolved at the department of stamps and registration in Noida. Earlier, complainants had to move various courts to adjudicate these matters, which often stretched on for several years owing to pendency of cases.
Realtors get notice for flouting groundwater ban
Sep 04, 2013
NOIDA: Officials of Noida Authority on Monday held a meeting with realtors to decide the course of action in the cases filed in the National Green Tribunal (NGT) regarding construction around Okhla Bird Sanctuary and extraction of groundwater at various sites.
CCEA clears 2 proposals for housing for the poor
Sep 04, 2013
DELHI: Government today cleared two proposals for providing affordable housing to the urban poor and provide them with self-employment and skilled wage employment opportunities to help reduce poverty.
Delhi Master Plan-2021 will unlock a new wave of urbanization
Sep 03, 2013
DELHI: Delhi may soon see a flurry of real estate activities. A path-breaking policy, which has been incorporated in Delhi Master Plan-2021, will make available around 21,000 hectares of land for residential purposes and around 2,073 hectare for commercial activities in the periphery of the existing city.
Slowdown in real estate forces builders to cut prices
Sep 03, 2013
DELHI: There are no takers for close to 6 lakh homes in the country, forcing builders to cut prices and dole out freebies, which many hope will herald the much-awaited correction in the home market ahead of the festival season.
Seer Acquisitions global consultants unveils its India operation with Seer Realty
Sep 03, 2013
DELHI: One of the prominent boutique property investment consultancy firms in and around London ‘Seer Acquisitions’ unveils its India Operation with -“Seer Realty” today at Dome Hall, Vivanta by Taj Ambassador.

Latest Realty News Of State

Realty Talk's