Karnataka HC stops sale of flats at Mallya's luxury Kingfisher Towers
UB Holdings, developing the apartment complex for over two years in a 55:45 joint venture with Bangalore-based publicly-held real estate developer Prestige Estates, has said the high-value residential units in Kingfisher Towers could not be sold, impacting the cash flow
Aug 18, 2014
Source : The Times of India
Vijay Mallaya source: forbesindia.com



UB group Chairman has got another problem to deal with. After razing his ancestral bungalow, housed in an expansive 4.5-acres of prime location in the central business district of Bangalore, Mallya's attempt to unlock value in the land by building the luxury has been stalled. UB Holdings, the UB Group's primary holding company, tangled in a host of legal battles for having given corporate guarantees to lenders of the Group's now-grounded (KFA), has been told by the Karnataka high court to stop the sale of flats.

UB Holdings, developing the apartment complex for over two years in a 55:45 joint venture with Bangalore-based publicly-held real estate developer Prestige Estates, has said the high-value residential units in Kingfisher Towers could not be sold, impacting the cash flow. Beside, has been further hit as it has not been able to lease out rentable commercial office space of 30,606 sq ft, resulting in a potential loss of revenue at the adjacent UB City commercial and retail complex located on the upmarket Vital Mallya Road in Bangalore.

Kingfisher Towers, touted as among the most expensive residential apartment complex in Bangalore, has an asking price of about Rs 30 crore for a flat spread over 8,200 sq ft. With developable area of 1.09 million sq ft, it will have a total of 82 apartments, of which Mallya, along with UB Holdings, will have 40 flats. According to information available, the apartment complex will have five entry points and Mallya will have a separate entry to his apartment, similar to that of his old house. According to industry sources, Mallya will have a penthouse spread over an acre, - similar to the US President's White House.

Mallya, currently in London to chair board meetings of his UB Holdings and his beer company, United Breweries, is contesting almost all the cases filed against his companies, stating lenders have acted in prejudice while recovering their dues to UB Holdings and to Kingfisher Airlines.

On Thursday, UB Holdings reported a 2.7 times growth in net profit to Rs 802 crore for the first quarter of FY15, compared to the year-ago period, aided by an exceptional item of Rs 837 crore. The exceptional item is primarily based on sale of pledged shares of United Spirits by lenders to Kingfisher Airlines. UB Holdings has said it has obtained legal advice that it has a potential claim against lenders for recovery of sale proceeds. "Without prejudice to the rights and contentions of the company in the pending legal proceedings, sale proceeds appropriated by lenders against KFA dues is included under Loans and Advances recoverable from KFA. Profit of Rs 528 crore (net) on sale of aforesaid shares has been included in the exceptional items," UB Holdings said in a regulatory disclosure.

Latest Realty News

Decks cleared for multilevel parking in Sector 29
Aug 18, 2014
HUDA has finished working on the modalities of its proposed multilevel parking project in Sector 29, which will have a capacity to house 1,300 cars
At Greater Noida, UP govt begins work on creation of industrial township
Aug 18, 2014
The government of Uttar Pradesh has signed an agreement with the Delhi-Mumbai Industrial Corridor (DMIC) Development Corporation for the creation of a Special Purpose Vehicle (SPV), which will oversee the creation of an integrated industrial township spread over 750 acres in the Greater Noida region
People protest as apartments delayed, builder cries political plot
Aug 18, 2014
About 100 residents of Panchkula held a protest near the upcoming Ess Vee Apartments in Sector 20 on Sunday, alleging that the builder had not given them possession of apartments although they had paid 90 per cent of the cost
Odisha has seen few takers in premium housing segment: Arup Dasgupta
Aug 18, 2014
Demand for housing in Odisha is passing through a sluggish phase even as shortage of housing stock is huge in the Country when compared to the demand as a whole, says Sri Arup Dasgupta, Regional Manager (Eastern Region), LIC Housing Finance Ltd
Cities With Highest Property Prices: Mumbai Tops The List
Aug 18, 2014
With the rise in urbanization, many people in India now rush towards urban areas to settle down. And as such, property rates in major Indian cities are witnessing sharp rise between June 2012 and May 2014, according to data by real estate firm research firm PropEquity.
Tweaking rules for development
Aug 18, 2014
Struggling to acquire land to set up the new capital as well as industrial corridors and national institutes, the Andhra Pradesh government is mulling fixing a higher cap on acquisitions by private parties.
Green brake on Noida mall, 4 realty projects
Aug 18, 2014
DLF's Mall of India, which is coming up in Noida's Sector 18 and has been billed as the country's largest retail space, and four big-ticket realty projects in Sector 75 have been asked to "stop all construction" till they get a clearance from the National Board for Wildlife
Delhi High Court ruling, budget sops to bring in PE funds to realty market
Aug 16, 2014
A Delhi High Court ruling on gains from compulsorily convertible debentures along with a slew of measures announced in the budget to spur the real estate sector are likely to encourage foreign private equity funds to invest in the country's real estate market,
Pharande Spaces launches township project in Pune
Aug 16, 2014
Real estate firm Pharande Spaces launched a luxury township project -- Puneville -- at Pune in Maharashtra
Donald Trump: 'India's real estate market will pick up'
Aug 16, 2014
In the world of luxury property there are few more famous faces than Donald Trump - the multi-billionaire who built his fortune through New York real estate.

Latest Realty News Of State

Realty Talk's