Sealing spurts commercial rentals

The sealing drive has been a boon for some as retail rentals on the periphery and satellite towns of the capital spiral upwards, claims S. Satyanarayan

The sealing drive started by the Municipal Corporation of Delhi (MCD) of commercial establishments in residential colonies of Delhi has led to spurt in the rentals of legal commercial properties in the National Capital as well as in satellite towns and offshoot cities.

In the last six months, ever since the sealing drive has begun, the rentals for legal commercial space have increased anywhere between 40 to 75 per cent and the realtors believe that there will be further hardening of rentals in the months to come.

Malls in Delhi, which had received a poor response about a year back, are doing brisk business with increased demand for retail space.

The commercial space in Delhi, which had a rental tag between Rs 125 to Rs 140 per square feet, is now commanding a rental of between Rs 200 and Rs 225.

Gurgaon in Haryana and Ghaziabad in Uttar Pradesh, which are in Delhi's proximity, have also witnessed surge in the rentals of commercial space. There has been about 60 to 70 per cent increase in the rentals in these areas, where rentals were just Rs 70 to Rs 90 per square feet a few months ago.

“About six months back people were not very serious about sealing as they felt that some solution will be found by the Delhi Government. But now sealing has become a serious issue and people are in a hurry to relocate. This has had a direct impact on the commercial space available in Delhi and in its vicinity," said Mr Sunil Jindal, Director of SVP Group, which is developing 'The Opulent' Mall in Ghaziabad.

“In Ghaziabad, the commercial space, which had commanded Rs 120 per square feet as rentals just a few months back, is now commanding at least Rs 145 per Square Feet," Mr Jindal said, asserting that this upward trend would continue in the months to come.

“To relocate a business from Delhi to other towns in the vicinity is not an easy decision to make. But forced by the sealing and the opportunities available in satellite and offshoot towns have resulted in Delhi traders looking for commercial space in Ghaziabad, Gurgaon, etc.," he said.

Meanwhile, real estate watchers warn that there could be artificial spurt in rentals in some of the Grade B areas in Delhi and its vicinity.

“Since the rentals are already high in well connected and reputed commercial hubs in Delhi and the sealing has seen further hardening of rentals, there is a constant increase in demand for rental commercial space in satellite towns and cities leading to spurt in rentals there too. However, there could be a mismatch between the rentals and the facilities available as realtors are pricing their products purely based on the demands without any value addition," general manager (marketing) of one of the prominent estate developers said on the condition of anonymity.

However, Mr Nitesh Kumar, director, TDI, does not seem to agree with others.

According to him, factors responsible for rise in price of residential and commercial have nothing to do with the sealing. Prices in Delhi and adjoining areas have been continuously increasing in the last couple of years.

The consistent upward movement is driven by factors such as easy availability of institutional finance at low rates of interest and growth of the upwardly mobile nuclear middle class population and double-digit earning families," said Mr Kumar.

Drive to jack up office rentals, says C&W report

The sealing of unauthorised commercial establishments by Municipal Corporation of Delhi (MCD) will lead to a partial increase in office rentals given the demand for legitimate space.

“Rentals for office space have increased by 90-120 per cent over the last one year in prime locations and the sealing issue which has been in the public domain for the last six months did not contribute the whole of it,” Cushman and Wakefield (C&W) Joint Managing Director Sanjay Verma told PTI.

He ruled out any substantial rise in office rentals due to MCD’s sealing drive, even though it might partially influence prices in the coming days.

On the impact of sealing drive on retail space, Verma said: “The demand for retail space in the upcoming malls has increased and rental values have gone northward.” The scarcity of alternate retail locations coupled with the growing demand for premium retail space has increased the prices by approximately 60-100 per cent within NCR in last one year, he added.

C&W, in its latest report, said that the drive against unauthorised usage and development has put further pressure on already soaring values of office space.

Office rentals have increased by 35 to 120 per cent in the last one year in Delhi-NCR markets and stood at Rs 42-187 per sq ft per month.

"Rates across markets have risen due to the commencement of the metro rail network in certain locations and the plans to connect other destination within Delhi," C&W said.

The MCD's eviction drive has created further pressure on availability of legitimate office space in and around Delhi, given the limited availability.

On the outlook for October-December period for office space, C&W said that lease rentals and capital values are expected to further strengthen across all markets in Delhi and the rise would also affect suburban locations like Noida and Gurgaon as well.

In Central Business District, Connaught Place and surrounding locations, office rentals have gone up by 90 to 120 per cent and stood at Rs 150-187 per sq ft per month. The vacancy rate in this area is 2 per cent.

In South Delhi, including prime and micro-markets, the rentals have escalated by 65 to 80 per cent in South Delhi during last one year and stood at Rs 108-163 per sq ft per month.

"Availability of authorised office space in South Delhi micro-markets is equally inadequate. With most of the space already leased out, the vacancy rate is close to 3 to 4 per cent," it said.

Office rentals have gone up by 79 per cent in Gurgaon-Prime at Rs 64 per sq ft per month. In Noida-Prime, the rentals stood at Rs 42 per sq ft per month, up by 35 per cent from last year.

In last three months, the office rentals have increased in Delhi-NCR markets by 6 to 20 per cent. — PTI

Noida to have a Connaught Place too
Parminder Singh

Real estate developers Omaxe have decided to build a ‘Connaught Place’ in Greater Noida in UP.

Speaking to The Tribune, Mr Rohtas Goel, CMD, Omaxe, said he decided to name the new project as Connaught Place because it had been the commercial hub of the Capital and synonymous with commercial power centre of Delhi.

“We wanted to create another such power centre at a place other than the capital. For this, we have bought a largest chunk of land in Greater Noida,” he added.

About the design of the new Connaught Place at Greater Noida, he said the initial design was quite similar to that of the original Connaught Place. But, then it was found unsatisfactory from the Vaastu angle, so it was rejected. Then the lay-out and construction plan was also changed. Nevertheless a few features were still retained which bear close resemblance to the original CP like the corridors and pillar etc.

The major departure from the original design would be in shape as the new Connaught Place in Greater Noida would be square in shape, against the circular Connaught Place of New Delhi, with all its four sides open.

The new CP has been designed by architect Hafees Contractor. The construction of the new Omaxe CP is being handled by L&T. The business centre at Sector Beta 2, Greater Noida, would be spread across a total built-up area of 1.9 million sq ft. The place is going to have five-star hotel and a shopping mall in which Reliance Industries has a major presence in the form of retail hypermarket stores.

The Omaxe CP will have some leading global brands in lifestyle stores, food and beverage outlets, banks, insurance companies, fitness centres and gyms, among others. It will house a mega eight-screen multiplex and have provisions for new-age offices as well.

Omaxe is also developing a township of 500 acres in Jaipur, projects in Dera Bassi and Ludhiana in Punjab, Sonepat, Rohtak, Faridabad and Palwal in Haryana and Agra and Lucknow in UP among others, Mr Goel added.

India sees highest retail rental growth in Asia-Pacific: study

A booming real estate market and a sharp surge in consumer spending levels have seen India emerge as the biggest gainer in Asia Pacific in terms of rise in retail rentals, a new study reflects.

The country’s prime shopping locations rentals have witnessed a jump of 111.5 per cent over the past one year, while making India home to the world’s 24th most expensive shopping locations, global real estate consultancy firm Cushman & Wakefield (C&W) said in a report.

India has moved up 17 positions from its 41th rank last year, while emerging as the highest gainer among all the cities worldwide, C&W’s annual report on global retail rents - Main Streets Across the World 2006 - shows.

The jump of 17 places made India the biggest gainer in the ranking of world’s most expensive shopping locations in terms of retail rents.

Khan Market, an upmarket shopping street in the national capital, has become the costliest location within the country with a 75 per cent jump, while New Delhi’s another elite shopping location, South Extension has recorded a jump of 111.5 per cent.

“With branded players looking for quality space and high convertible footfalls, demand for the preferred high street locations like Khan market, South Extension in Delhi and Linking Road in Mumbai, has increased,” Sanjay Dutt of C&W said.

He said these locations would continue to command relatively higher prices due to inadequate space availability to cater to the increased demand.

The rental of Khan market stood at Rs 700 per sq ft per month in second quarter of 2006, while rentals at New York’s 5th Avenue, which retained its top position worldwide, stood at $ 1,350 per sq ft per year.

The rankings are based on rental rates in the world’s top 233 shopping locations across 47 countries.

Among other locations, Greater Kailash-I recorded 110 per cent jump in rentals, Connaught Place gained 100 per cent, Mumbai’s Linking Road saw a rise of 57.9 per cent and rentals at Bangalore’s Indiranagar moved up 90 per cent.

C&W said that Mumbai, which had last year shown signs of stabilising, also witnessed increased rental growth.

The rentals at Colaba were up by 36.4 per cent. “The retail revolution in the city is now reckoned to have entered a second phase with expansion in the organized retailing sector,” the report said.

Indiranagar in Bangalore has emerged as an upcoming retail location with rents reaching Rs 115 per sq ft per month from Rs 60 last year.

The consultant sees high street locations continuing to be viewed favourably by retailers despite the rapid growth in mall development.

“Currently, high streets are going through repositioning and with fresh supply being added through mall and other modern retail channels, hi-streets will witness realignment in prices,” C&W said.

The consultant estimates that over the next three years an additional 51.5 million sq ft of space would be added by way of malls, multiplexes, modern retail channels in Tier I, II and III cities. — PTI

HUDA to add more amenities in Gurgaon markets
Ravi S.Singh

The Haryana Urban Development Authority (HUDA) has decided to give a face lift to the markets in its sectors and provide more civic amenities in the markets to make them more holistic. This is expected to further push to the rates of land prices in HUDA sectors.

Presently, there are developed markets in 23 out of 57 sectors of HUDA. The sectors in which developed markets exist are 4, 5, 7, 7 Ext, 9, 10, 10-A, 12A, 14, 15 (1), 15 (II), 17, 18, 21, 22, 23, 29, 31, 32, 40, 45, 46, 55 and 56. Many of them are found wanting on account of fast paced modernisation in other parts of the city.

According to HUDA, public utilities like laying of dustbins, setting up of toilets and drinking water facilities as well as taxi stands will be undertaken on BOT (Build, Operate and Transfer) basis. In effect, these projects will be given to private parties even for their maintenance later.

Also, ‘rehri’ markets will be set up for a cluster of two or three adjoining sectors. Fruit and vegetable shops as well as milk booths will be set up in the markets of all sectors.

The icing on the cake, however, is the plan to set up multi-level parking complexes in those sectors which have the space to construct these complexes. In fact, the local office of HUDA had sent a proposal to the headquarters identifying some sectors in which multi-level parking zone could be created. The headquarters has already given a go ahead for multi-level parking complex in Sectors 24 and 25.

Also, HUDA has decided to set up banquet halls, Malls, restaurants in many sectors, depending on the space. The Administrator, HUDA, Gurgaon circle, Mr S.P. Gupta, even claimed that if there was no space, it will be created for these utilities.

Besides adding public utilities and infrastructures in the existing markets, HUDA has already prepared a blue-print to give face-lift to the sectors and their markets. To this effect; it has decided to set up sign boards at the entry and exit points of the sectors. Also, there would be a lay-out plan as well a signage boards in the markets providing guidance and road maps to the visitors to the markets. Proper lighting of the markets, where there was need, would be provided during the face-lift and beautification plan.

However, with all good vibes being emitted by HUDA, the big question is on their effectiveness against encroachments in the markets in its sectors. In the past 10 years all Administrators, HUDA, Gurgaon, including the present incumbent, had been claiming from the roof tops they had got the encroachments removed. But according to their past experience, the department launches a drive against encroachments in varying degree intensity and all come to an abrupt end. Also, there appears to be bias in selection for action during the drives.

The general perception is that the officials of the department are in league with the shopowners. It is due to this the encroachments take place and are perpetuated with their collusion in the crime. Each time the authorities are pointed out about the encroachments, they say that they would get a survey done. But nothing ever comes out of it. Take the example of one of the busiest market of Sector 14.While there are large number of encroachments, the one by the Om Sweet shop stands out. Significantly, the encroachments are there for several years now. The encroachments prohibit movement of the visitorss, especially females. However, Mr S.P.Gupta says that the department will spare no one and encroachments will be soon removed from the markets.

TAX tips
Major borrower can get more rebate on home loan
By S.C. Vasudeva

Q. My wife and I own a plot. We want to construct it by taking a loan from a bank. We both are Punjab Government employees. We both want to take tax benefits from the interest paid and the principal paid. How should we proceed? Should we pay instalments from our own accounts with different cheques or from joint account? Can I claim more benefit than my wife? Please elaborate.

J.S. Malhi, Amritsar

A. It is not evident from your query whether the funds for the purchase of the plot were contributed by both of you or the plot has been registered in both names but the funds were contributed by you only. The reply to your query is based on the presumption that both of you have contributed equally towards the purchase of the plot and one half share of the plot is owned by each one of you.

The benefit of interest payable on loan borrowed for the construction of the house can be taken if both of you are borrowers and the repayment in respect of principal and payment towards of interest is made by each one of you separately from own sources.

In case you want to avail higher benefit you can do so provided the borrowing in your case is of larger amount as compared to your wife’s borrowing. This is because deduction under Section 24 as well as under Section 80C of the Act is allowable with reference to the amount of interest paid/payable and the amount repaid towards the principal amount by an owner of the property.

LTCG can’t be adjusted against LTCL

Q. I have earned a capital gain of Rs.2 lakhs in October 2006 of long-term capital gain (LTCG) on the sale of shares. These shares were sold through National Stock Exchange and Securities Transaction Tax has been paid thereon. I have a brought forward long-term capital loss (LTCL) on the sale of an immovable property. This is seventh year of its carry forward. Is it possible to adjust the long-term capital gain earned on the sale of immovable property?

T.P. Srivastava

A. In view of the provisions of Section 10(38) of the Act, if the long-term capital gain is in respect of sale of equity shares in a company where the transaction of sale has been carried out after the applicability of the Securities Transactions Tax and such Securities Transactions Tax has been charged thereon, the long-term capital gain on sale of such shares would be exempt from income-tax. It is presumed that the conditions referred to herein above are fulfilled in your case. If so, such capital gain being exempt from tax cannot be adjusted against long-term capital loss referred to in your query.

Tax on agri land

Q. I have some ancestral agricultural land, which I proposed to sell before March 2007. I expect to earn a capital gain of about Rs 20 lakh thereon. What would be the position of its taxability?

Arjun Dev, Mohali

A. You have not given the particulars of your agricultural land and it is therefore not possible to ascertain whether agricultural land is situated within the specified distance of the Municipal Corporation/ Municipal Committee/ Cantonment Board. The notification issued by the Government in this regard will have to be exempted to ascertain the coverage of the agricultural land within the definition of the term capital asset. Presuming that the same is covered within the definition of a capital asset, the capital gain on the sale of agricultural land will be a long-term capital gain and will have to be computed after ascertaining the cost of acquisition of land. In case the land was acquired before 1.4.1981, the fair value as on 1.4.1981 will to be taken being the base year provided by the Act for the purposes of indexation of the cost. The fair value as on 1.4.1981 will be indexed for the purpose of ascertaining the indexed cost as on the date of sale, which shall be deductible from the sale price of the agricultural land so as to compute the capital gain. The capital gain would be taxable @ 20 per cent plus education cess of 2 per cent.

In case the capital gain on the basis of such computation is more than Rs 10 lakh a surcharge on Income-tax @ 10 per cent will also be payable.

Tax on inherited property

Q. I have inherited a house property in New Delhi, along with my sisters. My father had acquired the house property and he had desired that property should be inherited by three of us in the following ratio:

50 per cent to myself

25 per cent to each of my sisters

My sisters have agreed that the inherited property should be shared in the aforesaid ratio. You please let me know if there is any tax implications in respect of such a decision.

H.S. Sinha, Phagwara

A. In accordance with the provisions of Hindu Succession Act, all three of you are equal co-owners of the property inherited by your father. Any relinquishment of the share in a property amounts to a transfer in accordance with the provisions of Section 2(47) of the Act. According the said word “transfer” in relation to a capital asset includes –

“(i) The sale, exchange or relinquishment of the asset; or

The extinguishment of any rights therein; or

The compulsory acquisition thereof under any law; or

In a case where the asset is converted by the owner thereof into, or is treated by him as, stock-in-trade of a business carried on by him, such conversion or treatment; or

(iv) the maturity or redemption of a zero coupon bond; or

Any transaction involving the allowing of the possession of any immovable property to be taken or retained in part performance of a contract of the nature referred to in Section 53A of the Transfer of Property Act, 1882 (4 of 1882); or

Any transaction (whether by way of becoming a member of, or acquiring shares in, a co-operative society, company or other association of persons or by way of any agreement or any arrangement or in any other manner whatsoever), which has the effect of transferring, or enabling the enjoyment of, any immovable property.

Explanation – for the purposes of sub-clauses (v) and (vi), “immovable property” shall have the same meaning as in clause (d) of Section 269UA.”

As would be observed from the definition the word “relinquishment” is covered within the first limb of the above definition. The relinquishment takes place when the owner withdraws himself from the property and abandons his rights thereto which is nothing but a transfer as per the above definition. Accordingly, any relinquishment of the right by your sisters can be termed as a transfer, which may create a difficulty for the purpose of taxability of capital gains in the hands of the legal heirs. This reply is based on the presumption that the desire has not been expressed by the father in the form of a will or a document of similar type.

Income tax calculation

Q. Kindly advise me as to how I should calculate my income tax for F.Y. 2005-06 and A.Y. 2006-07 on following income during 2005-06.

B.S. Kapoor, Manali

A. The total income on the basis of figures given by you would work out at Rs 1,98,889. The taxable income would work out at Rs ,68,889 (Rs1,98,889 – Rs 30,000). This is based on the presumption that no house tax has been paid by you, deduction under Section 24 of the Income-tax Act 1961 (the Act) is allowable @ 30 per cent of Rs 48,000 and further that interest on the NSC is for the year for which income has been computed. The agricultural income has also been presumed to be net agricultural income for the purposes of giving this reply. The tax payable by you would be computed as under:

Encroachment by land mafia on rise
S.P. Sharma

Encroachers have not spared even graveyards in Jammu.

Samsung acquires 80 acres in Sripurumbudur SEZ
Arup Chanda

The Tamil Nadu Government is wooing large multi-nationals inviting them to invest in its SEZ at Sripurumbudur, 70 km from here.

Auto giant Santro already has a huge manufacturing facility there. It has asked for more land as it wants to increase its production. Electronics giant Samsung has also asked for 80 acres of land from the state government to set-up a manufacturing facility in which it will invest $ 100 million.

Out of the 80 acres, 50 will be in the domestic tariff area while 30 acres will be in the SEZ from where colour TV sets will be exported. After Noida, the SEZ Sriperumbudur will be the second in India.

An MoU was signed last week by Tamil Nadu Industries Secretary Shakti Kanta Das and the Samsung president and CEO.

“Samsung has a production facility in Noida, near Delhi. The Sriperumbudur facility will be Samsung’s biggest facility in the region and be a hub for its products for export to the Middle East and African and SAARC countries,” said R Zutshi, Samsung India’s deputy managing director.

The project aims to provide employment to about 4,000 people and will begin production by 2007.

Mr Zutshi, said Samsung would be investing $70 million in the first phase, covering a period of three years from 2006 to 2009. In this phase, the company plans to set up manufacturing facilities for colour televisions, colour monitors, refrigerators, air conditioners, washing machines, printers and other technology products.

Steel your structures for longevity
Shveta Pathak

The coming years are expected to witness extensive usage of steel in Indian architecture. The pace of growth in steel-based structures, that have been gaining popularity in the last four-five years in the country, is much slower in comparison to worldwide trends, say experts.

Considering the benefits like durability, cost effectiveness etc, even the government is taking a keen interest in promoting usage of steel in buildings being constructed in the country.

“Not only are they more durable, safer, they are also economical and even save on labour. Globally, the usage of steel in structures is much higher in comparison to what Indian architectural trends are following. However, keeping their benefits in mind that we are keen on promoting steel usage in architecture,” said Mr Kumar Arvind Singal, joint secretary, Ministry of Steel.

In terms of cost, it reduces significantly in case of high-rise buildings. “People are gradually becoming aware of this. It is not just high-rise buildings but beyond, say in a five-storey building, that the cost factor comes into play. Plus, they are a lot cleaner to construct and last much longer,” says Ludhiana-based architect Mr Sanjay Goel.

No wonder, many recent malls in the country are extensively using steel. “A large number of upcoming ones are using steel since most of them hire international experts to the job. However, this growth could have been much faster. Even now there is a need to generate more awareness on this front.”

The Institute of Steel Development and Growth is now planning to hold a world summit for architects and experts in construction in India soon. “We plan to hold a world summit here and it would focus on usage of steel in structures. A strong need to change the mindset for adopting this relatively newer method is being felt which is why we want engineers, architects and others to come forward and give it a serious thought. Even India should be able to avail of the benefits these structures give, particularly when growth in construction on an all time high,” said Mr Singal.

Ansals to invest Rs 2,000 cr

Real estate firm Ansal Housing and Construction Ltd (AHCL) plans to invest Rs 2,000 crore in the next four years to develop various projects, which include seven townships in Tier II cities.

“We plan to develop seven residential townships in Tier-II cities. Besides, two malls are coming up in Meerut (Uttar Pradesh) and Himachal Pradesh and an IT park in Bangalore. We will invest Rs 2,000 crore in the next 3-4 years in these projects,” company’s Director Kushagr Ansal said.

The company has plans to launch 12-13 townships in next one year, he said, adding seven have already been identified, which would come up in Agra, Indore, Jammu, Kurushetra, Rewari and two in Karnal spread over 60-130 acres.

About 1,500 acres of land has already been acquired for developing these projects, Ansal said. He, however, declined to comment on where the company intends to develop the remaining 5-6 townships.

“We are focussing on developing townships because there is lack of developed residential space in Tier II cities and we see a lot of growth in this segment,” he said.

Its turnover rose by 63 per cent at Rs 48 crore for the quarter ended September 30, 2006, while net profit jumped by more than two fold to touch Rs 9.11 crore, compared to Rs 3.99 crore in the year-ago period.

Mr Ansal said the two malls would have a built up space of 2.5 lakh sq ft each. While the Meerut project would be mostly retail, the Shimla project would have both retail and a hotel. — PTI

REAL TALK
Plan for Chandgarh Capital Region must to check peripheral slums, says developer
Pradeep Sharma

Integrated development of Chandigarh’s periphery was the need of the hour and the Chandigarh Administration, the Punjab and Haryana Governments should sit together and work towards the “Chandgarh Capital Region” to check haphazard urban growth, says Sunil Bandha, realtor and Director of the Zirakpur-based O.N.S. Builders and Promoters.

“With peripheral towns, including Zirakpur, Kharar and Baddi, bursting at seams, a long-term perspective plan for the CCR must be put in place immediately so that the periphery does not emerge as an urbanised slum and a blot on the face of Chandigarh,” Mr Bandha said in an interaction with the Tribune.

For instance, the planned projects of the Chandigarh Administration such as the mass rapid transport system should automatically take into account the needs of the peripheral towns.

Civic amenities, Mr Bandha observes, are the thrust areas and the governments should declare special packages for these towns where the educated middle-class professionals are buying their “dream homes” in the wake of spiraling prices in the Tricity. Planned townships and state-of-the-art apartments should take off the population burden from the Tricity.

Saying that it was only “the survival of the fittest” in the real estate business now, the director said that fly-by-night operators aspiring for quick bucks were a thing of the past. People reposed faith only in those builders and promoters, who fulfilled commitments on quality and timely possession. This, coupled with the awareness created by the media, has spelled doom for unscrupulous builders.

Terming the recession in the property business as a “passing phase” Mr Bandha claimed that Chandigarh’s periphery, particularly strategic towns like Zirakpur, Dera Bassi and Kharar, would continue to catch the fancy of the buyers and investors given these towns’ proximity to the City Beautiful.

*Stability after the the Punjab elections in February 2007 should see the real estate market back on rails by the next financial year, he hoped.

As the land was getting scarce, apartments would rule the roost in the years to come. Nuclear families and a change in mindset are giving a boost to the apartment culture.

The emphasis was on value-added services in the housing projects, the expert asserted.

Good quality housing was still needed in India and the recession does not make much difference to the good housing projects with sound technical and financial backgrounds, Mr Bandha added.

TDI to expand in North India 

Real estate firm TDI has chalked out a major expansion plan for next 3-4 years, which includes development of seven townships in Tier II and Tier III cities in North India, besides foraying into the hospitality sector.

The Delhi-based company is looking to set up about eight hotels in the next 2-3 years.

“With areas like Gurgaon and Noida reaching saturation as far as real estate development is concerned, the neighbouring cities of Sonepat, Agra and Moradabad offer huge opportunities for infrastructure development,” TDI Managing Director Kamal Taneja told PTI.

Over the next 3-4 years, the company plans to develop townships, ranging at Sonepat, Moradabad, Meerut, Agra, Mohali and Panipat, while malls and multiplexes would be constructed in Chandigarh, Agra, Sonepat, Moradabad, Delhi and Jasola.

TDI caters to the mid market segment and the hotels would also be for this category, he said, adding that hotels would also help in catering to increased demand for rooms during the Commonwealth Games in Delhi. — PTI

Ishaan to raise $ 340 million

Riding high on the recent success of pure-play realty biggies in the Indian capital market, another realty firm is taking one step further by aiming to list on London Stock Exchange to raise Rs 1,520 crore ($ 340 million).

Ishaan Real Estate PLC, which is a listed fund with an initial portfolio of eight property assets and would be majority owned by real estate firm K Raheja Corp, is seeking to pool in funds from outside its domicile.

The company aims to raise 340 million dollars, sources said, adding the issue has attracted good interest among Asian investors during the pre-marketing phase.

A couple of investors in Hong Kong and Singapore have already signaled interest in buying about 10 per cent of the available units, they said.

Market wathcers say the company’s move has sparked off excitement as this new route of raising funds from the market allows foreign investors to invest in the listing vehicle.

The Ishaan offer, is jointly arranged by Deutsche Bank and JPMorgan Cazenove. — PTI