Arvind Mills unveils retail plan with launch of Megamart
Friday, October 26, 2007
Arvind Mills today announced retail plan to reach sales turnover of a billion dollars by 2012.
“The retail space is buzzing and we think the time is perfect for us to announce our retail plans”, says Mr. Sanjay Lalbhai, Chairman and Managing Director Arvind Mills. Adding further Mr. Lalbhai, said, “Our retail expansion will straddle several formats. We would like to be present across the entire spectrum - value retail, to premium retail to luxury retail. Various options for entry into these sectors are being considered. We are ready with our plans for Megamart. This will be our first leg of retail expansion.”
“We pioneered the value retail space with ‘Megamart’. Megamart currently is a 70 Outlet strong network and is available across 25 cities. Now we plan to aggressively expand this concept through the launch of Megamart Outlet Centre which will be 50,000 to 60,000 sq feet large format value stores”. He further adds, “We have already signed up prime properties in Chennai, Pune and Hyderabad for this expansion. These 3 stores will be operational during the course of this financial year”. The first store in Chennai is expected to open in December 2007. The company has an aggressive expansion plans to sign-up several more properties in the coming months. Megamart plans to have up and running 25 to 30 such Megamart Outlet Centres in top 20 cities over the next 4 years.
The Outlet Centre concept operates with the objective of grouping of a large number of brand outlet stores at the same location. An Outlet store, offers their merchandise to consumers at reduced prices. The model offers a wide range of high-quality brand-name goods in a concentrated space at value prices.
The Megamart Outlet Centres will house a select set of brands. Megamart Outlet Centre will bring in a great combination of international shopping experience at value prices along with ambiences at par with some of the best retail chains of the world.
To achieve this, Megamart engaged the services of reputed design house JHP - London; an award winning design consultancy firm to design their stores. JHP has designed and executed several retail projects throughout the world. JHP are the designers behind Selfridges, ASDA and many of the other leading retail destinations across the world, including the retail space of the upcoming Heathrow Terminals.
To provide best service to the customers, Megamart is investing heavily on training the Fashion Assistants who will man the Outlet Centres. The company is also making sizeable investments to support these plans in information technology.
-MoneyControl
Author: Rakesh Malhotra » Comments:
India emerges second-biggest FDI magnet
Wednesday, October 17, 2007
India has emerged as the second most-attractive location after China, ahead of the US and Russia, for global foreign direct investment (FDI) in 2007. According to Unctad’s world investment report, released here on Tuesday, India’s ranking in inward FDI performance index has also improved to 113 in 2006 from 121 in 2005. China is the most preferred investment location, followed by India, the US, the Russian Federation and Brazil, the report said.
The share of India and China in total global FDI outflows has also risen. While both accounted for 10% of total FDI outflows in 2005 in the Asian region, it increased to 25% in 2007. While China’s outflows increased 32% to $16 billion in 2006, Indian outflows witnessed a four-time rise since 2004.
On the increased flow of FDI into India, the report pointed out that while foreign retailers such as Wal-Mart had started to enter the Indian market, a number of US companies such as General Motors and IBM are rapidly expanding their presence in the country. So are several large Japanese MNCs such as Toyota and Nissan. Global FDI inflows soared in 2006 to reach $1,306 billion, showing a growth of 38%.
Commenting on the rising outflow of FDI from the two countries, the report said both China and India are throwing up competition for countries like Hong Kong (China), the Republic of Korea, Singapore and Taiwan as the main sources of FDI in developing Asia.
Interestingly, while India’s outflows have been dominated by privately-owned corporates such as Tata group (Tata-Corus deal), in China FDI outflows are mainly driven by the international expansion of state-owned enterprises due to progressive government policies. Tata Steel acquired Corus Group in early 2007, creating Tata-Corus — the world’s fifth-largest steel maker.
In terms of locational choice for foreign investors, China polled 52% of the respondents in the Unctad survey, followed by India with 41%. The US received support of 36% and Russia 22%, followed by Brazil with 12%. China’s outward FDI stock reached $73 billion in 2006, the sixth-largest in the developing world, according to the report. China’s major chunk of overseas expansion involves considerable investment in other developing and transition economies, the report says.
The emergence of China and India as important sources of FDI, coupled with active M&A activities by investors based in the Asian newly-industrialising economies (NIE), has led to increased FDI flows from Asia to developed countries as well.
India was the fourth-largest recipient of FDI during 2005-06, with China and Hong Kong (China) remaining on top. Singapore was ahead of India at the third position. “India registered a substantial increase in FDI amounting to $17 billion,” the report said. Due to increased investments in India, FDI inflows to south Asia surged 126%, amounting to $22 billion, in 2006.
Labels: FDI in India, Real Estate Investment Fund
Author: Rakesh Malhotra » Comments:
Interest cut by banks lifts realty stocks
Thursday, October 11, 2007
Realty stocks got a boost with the State Bank of India announcing a cut in its rates by 50 to 100 basis points for new loan seekers from the period between now and the year-end. Borrowers with salary account with the bank would get an additional discount on the lower rate. A floating rate cut of 50 basis points by ICICI Bank also gave the additional fillip for the sentiment.
According to Ankur Srivastava, Managing Director, DTZ, a global property consultancy firm, real estate sale picks up during this time of the year, which also marks the festive season. Developers are able to realise better revenues. This move by SBI would bring about positive sentiment about rate-sensitive segment — low and middle income group urban housing — of the real estate sector. This trend of lowering rates is likely to be picked up by others in the banking sector and housing finance companies, industry analysts felt.
The growth of housing loan of smaller denominations slowed in the second quarter of the current financial year, according to bankers.
The prime property market had not been affected by relatively higher rates as its economics run on investment and speculative factors more than the shelter needs, analysts said. Mr Shailesh Kanani, an analyst with Angel Broking, said that SBI’s announcement was a positive development. According to Mr Gul Teckchandani, an independent market analyst, there are quite a few manufacturing companies with strong embedded real-estate play. BSE Realty Index today moved up 2.71 per cent, while the Sensex shot up by 0.84 per cent. In the past one month, the index gained by over 35.61 per cent and in the year-to-date it has returned 88.67 per cent. Among the 14 stocks in the index, only one — Anant Raj Industries, declined. DLF, which is also in the Sensex basket now, improved by 2.92 per cent. Akruti Nirman posted highest gain of 17.97 per cent, followed by Phoenix Mills (9.4 per cent).
-Business Line
Author: Rakesh Malhotra » Comments:
NCR realty prices go down
Monday, September 17, 2007
Rising interest rates have pulled down the property prices in the National Capital Region (NCR) of Gurgaon, Noida, Greater Noida, Indirapuram and Charmswood Village by 10% to 20% in the past 6 months even as the prices have appreciated in the Capital.
And despite the reduced prices in the NCR, there are not many buyers. But this hasn’t forced sellers and builders into slashing the price further.
In many cases, the builders’ price in the primary market is higher than that of secondary market even though dealers have not been able to sell the old stock, says property consultant Abhay Poonia. Worst still is the case of plotted colonies, which have witnessed a sharper decline in their value.
Experts attribute the fall in property prices to the rising interest rates which have pushed up the cost of investment. A senior consultant says investors are wary of taking positions in the real estate market as the return in a short period of one year is almost nil in suburbs.
However, profits in the commercial space have gone up substantially because of huge demand for it. And that’s why investors have turned their attention towards commercial real estates in the past one year. Poonia says the investors are out of the residential sector and are now investing in the commercial sector.
However, those who have already invested in the residential properties, experts say, are holding on to their properties and are not willing to sell them off. "Those who have bought properties have now fixed a price to sell them. But the buyer is not ready to pay that price. So, they are holding on to the properties. It remains to be seen how long they can do so. The day they would start selling, there will be greater fall in property price in Gurgaon," says real estate consultant Sumit Bhaskar.
Experts say that investors are not selling their property at a lower price because they anticipate an appreciation in next one year. And this hope has been fuelled by the fact that the builders are launching their new projects at a higher price than that of the secondary market.
A senior dealer argues that the general perception in the market is that the appreciation in the medium term would be more than the cost of holding the property. Therefore, investors are ready to hold. The confidence also stems from the fact that the property prices in Delhi have been rising in the past six months.
According to global consultants Cushman and Wakefiled, property prices in posh colonies like Greater Kailash, Vasant Vihar and Chanakyapuri have risen by 15% to 30% in the past six months. In other areas like Rohini, Pitampura, Mayur Vihar, Patparganj, the prices have appreciated by around 10%. Therefore, the builders and dealers argue that the prices in the adjoining areas would also appreciate sooner than later.
Their confidence is also boosted by the high demand for commercial space in the NCR, which will create demand for residential space also. According to global consultancy firm DTZ, around 13 million square feet of commercial space will be absorbed in 2007. This will provide working space to around 1.5 lakh employees. Even if a fraction decides to buy residential apartments, a huge demand will be created. A senior builder says this kind of demand is likely to be created year after year for quite some time and this will push up the prices.
President of Gurgaon property dealers association Satis Kataria said that with the city getting Metro connectivity and Manesar coming up, the prices will rise. There is a significant increase in the rental of residential properties. Rental of three-bedroom apartments has increased to Rs 20,000 a month, he said.
Source:TOI
Labels: NCR Properties, NCR Real Estate, Property Rates in NCR
Author: Rakesh Malhotra » Comments:
IL&FS, Milestone open door for realty investment
Monday, September 10, 2007
IL&FS Investment Managers and Milestone Capital Advisors have launched a real estate fund where investors can enter with as low as Rs 10 lakh. IL&FS-Milestone Fund-I is an yield-driven real estate investment fund based on a structure similar to the real estate investment trusts (REIT). Worldwide it is the most popular investment route for corporates and individuals to invest in real estate.
The close-ended scheme will have a term of four years, with an option to extend the term by a year and if required by one more year. The fund is targeting a corpus of Rs 1,000 crore, which includes a greenshoe option of Rs 500 crore. The fund will remain open for subscription till October 30, 2007.
IL&FS-Milestone Fund-I will be the first real estate investment fund in India to offer a low minimum investment commitment of Rs 10 lakh for individuals (in multiples of Rs 5 lakh thereafter) and Rs 1 crore for corporates, with the convenience of draw-down spread over 12 months.
“The fund is especially attractive for individual investors who want to diversify their portfolios without the complication of investing in real estate directly,” Shahzaad Dalal, vice-chairman and managing director IL&FS In-vestment Managers said at a press conference on Monday.
IL&FS-Milestone Fund-I will offer a quarterly yield distribution to investors and property appreciation benefits in the long term. The fund is targeting an annual yield of 11% (pre-tax) and an internal rate of return of 18-20% (pre-tax) with property appreciation.
“With an investment focus on completed properties that are leased for a long-term period to high-quality tenants, the fund does not carry any development risk,” said IL&FS-Milestone Fund managing partner Ved Prakash Arya. He also added that the fund will target greater geographical and sectoral diversification through investing in offices, IT & ITES buildings, hospitals, hotels, warehouses and shopping malls across India.
Individual investors can utilise this as a recurrent income source as well as accrue property appreciation benefits in the long term. The fund employs a conservative investment philosophy and a low-to-moderate leverage strategy.
Labels: Real Estate Investment Fund, Real Estate Investments India, REIT
Author: Rakesh Malhotra » Comments:
Rentals@ Rs 450 a square foot, Mumbai sets record
Wednesday, August 29, 2007
Mumbai's property market has set a new record.
A commercial property was rented out at a whopping Rs 450 per sq foot in the financial hub of Bandra Kurla complex.Forget residential buildings, which are already above a crore for a standard 2-bedroom flat, the office spaces in Mumbai are now costing something next to one in Manhattan.
Corporates are literally struggling to find a reasonable deal. Over the past 9-months, rentals have shot by 40 per cent in the posh Bandra Kurla complex area in Mumbai.
Limitless Group, a sister company of Dubai based developer Nakheel has recently signed a $ 10 billion joint venture with real estate major DLF, to develop townships in Mumbai.
The Dubai based group has already snapped up 12,000 sq feet in the famous IL&FS building in Mumbai, which is now renting out space in the building at Rs 450 per square foot.
The Limitless Group will pay Rs 54 lakh a month for its own office space.
Rents in Bandra Kurla Complex have now crossed the rentals at Nariman Point and Lower Parel areas where they are at Rs 290 - 350 per sq foot.
Sources say this recent deal at IL&FS already has led the builders quoting sky high prices for mediocre properties. Anuj Puri, Chairman & Country Head, JLLM said, “It’s purely because demand is outstripping supply. 12 months ago the prices were at Rs 250 a sq foot, which though seemed high at that point have gone much higher now.”
Recently, the British High Commission pre-leased a space in the under-construction Naman Chambers for Rs 350 per sq foot.
The Fortune 2,000 building and Windsor Plaza are now quoting Rs 330 a sq foot compared to Rs 250 six-months back.
The Bandra Kurla complex has only 3 lakh sq feet of commercial space to offer at the moment. And that is a far cry from the current requirement.
Industry watchers say approximately 2 million sq feet of office space will enter this market in the next 2 years, and that's when corporates could find some respite from the soaring rentals.
Source: ibnlive.com
Labels: mumbai property rates, property in India, real estate india
Author: Rakesh Malhotra » Comments:
Parsvnath Ready to jump into Overseas Realty
Monday, August 20, 2007
Parsvnath Developers Ltd is now planning to enter the international real estate market now by forming offshore development companies in various countries to kick off projects overseas, even as the
real estate in India starts to slow.
The companies would be set up as 100% units of Parsvnath.
The company plans to expand its footprint outside India to countries such as Sri Lanka, Mauritius, Singapore and the UK and in West Asia.
Parsvnath is present in 48 cities in India. While the firm is growing, Mr. Jain of Parsvnathsays that Indian real estate market wasn’t slowing despite showing signs of sluggishness.
The firm will foray into the offshore markets either on its own or through joint ventures with local developers or the government.
Parsvnath has already entered a joint venture with the Oman-based, Al-Hassan Group of Industries to enter the Oman realty market. Parsvnath is looking at developing stand-alone housing projects, retail projects and integrated townships in the offshore markets.
“The international market provides good opportunities as the real estate market there is more transparent. We also feel we will get better technological expertise in these markets,” According to Mr. Jain.
Parsvnath is also looking at bidding for airport modernization and management projects and is in talks with leading global airport operators to jointly bid for projects.
The company plans to tie up with a couple of airport operators. “We are in talks with some players. We are looking at retaining a majority stake in the joint venture,” Jain said.
source: Livemint.com
Labels: Parsvnath Developers, Parsvnath India, real estate india
Author: Rakesh Malhotra » Comments:
