Vikas Rikhye,Real Estate Blogger

As we are aware that quite a few real estate companies had launched their IPOs in 2007,but major share of the cake was taken by DLF ,who bagged over Rupees 9000 crores.

Now it seems to be turn of Emaar MGF Land, a JV between one of the world’s largest Dubai based real estate group & MGF Group from India.

It is understood that The Motor & Finance Limited (MGF) one of the oldest finance company of India was incorporated in 1930 under the leadership of Shri Ved Prakash Gupta, the founder chairman of the company and under his guidance MGF became a leading Finance company of the country.

While Emaar Properties, Dubai - based Public Joint stock enjoys the reputation of a very successful track record of growth. Emaar Properties had been the Recipient of Best Developer” award in the year2006 in UAE for 2nd consecutive year.

With joining hands together Emaar MGF have acquired land bank of over 12400 acres,Spread over 22cities in 16 states of India. The company is developing properties in Residential, Commercial & Hospitality sectors across India. They have their ongoing commercial projects in over eight major cities in India.In near future, they have identified to get into Healthcare , Education & Infrastructure project as well.

It is understood that Emaar MGF has got the approval from ” Securities and Exchange Board of India” (SEBI) to launch its Initial Public Offering (IPO) This IPO seems to be the 2nd largest IPO in the country as it is expected to raise over 6000 crores. With offloading over Ten crore shares in the market & the share price is expected to be between Rupees 500-600 per share.

Emaar-MGF after bringing largest FDI in Real estate and now with this IPO makes it one of the strongest Real estate companies in India.

Mr. Vikas Rikhye,Real Estate Blogger

Why invest in India ?

The liberalisation in FDI Policy where Foreign investors other than NRIs allowed to invest only in development of integrated townships and settlements either through a wholly owned subsidiary or through a joint venture company in India along with a local partner has made it Foreign investor friendly.

It is an amazing fact that India is the 4th largest economy, in terms of purchasing power parity and Tenth most industrialized economy moreover. Political stability and broad consensus on reforms and also liberal and transparent foreign investment regime has made it a strong investment destination.

A very well developed banking system and vibrant capital market, with National Stock Exchange being the third largest, and Bombay Stock Exchange the fifth largest in terms of number of trades and also a Strong and independent judicial system,brings the comfort level to all concerned.

A strong blend of scientific and technical manpower specially in IT sector ,where over 50000 IT professionals are added each year, has attracted over 255 Fortune 500 companies getting services resulting into a remarkable increase in number of BPOs & call centres.

The massive progress in development of infrastructure can be seen as:

• Over 13,000 Kms of Highways being developed.

• Major advances in telecommunications sector and sharp decline in telecommunications costs.

• For easy commuting Metro -network is on its expansion.

• With opening of Modernized and well equipped Hospitals the progress on health care is remarkably visible.

• Development of Ports ,Shipping upgradation ,operation of cruise terminal and Operation of Dry Port at Mumbai.

With some of the points covered as above, it seems to give an open invitation to Foreign Investors to participate in booming sectors of growth like Roads & express highways , Urban Infrastructure, Ports , Power projects , Telecommunications and many more with Opportunities at glore……..

Mr Vikas Rikhye,Realtor and Real Estate Promoter

The History of Pre launch goes as back as about four years that is late 2004, when the real estate business was about to “Take off’. Some of the masterminded Broker Turned Builders (BTBs)wanted to enter the real estate market as New Players for New Real Estate Project.

Having a basic support of the large client/investor-base & Fellow Broker Network they designed a scheme to raise funds from profit hungry small investors from the market with a very clear objective to generate interest free money to implement the project.

Usually in real estate the word Pre launch means that the Builder/ Promoter has purchased the land on which a project is to be developed (& in some cases, the builder may not have the possession of the land, he might have an agreement to sell/collaborate with the owner of the land).

The promoter/builder offers to sell the property at discounted price (directly or thru Broker net-work) before the formal launch.

It means the following:

• At this stage Regulatory, legal and formal Government approvals are awaited.
• Land title might not be clear.
• Due to some other Legal reason its Formal Launch can not be done

It is also undermined that Builder instead of utilizing his own investment resources, is trying to raise interest free monetary reserve from investors, to pay off the Land owner Govt .fees, Initial infrastructure/construction cost etc.

Many experts feel that there is no wrong as the investor is aware of the risk involved.

In many states pre-launch bookings have been banned to Curb the malpractices by dubious operators. It is also understood that the Promoters /Developers have been banned to release advertisements about projects that do not have necessary approvals.

It is noticed that “Reputed Real estate companies” have never launched any of the luring Pre launch schemes.

The Pre-launch fever started spreading in other part of Northern including prominent towns like Amritsar, Patiala,Luhiana,Japur,Bhewadi,Neemrana,Alwar,Rudharpur and many more are under its grip.

While many of the smart investors made a quick buck at the same time where “Fly by Night Operators “have disappeared or Builder/ Promoter has failed to deliver the project, many of the victims are either running from pillar to post for refund or some accepted it as a bad luck/wrong decision.

Unitech Limited aiming to be Number-1 real estate developer is spreading its wings now to South India. I understand from some sources that very soon M/s Untitech Limited would be announcing its two Joint-venture deals in Chennai and Hyderabad .

The sources add that these JVs would have the main focus on Binny land near Perambur in north Chennai & Shamshadabad around Hyderabad. involving over 1,400 acres of prime land.

The sources also highlight the following:

• Unitech would shortly announce its 50:50 joint venture deal with serial entrepreneur Prasad V Potluri’s PVP Enterprises that owns around 1,300 acres of land bank in Hyderabad’s Shamshadabad region.

• In the next few weeks, Unitech may also unveil, a 55:45 joint venture deal for developing 8.8 million sq ft of residential property on the 70-acre Binny land near Perambur in north Chennai, owned by SSI

• It is believed that development on the Binny land alone involves construction of over 5,000 residential flats, besides retail and commercial space. Even at a reasonably price level of Rs 5,000 per sq ft, the sale proceeds of developing 8.8 million sq ft comes to around Rs 4,400 crore.

• It is understood that the environment clearance has been obtained for the project.

With the information perceived as stated above, “Adds a feather in the cap” of Unitech’s progressive approach towards becoming India’s Number One Real estate developer.

Mr Vikas Rikhye,Realtor and Real Estate Blogger

Mushrooming growth of shopping malls in Gurgaon creates a question mark in the mind about the negative future of the shopping malls in Gurgaon.

In NCR Gurgaon was one of few first Towns to witness the modern trend of Retail selling & Multiplex culture.

The excited youth and fashionable shopper found their destination at MGF Metropolitan & DLF City Centre ,While moderate & price conscious found their place in Big Bazar in Sahara Mall . Stylish day today shopping got attraction at Spencers and specialized fashion shopping found its place in Grand Mall.

DT and PVR Cinemas attracted people from all walks of life. While on one side one could see elite & hi fashion crowd at the same time one could also see escalator-shy rural crowd looking dazed at modern shopping glamour. Making it most happening place.These Malls were attracting crowds not only from Delhi & Noida but also from distant rural areas of Haryana.

While all this was happening a very few noticed that on this prominent MG Road only while one Mall project was abandoned by the builder and other three malls(under construction were put on slow speed for the lack of market Demand.

Not only on MG Road, but shirking market trend was also felt on Golf course Road &NH-8Where proposed shopping malls gave a deserted look.

On Sohna Road the scene is no different as beside one operational mall, where more than 50% shops are still to open. ( despite the fact that this mall has been so called operational for more than 15 months ). Yet another Marriage mall stand complete in isolation awaiting to be occupied.

And to my utter surprise I see still about seven more malls under construction under such a bleak future .

Mall fever is not yet over it is spreading to Rewar,Dharuhera Bhewadi and as remote places as Punahna etc