Center Clears Hyderabad Metro Bidding Documents

The Centre gave the green signal to the Rs 12,132-crore Hyderabad Metro Rail Project (HMRP) by clearing documents for bidding and concessional agreements. The tender process for the project can begin now.

The documents were cleared by the Union finance and urban development ministries along with the Planning Commission.

“All the documents have received clearance from the Central government and we are going ahead with the tender process,” said Mr N.V.S. Reddy, managing director of Hyderabad Metro Rail Limited said.

The Centre also cleared documents for viability gap funding

The state government called bids for the project after the Maytas Infra-led consortium failed to achieve financial closure.

Six applicants remain to submit financial bids after the GVK and GMR consortia pulled out of the race.

Transstroy-OJSC,

Tra-nsstroy-CR,

18G-BEML,

Reliance Infrastructure-Reliance Infocomm

Lanco Infratech-OHL Concesiones SL,

Essar-Leighton-Gayatri-VNR,

Soma-Strabag AG (Austria) consortium

Larsen & Toubro.

LRS Scheme Cut Off Date for Applying Extended to 31 December 2010

The government also decided to waive the 10 per cent surcharge penal amount levied for the applications received after January 1, 2009 and reduction of payment of initial amount at the time of the submission of applications.

National Institute of Urban Management in Hyderabad

A National Institute of Urban Management is proposed to be set up in Hyderabad by the end of this year to meet capacity building requirements of urban local bodies across the country.

It is expected to be the premier institute in the country provide training facilities to all the stakeholders of municipalities and corporations.

The institute will also identify the problems and solutions of civic bodies to improve the quality of life of urban residents. The State government, which proposed the establishment of the institute, has allocated 20 acres of prime land in Khanamet village of Serlingampally Mandal for it.

The World Bank, which had sanctioned about Rs.1,670 crore for the Andhra Pradesh Municipal Development Project (APMDP), favoured establishment of the urban institute as it found that many local bodies were unable to utilise funds sanctioned by the World Bank as they lacked expertise to execute the projects.

Welcoming the State government''s initiative, Songsu Choi, Lead Urban Economist of South Asia Region of the World Bank, said that the institute would provide training in a professional way to all the elected representatives and officials. “The institute can also cater to the needs of other States,” he said while speaking to The Hindu on the sidelines of a workshop on the Municipal Development Project organised here on Wednesday.

Pushpa Subrahmanyam, Secretary, Municipal Administration, said funds allocated by the World Bank would be spent on improvement of urban infrastructure, particularly drinking water supply in 13 local bodies.“We have selected these local bodies since they were not sanctioned funds under Jawaharlal Nehru National Urban Renewal Mission. The government has already identified the works and begun the tender process ,” she added.

Hyderabad News.CEWS Integrated Apartment Township Project at Tellapur beside Hyderabad Goes into Construction Phase

The ambitious 6.4 Acre , 400 Apartment Township project, promoted by CEWS Society formed by a group of IT employees from Hyderabad and abroad has moved into construction phase. Nagarjuna Construction Company (NCC) who is the turnkey contractor for the project has initiated site mobilization and construction activities.

The project is spread of 6.4 Acres of flat land, surrounded by greenery except on the northern side where Aparna Group is preparing to launch a township. The Project site is close to Tellpaur HUDA Township. The recently announced Tishman Speyer 100 Acre Township is 1.75km from the CEWS Project. The Project is ideally suited for people working in Gachibowli Financial District and Hitec City areas.

The project was recently approved by HMDA and CEWS is said to be one of the few projects which went ahead and paid the large Approval Fees to HMDA, thus helping the Govt. to get some cash flow during these lean times!

Explaining the Project features, Mr. Ram Kumar of CEWS Society said “The project was founded to meet the price and quality aspirations of software and management professionals in leading companies in Hyderabad and abroad. The existing projects which offered top quality and best range of amenities were found to be unaffordable by our members. Hence CEWS project concept was borne which brings low cost with very high quality.”

“The project consists of 10 apartment towers with only 4 flats per floor, with each flat being a corner flat. (2240sft, 1800sft and 1570sft – all 3 bed room flats). The flats were booked by members of the society in advance and only around 40 flats are available at extremely low cost, for new buyers who will also become members of the Society. “

“Each flat comes with 2 covered cellar car parks. The project has the largest Indoor Swimming Pool in Hyderabad. It has two Tennis Courts, Basket Ball court, Two Indoor Shuttle Courts, AC Gym, Library, Restaurant, Creche and other amenities including Landscaped Gardens and Children’s Play areas” added Mr. Ram Kumar.

“With its impressive 35000sft Club House, CEWS provides the largest club space per family of ~90sft which is more than double the space provided by any other integrated township in Hyderabad” Said Mr. Ram Kumar

The project architecture is by Akshaya Architects one of the largest Architectural Design firms in Hyderabad. The project promises to be a harmonious island of luxury, in the green Western suburbs of Hyderabad. With Tishman Speyer township coming up at Tellapur, this locality is poised to become an up market residential zone which would supports the commercial expansion of Gachibowli and Hitecity.

PBEL City Project

PBEL Property Development (PPD) has tied up with engineering and construction company L&T for its project, PBEL City, on the outskirts of Hyderabad. Under the agreement, L&T will build about 2,000 apartments for PBEL on a turnkey basis at an outlay of Rs 552 crore. The entire project will be completed in the next four years and will house 13 residential and two commercial towers. Each tower will comprise 19 storeys with each level having 12 flats, PPD director Anand Reddy said.

Reddy said PBEL was aiming at developing 10 million sft of residential and commercial space across Hyderabad and Chennai. The PBEL City will make up for about 4.7 million sft, while the residential and commercial projects coming up in Chennai and the Logistics Park at Shamshabad will add 4 million sft and 2 million sft respectively. “There is no denial that the market has slowed down. But it is now a more mature market with genuine buyers,” Reddy said, adding that about 40 per cent of its two-bedroom flats have already been booked.

Hyd Metro Rail Update

The Andhra Pradesh government Saturday extended for the second time the last date for submitting financial bids for the Rs.12,132 crore Hyderabad Metro Rail (HMR) project to June 14.

This is the third time in as many months that HMR project authorities have extended the deadline as the shortlisted bidders did not come forward to submit financial bids.

The state government had earlier set April 9 as the deadline, extended it to April 21 and then till June 7.

Earlier this year, eight consortia had qualified to file the financial bids.

These were consortia led by Reliance Infrastructure, Lanco Infratech, GVK, GMR, L&T, Soma-Straburg, Transstroy and Essar groups.

GVK and GMR pulled out even before submitting the bids amid reports that the bidders were apprehensive of the financial viability of the project in the changed scenario.

The authorities called for fresh global bids in July last year after scrapping the deal with Maytas Infra, a sister-concern of scam-hit Satyam Computer Services, as it failed to achieve financial closure.

The elevated Metro Rail project will be taken up in public-private-partnership on design, build, finance, operate and transfer (DBFOT) basis.

The ground work on the project for three routes of 71.16 km is expected to start by October and the entire project is expected to be completed in four years.

Maytas-led consortium had bagged the project in 2008.

The government also forfeited Rs.71 crore deposited by the consortium as performance guarantee and as advance towards Rs.30,311 crore it promised to pay to the government over the concession period of 35 years.

Vizag Market - Price Correction

The realty sector in Visakhapatnam, after experiencing a lull for the past 2-3 years, has been showing signs of revival in the last few months. It is estimated that 1,500 or more apartments may have been sold in recent months in the city, and a spurt in is also noticed in the sale of plots on the outskirts.

The downward trend began in 2007 when most of the projects stalled. Companies which purchased land in bulk auctions conducted by the Visakhapatnam Urban Development Authority (VUDA) at high prices of Rs 5 crore or more per acre could not take up the projects. Even now there are no major housing projects under construction in the city or the outskirts, except one, Haritha, taken up by the VUDA in association with Singapore-based Jurong. .

Smaller projects

The smaller apartment projects which got stuck during the slow period have been completed by the builders. There has been a price correction, by 15-20 per cent in the city limits, and above 20 per cent on the outskirts, making it more affordable for the middle-class to purchase apartments.

According to Mr Narasimha Rao, an architect, it is the affordability factor which has led to the current spurt in sales. “Builders have realised that it is no longer possible to sell apartments at the rates witnessed during the boom period. They have cut their margins and there has been a price correction. Still, I feel there is room for a further cut. At present rates, however, the apartments are within the reach of the middle classes,” he says.

Mr Subba Raju, chairman of the Visakhapatnam Apartment Builders' Association, has said that the smaller housing projects within the city or on the outskirts have been completed. “These projects were stuck during the past two or two-and-a-half years. There has been a price correction, making it affordable for the middle classes. But I don't think there is room for any further cut.

“Construction costs are on the rise all the time. It is a welcome feature that most of the stalled apartment projects are nearing completion or have been completed. We are shaking off the impact of recession.”

Telangana effect

In response to a question whether the recent political developments relating to a separate Telangana state have had any bearing on the realty sector here, Mr Subba Raju said excessive importance should not be attached to the Telangana factor. “The Visakhapatnam-Kakinada coastal belt is attracting investment on a large scale in recent times and the growth of the realty sector depends on the pace of these projects primarily rather than political developments relating to Telangana. Of course, Telangana is one of the factors to be taken into reckoning but it should not be exaggerated,” he opines.

Mr Narasimha Rao is of the view that there is no likelihood of any artificial boom in the Vizag region because of the Telangana factor, but it will have a bearing. “Visakhapatnam and Nellore are attracting a lot investment in recent times and the trend is likely to continue, regardless of the Telangana developments, but the political factor may have an impact on the pace of the projects,” he has said.

There is also a view that the Telangana factor is more relevant tothe Vijayawada-Guntur region than the Vizag-Kakinada belt. An artificial boom in realty prices is more likely in the former than the latter.

India's biggest land deals

Property in Mumbai has always been a real estate developer's prized catch. Over the years Mumbai has topped the list of cities with the most expensive property prices.

Land is the most precious resource today and builders are willing to pay any price to establish a foothold in the country's financial capital.

Mumbai saw its biggest land deal when a plot of 25,000 sq mts (6.1 acres) was bagged by Lodha developers for a whopping Rs 4,053 crore (Rs 40.53 billion) which is about Rs 81,818 per sq m.

The Lodha group quoted more than double the reserve price of Rs 1,980 crore (Rs 19.80 billion) set by the Mumbai Metropolitan Region Development Authority for the property in Wadala, a central Mumbai suburb. MMRDA had invited bids for constructing a landmark building offering five million square feet, at Wadala in Mumbai on design, build, own, operate and transfer basis.

The second closest bid was by Sunteck India at Rs 3,465 crore (Rs 34.65 billion), followed by Indiabulls Real Estate at Rs 3,327 crore (Rs 33.27 billion), while Gaurhari Estate quoted Rs 2,251 crore (Rs 22.51 billion).

Lodha Developers, which plans to launch a $650 million initial public offering later this year, plans to build a Rs 10,500 crore (Rs 105 billion) residential building (101-storeyed) in the heart of the city.

The tower will offer 50 lakh sq ft (5 million sq ft) of built-up area with several eco-friendly systems, which would include energy conservation, re-cycling of water and heat generated by the air-conditioners, etc.

This is the first successful auction MMRDA has carried out after 2008, indicating a revival of more big-ticket deals in the city.

In 2008, Delhi-based developer BPTP had bagged a 95-acre plot in Noida for Rs 5,000 crore (Rs 50 billion), but the deal was called off later

Unitech

In 2007, Unitech bought a 1,750-acre plot in Vishakhapatnam from the Andhra Pradesh Infrastructure & Industrial Corporation (APIIC) for Rs 3,328 crore (Rs 33.28 billion).

In one of the biggest deals in Noida, Unitech also bagged a 340-acre residential plot for Rs 1,582.83 crore (Rs 15.82 billion).

Adani group

India saw its biggest land deal four years ago when the Ahmedabad-based Adani Group alongwith with Housing Development and Infrastructure (HDIL) bought around 48 acres at Bandra-Kurla Complex (BKC) for Rs 2,250 crore (Rs 22.50 billion) to develop a commercial and retail hub.

Mumbai has always been a hotspot for property deals, followed by cities like Gurgoan, Noida, Chennai and Ahmedabad.

DLF

In 2009, DLF bagged 350.7 acres in Gurgaon for Rs 1,750 crore (Rs 17.50 billion). In 2007, DLF paid Rs 1,675 crore (Rs 16.75 billion) for 38 acres of land in west Delhi.

DLF bought 17acres of textile mill land from NTC for Rs 702 crore (Rs 7.02 billion) in 2005.

Bhushan Steel & Essel group

Mumbai has seen three large property deals in the last one and half years. A consortium of Bhushan Steel and Subhash Chandra's Essel Group bought a 250-acre plot in Kharghar (Navi Mumbai) for Rs 1,530 crore (Rs 15.30 billion) from the City and Industrial Development Corporation of Maharashtra (Cidco).

With the realty sector recovering from the economic slowdown, more property deals are set to be sealed this year. The Railway Land Authority (RLDA), National Textile Corporation (NTC) and Mumbai Metropolitan Region Development Authority (MMRDA) are planning to auction more land.

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Reliance

In 2006, Reliance Industries bought 18.5 acres at Bandra Kurla Complex for Rs 1,104 crore (Rs 11.04 billion) to build a convention-cum-exhibition centre.

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Wadhwa Group

In 2007, Wadhwa Group hit the headlines when it paid a whopping Rs 831 crore (Rs 8.31 billion) for a less two acres in Bandra Kurla Complex.

In January 2010, the Wadhwa Group acquired 18.18 acres from Hindustan Composites Ltd for Rs 571 crore (Rs 5.71 billion) at Ghatkopar in West Mumbai. The group develops residential apartments, malls and multiplexes, commercial office space, hotels and IT parks.

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Ahmedabad

In May 2010, Ahmedabad saw one of the biggest land deals when local realtors along with some Non-Resident Indian investors bought 1,650 acres for a whopping Rs 800 crore (Rs 8 billion) on Thol-Sanand road, north-west of the city. The group plans to build a township and a golf course.

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Nitesh Estates

In December 2007, Bangalore-based Nitesh Estates won the biggest land deal in Chennai for Rs 642 crore (Rs 6.42 billion) in the Boat Club area.

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Brahma Management

In May 2010, New York-headquartered investment firm Brahma Management bought 13 acres of land in Gurgaon for Rs 620 crore (Rs 6.2 billion).

In 2007, the Leela Group purchased a three-acre plot at Chanakyapuri in New Delhi for Rs 635 crore (Rs 6.35 billion).

Sheth Developers

Mumbai-based company Sheth Developers bought the GTC (Golden Tobacco Company) property at Ville Parle in suburban Mumbai for Rs 591 crore (Rs 5.91 billion).