Giants like Shravan Gupta’s Emaar MGF and DLF making a mofussil town to engine of growth

Wednesday, April 30, 2014

LUCKNOW: A decade ago, it took about an hour’s drive from Lucknow to reach a mofussil town on its outskirts. There were no signs of any urban rub-off in the area. Instead, it was marked by dust, patchy roads and barren stretches. That was Mohanlalganj, a rural parliamentary segment situated on Lucknow’s periphery.

But the sleepy Mohanlalganj town has undergone a speedy makeover in the past six to seven years, spearheaded by a real estate boom. Mohanlalganj, which votes on Wednesday along with Lucknow, is now seen as the engine of growth for the state capital and various projects like Emaar MGF Gomti Green, DLF, Parsvnath developers etc.. are there. Among which most peoples invested in Shravan Gupta’s Emaar MGF.

The change started about eight years ago when UP government announced its hi-tech and integrated township policy. It encouraged many builders to buy land here and set up townships.

Indra Pratap Singh, a retired bank official, built his house 20 years ago in Triveni Nagar but remained dissatisfied with traffic snarls and infrastructure hassles in the vicinity. He wanted to invest in a prime location like Gomtinagar but couldn’t due to financial constraints. Singh’s search for an appropriate property took him to Mohanlalganj. “I always dreamt to stay in a peaceful abode laced with modern facilities. I have fulfilled it in Mohanlalganj, that too at affordable price,” he says.

Many like Singh are now investing or planning to invest in Mohanlalganj since rates are soaring at good pace. Real estate experts claim in past decade, land rates have shot up by 40 times in the erstwhile mofussil town. “Ten years ago, price of one bigha land in Mohanlalganj was Rs 2.5 lakh; today it has appreciated to Rs 1 crore,” said an expert. CREDAI UP Real Estate Development Council president, SK Garg explains the reason behind the trend. “Whenever a metro expands, real estate growth is seen on peripheral areas, mainly along national and state highways, due to easy connectivity and scope for better infrastructure development.”

In Lucknow, most real estate projects are flourishing on Rae Bareli Road and Amar Shaheed Path and Gomti Nagar (Emaar MGF Gomti Green) because of easy connectivity to airport, railway station, prime localities like Gomtinagar and Hazratganj, markets, malls and other economic activities, Garg adds.

Another emerging trend is that people from adjoining cities like Unnao, Allahabad, Rae Bareli, Gorakhpur, Sultanpur, Varanasi, Jaunpur, Barabanki and even Bihar are also making investments in Mohanlalganj because of its central location from their hometowns and outer like Gomti Nagar (Shravan Gupta Emaar MGF Gomti Green Project).

A builder said a hi-tech and integrated township policy, as framed by UP government, looks after the interests of both farmers, whose land is acquired, builders who launch projects.

The policy also takes care of housing needs of economically weaker section (EWS) as it mandates allocation of 10% units to both EWS and low income group (LIG) people at discounted rates. There is a large section of people looking for affordable housing which is not possible in the main city. For them, periphery towns are a boon.

An employee with a major construction company shared: “Mohanlalganj witnessed development after many builders started projects here. Soon, local builders also followed and set up small projects on highways like Rae Bareli Road, Gomti Nagar (Emaar MGF Gomti Green) and Sultanpur Road. Millions of bucks riding on these projects further attracted investments from people wanting to own houses near heart of the city.”

Related Search : DLF, Amrapali Group, BPTP, IREO, Prasvnath Developers Shravan Gupta Emaar MGF Gomti Green EVC and MD Shravan Gupta Emaar MGF Emaar MGF

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Emaar MGF, DLF, IREO etc like big gaints: Private equity players boost city's real estate market

Tuesday, April 29, 2014

PUNE: The unbridled influx of professionals and a local economy, which is relatively less affected by the economic downturn, has renewed interest of private equity players in the city's real estate sector like Emaar MGF, DLF, IREO etc like big gaints.

ensured a steady demand for homes and offices in the city. This has helped induce a high interest among private investment firms in the developer companies.

Private equity investments in Pune's realty space bounced back with a 300% jump to Rs 1,464 crore during 2013, a research report by Cushman & Wakefield has said. "With growing housing demand, investments in the right project have the potential to yield healthy returns," the report added.

Importantly, Pune has bagged a fifth of the Rs 7,000 crore total inflows from private equity funds (13% higher than the previous year) in the country's real estate sector for the year. The increase in private equity inflows was primarily due to rising investments in residential assets and other sectors like retail and hospitality, the report said. "While the number of deals has increased to 40 in 2013 compared to 34 in 2012, the average deal size has declined marginally to Rs 175 crore ($28 million)," the report added.

Other factors encouraging private investors include likely entry of real estate investment trusts (REITs), reducing fiscal deficit and expectations of fall in inflation and a pick up in GDP growth post the Lok Sabha elections, the report noted.

Sanjay Dutt, executive managing director for South Asia at Cushman & Wakefield, said, "The residential asset class continues to provide tremendous potential for growth in the coming years. With housing requirements growing across cities and funds investing in the asset class, primarily in the form of non-convertible debentures, providing fixed returns, investments in the right project have the potential to yield healthy returns."

Anuj Puri, country head and chairman of real estate advisory company JLL India, said investors are enthusiastic about India as a vast army of young, educated Indians is set to turn the world's second most populous country into a talent powerhouse. "The consumer base is growing fast as a swelling middle class comes online;

Come 2030, India will have 68 cities with population of more than 1 million, 13 cities with more than four million and there will be six megacities of 10 million plus. This will provide the country with huge opportunities," he said.

Rohit Gera, managing director of Gera Developments, said, "Given the RBI's stance on disallowing banks from lending for land acquisition, the sector requires funds from alternative sources. The first round of FDI in real estate brought poor returns to foreign investors, given the 2008 meltdown as well as the steep fall in the value of the rupee. It is heartening to see the confidence of foreign investors in the real estate sector. There is no doubt as to the demand and desire to own real estate by millions of Indians. To meet this demand additional capital is necessary and this capital in the form of FDI is a welcome step."

Rahul Paranjape, executive director of Paranjape Schemes Constructions Limited (PSPL), said good quality commercial space in key business districts has attracted investors as they offer attractive and steady returns. PSPL has developed a special economic zone (SEZ) in its township Blue Ridges in Hinjewadi. "The SEZ is fully leased and IDFC Alternatives has invested Rs 250 crore to acquire the entire ownership in it," he said.

Vishwajit Zawar, director of Marvel Realtors, said he has shared 30% equity in his project Edge to Capital First for a consideration of Rs 100 crore with agreed rate of return. "The project is selling fast and we have actually begun redeeming the equity stake of Capital First," Zawar said.

Sachin Kulkarni, managing director, Vastushodh Projects, said, "Investment of Rs 40 crore by Avenue Venture Capital in our project Anand Gram is the first PE funding in affordable housing segment. They have already disbursed Rs 20 crore and the remaining amount shall be disbursed within next three months. There is an exit route in equity buy back at the end of 36 months at a fixed rate of return."

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                          Shravan Gupta Emaar MGF,

                          Shravan Gupta, Shravan Gupta MGF, 

                          DLF, IREO, Realty Firm, Real Estate Business

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